Lessons From Century Club Companies: Managing for Long-Term Success

Factor 3: Close relationships with business partners

survival is the ultimate performance measure.”

Factor 2: Unique core strengths and change management

The willingness to learn from all partners is seen by the old companies as an important factor in their long-term survival. Century Club companies truly believe part of the reason for their success comes from their long and deep relationships with customers and suppliers. This emphasis on long-term relationships leads to a kind of symbiosis with th

A premise of this book is that a fundamental objective of any organization, though often unstated, is survival.

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.

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.

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

One thing we learned from the Century Club companies: the first step is deciding that survival is the ultimate goal. From there, the five practices forming the longevity model can help you reach it.