WHAT MAKES AN ON-LINE BUSINESS EFFECTIVE?What makes an on-line business effective are
same ingredients that make any business effective. The only difference is that in an on-line business we don’t see our customers. We don’t see other people who work in our business. We don’t see most of people we bring in to business. But principles are same.
I did a research study a while back to find out common factors of effective. My study design was a meta-analysis. All that means is that I studied what other people had already studied on subject related to my interest, what causes businesses to be effective. The meta-analysis approach is considered most powerful of research studies, meaning results are considered most valid.
After pouring over all literature on successful business practices my findings boiled down to this.
1. Effective businesses build into their organization a culture of change because their leaders seem to understand, as William Bridges put it, that “unless organizations change and change quickly they will not survive.” That makes sense. I teach cultural anthropology at a local University. I teach my students that one of fundamental features of culture is that all cultures change. And of course people change. And rate of change is getting faster every day. The defining measurements of pre-computer Cold War age was fear, control, and protection. According to New York Times Pulitzer price winner Thomas Friedman, defining measurement globalization is speed. The most frequently asked question in business world used to be, “whose side are you on?” The most frequently asked questions today is “to what extent are you connected to everyone?” According to Central Intelligence Agency’s Fact Book, there were 934 million internet users in 2004. It is estimated that there will be 416 million new internet users by 2007. At that rate 16,000 new users enter world of internet world every hour of every day. That’s change and that’s speed. The most successful businesses understand this and they are constantly adapting to tap into resources these new users represent.
2. Effective businesses share information. The reason for this is expressed best by Sally Helbesson. “Withholding information and power from others assumes they are incapable of handling it and it deprives business of a rich and powerful resource.” Let’s face it, trade secrets don’t exist in today’s information rich, speed-driven world anyway. Effective businesses also share information because they want everyone to see how whole organization functions. This enhances understanding and in doing so enhances commitment, a powerful principle for business effectiveness.
3. Effective businesses have a high tolerance for mistakes. That’s because no mistakes mean no experiments. It demoralizes and reduces creative insights that could literally catapult a business to higher performance. Edison was ridiculed for spending almost every waking hour of every day trying to find a way to produce light through connectors inside of a glass bulb. When asked why he didn’t quit and spend his time on more productive activities he answered, “each time something doesn’t work I’m that much closer to finding solution because I’ve eliminated one more application I know doesn’t work.” So effective businesses tolerate mistakes.
4. Effective businesses focus on mission. I often refer to Peter Drucker as mentor I never met. He’s over 90 years of age and has written over 100 books on management principles. I’ve read most of them. According to Drucker, effective businesses “constantly ask, ’what is our mission. What are our goals. They do not start with question ’what do I want.’ They start out asking ’what needs to be done?” Effective businesses do this because they know if they are to survive long-term they have to have a reason for being beyond just making money. That’s why mission statement of MacDonald’s is to be world‘s best quick service restaurant experience…so that we can make every customer in every restaurant smile.” Coincidentally, MacDonald’s has also made a lot of money. If your only goal in wanting to get into on-line business field is to make a lot of money for yourself you may achieve some short-term success. But you won’t find ultimate happiness. You’ll squander your earnings and wind up in worse shape than you are now. Look at many professional athletes who made millions during their careers and are now living in poverty.
