4C’s

CONTINUITY. Pursuing a lasting mission of sub- stance, not a dollar-driven strategy.

COMMUNITY. Nurturing a caring collective, not a tournament atmosphere.

CONNECTION. Securing generous relations with outsiders instead of one-shot bargains.

COMMAND. Acting as an unfettered steward rather than a servant to short-sighted share- holders.

As we will explain in this article, outstanding firms exploit what we call the 4C’s of Con- tinuity,
Community, Connection and Com- mand, turning these features into sources of distinction and
competitive advantage. By contrast, those firms that don’t display these features, or that do so less
consistently, are the ones that tend to struggle or fade away.

Although the 4C’s are more commonly associated with family businesses, they are perfectly suited to
non-family firms, whether small, medium or large. Size isn’t as much of a determining factor as the
courage and pa- tience of management to shift the company’s priorities and tweak its business model
until the 4C’s become second nature. Our research base of family firms is relevant for all firms looking
for long-term survival

No.of SEs

in Europe, where there are more than 20 million SMEs accounting for the vast majority of
employment and value added, ac- cording to a report by the global auditing firm Mazars.
However, slow economic recovery and depressed demand – particularly in Ire- land, Spain
and Portugal, three countries with a high preponderance of SMEs – have resulted in rather
weak SME performance,

Whereas SMEs are considered the backbone of

many economies, their role is even more essential in
Europe, where SMEs account for the vast majority of
employment and value added.
Continuity:

The main thing to remember about Conti- nuity is that it must be tied to a broad enough competency or
mission. Otherwise, if your firm’s future hinges on a relatively narrow product, technology or market,
and you fail to keep updating your offerings and processes, such complacency can lead to costly obsoles-
cence and eroding returns.

Continuity is far more effective if you fo- cus on the competencies critical to attaining your objectives
and invest resources accord- ingly.
Community :The next decisive factor is Community – trea- suring people, for it is they who must
turn the company’s dream into reality

The best performing companies were those that, despite

recession, retained their talent instead of retrenching. Such
loyalty helps motivate people to give their best even after things
pick up again.
Drawbacks:
When taken to an extreme, Community has its drawbacks. A cohesive community can become an insular one.
If a company becomes too selective and intolerant of opposing voic- es, it risks losing touch and being squeezed out
of the market. Community is wonderful, pro- vided it remains relevant and realistic. For ex- ample, while a
certain degree of failure should be tolerated to encourage employee initiative and commitment, one has to avoid
gross de- viations from basic operating principles and core values.

Connection:
Allied to Community is the formation of Connection with external stakeholders – an-
other source of advantage. Like Community, Connection is concerned with the human
di- mension. But instead of trying to form tighter emotional bonds with employees,
firms seek to build enduring, stable, mutually reward- ing relationships with suppliers,
clients andthe broader community, often building ample social capital in the process.

For small businesses seeking to build sturdy

foundations, be attentive to clients’ needs and more generous
than rivals. It may squeeze you in the short run, but over the long
haul you will realize more value.
Command:
Just about all the companies we researched once
started out as small enterprises. If you are working in an SME,
try reflecting on the lessons of this article as they apply to
your own particular situation.
 PRIORITY PRACTICES

Continuity Pursue an enduring, Embrace a meaningful

substantive mission mission
Ensure a healthy, long- Build the core
lived company to realize capabilities on which
it the mission depends by
investing patiently and
by sacrificing
Exercise careful
stewardship
Foster executive
apprenticeships and
lengthy tenures

Community Nurture a cohesive, Stress clarion values

caring culture with Socialize continuously
committed and
motivated people Create an enlightened
“welfare state”
Foster informality that
frees initiative and
teamwork

Connection Develop enduring, win- Partner closely with

win relationships with clients and suppliers
outside parties to Cultivate broad
sustain the firm in the networks
long haul
Keep in touch with
(even ex) customers
Be generous with
stakeholders
Command Preserve the Act with speed,
freedom to make boldness and originality
courageous, Encourage diversity
adaptive decisions
Empower the top
Keep the firm spry management team to
act in this way