Business Concepts that are Becoming Myths

HUMAN RESOURCES // BY PAT PERRY

Forget what you thought you knew about business to understand what matters now.

COVID-19, social media, technological advancements, climate change, economic challenges, workplace related legislation and generational differences in the workplace are just some of the dynamics that are affecting every size business across all industries. As a result, many traditional business practices, ideas and programs are becoming extinct, making way for new, innovative and adaptive business models that increase the probability of success in this ever-changing environment. Long-held business beliefs are evaporating quickly. Meanwhile, new perspectives are evolving relative to success and work.

Here are a few traditional beliefs that are radically changing:

#1

BIGGER IS BETTER: No longer is it a guarantee that big companies are great companies. Small and midsize businesses have experienced an epiphany, realizing that they can be more nimble, adaptive and creative than the “big guys.” In addition, top-performing candidates interviewing for open positions are seeking great work experiences regardless of organizational size, not just eyeing a “name brand” company to add to their resumes.

#2

TITLE REFLECTS PERFORMANCE: There was a time when employees assumed that anyone with a senior corporate title was competent, a top performer and a leader. It was an era of unquestioned authority. Times have changed. Today, everything is questioned — and it should be. People occupying positions with management titles need to earn the title, not just be given a title and expect people to follow their lead. Titles now equate to credibility, and if that is shattered, top performers have little to no use for executives who do not do their jobs exceedingly well.

#3

FAST GROWTH COMPANIES ARE GREAT WORKPLACES: The media loves to cover businesses with high growth rates, including those that merge or are acquired. Fast growth is fun to hear about, but it’s incredibly difficult to successfully manage. Few companies do it really well, and those that do tend to be at the top of their industry. In pursuit of great talent, organizations on the fast track are well advised to pay a lot of attention to maintaining a terrific work culture. Otherwise, they may end up being a “one-hit wonder.”

#4

HOURS REFLECT HARD WORK AND LOYALTY: Top performers dismissed this traditional view a long time ago. They understand that hard work and loyalty equate to results regardless of the hours it took to achieve those results. Smart corporate leadership has also bought into this fact and started focusing on what really matters to the organization and employees. Enlightened leadership no longer correlates time worked with company commitment. The 40-hour work week, two-day weekend and traditional eighthour workday are all being questioned as hybrid work schedules are quickly becoming the standard at many workplaces.

#5

CUSTOMERS COME FIRST: This may be a wonderful marketing concept, but it’s not realistic. If companies prioritize customers at all costs, they will lose great employees along the way. When that happens, customer service suffers greatly. Conversely, great workplaces that put employees and their

families first create incredibly strong engagement between top performers and the company. That’s when customer service actually skyrockets.

#6

STRETCH PAYMENTS: The policy of stretching payments to vendors is archaic. Once looked at as smart financial management, it is now a black eye to companies that want to collect quickly and pay out slowly. More and more organizations prefer to do business with companies that pay on time. If your company really has to stretch payments, you may have bigger operational issues that are putting pressures on your cash flow. Please do not punish your vendors due to your organization’s inability to effectively run the business.

#7

IT’S ALL ABOUT THE BOTTOM LINE: This one is a tough concept to swallow. Companies that are primarily focusing on their vision, strategy, mission, top-talent attraction and retention, quality and “WOW” customer service find that extraordinary financial results are the natural by-products of a well-run business. Companies still believing the bottom line is the end-all find they are becoming part of an endangered species.

#8

EMPLOYEES NEED TO BE COMPANY LOYAL: The tables have turned on this once traditional concept. Today, employees expect their organizational leadership to show employees that management is loyal to them. Employees, especially top performers, have recognized that the organization needs them more than they need the organization.

Today’s constant change is the only thing not changing. Stubbornly hanging on to the old ways of doing things is a one-way street to business failure. Conversely, being proactive and adapting well to change increases the odds of personal and organizational success. And that is no myth.

Pat Perry is host of the national Success Wave podcast, business book author, keynote speaker, former ERC president, columnist, NEO Business Hall of Fame member and was named to the 2022 Cleveland 500.