Lessons From Century Club Companies: Managing for Long-Term Success
Present leaders of Century Club companies see themselves as stewards or custodians of the business and feel an obligation to manage the firm in a way that both honors the past and ensures its survival into the future. This deliberate focus on continuity, rather than making a name for themselves, results in real differences in the way old companies
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It is difficult to overstate the importance of “institutional memory” built up over time that resides in long-term employees. Century Club companies also tend to develop leaders from within, using a deliberate process for leadership succession.
Vicki TenHaken • Lessons From Century Club Companies: Managing for Long-Term Success
Developing leaders from within the firm appears to be one of the key differentiating factors in sustaining a business for the long term. The old companies are concerned not just about reaping today’s harvest, they are cultivating the ground for future crops. This factor is especially apparent in the area of leadership development.
Vicki TenHaken • Lessons From Century Club Companies: Managing for Long-Term Success
survival is the ultimate performance measure.”
Vicki TenHaken • Lessons From Century Club Companies: Managing for Long-Term Success
Frugality in running the business enables the company to set aside money in prosperous times to help weather the lean years. This approach to financial management also means money is available to internally fund new opportunities when they arise, thus avoiding external sources of financing, or having to convince others of the value of an initiative
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The connection between employee training investments and long-term employment is well documented
Vicki TenHaken • Lessons From Century Club Companies: Managing for Long-Term Success
Every privately-owned Century Club company interviewed said staying private was key to their longevity.
Vicki TenHaken • Lessons From Century Club Companies: Managing for Long-Term Success
Several of the oldest known continuously-operating companies in the world are Japanese. Seven were founded prior to the year 1,000. The size of companies in the database of Japanese firms over 100 years old clearly proves that firms do not have to grow large to survive. In fact most shinise are small- to medium-sized, private (often family-owned) b
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What did seem important was that leaders follow the principles of longevity, including embodying the corporate culture and its values, and having a stewardship approach to running the company so it survives to the next generation.