A business expert at the University is warning entrepreneurs to “not throw the baby out with the bath water” if they want their firm to survive.
Dr Christian Stadler, from the University’s School of Management, is warning against businesses changing too much to keep up with the times and losing sight of their core values.
In his book Enduring Success: What we can learn from the history of outstanding corporations, he studies nine businesses that have been successful over a 100 year period and compares them to others that have been less successful.
His study, which took a team of eight at the University six years to complete, outlines five main principles for success:
- Exploit before you explore: don’t just go for innovations, make sure you make the most out of them
- Be conservative in your finances and beyond
- Diversify into related businesses
- Learn from the past and in particular your mistakes
- Change in culturally sensitive ways
He said: “We are in difficult times and companies have to change but some people think that means starting afresh whereas that is not always the best way. Change is good but you need to keep hold of your core values. Don’t throw the baby out with the bath water.
“These days companies are folding all the time. Habitat was the most recent big example last month with all but three UK Habitat stores being put into administration.
“Maybe if they had followed my principles they would still be going strong today.”
Dr Stadler studied successful European companies including Shell, Siemens and HSBC to develop his five principles. For each company he made a comparison with a similar firm that didn’t do so well.
He refers to the successful companies as ‘Intelligent Conservative Companies’.
He said: “Some companies change beyond recognition which means people no longer understand what they stand for. Intelligent Conservative Companies change, but don’t try to re-invent the wheel!”