EDITOR ’ S QUESTION fundamental definition of success becomes multidimensional and fluid . Measuring business success requires a holistic and sometimes nuanced approach .
Indeed , defining a business goal at the outset of any initiative , or at least identifying a North Star to guide subsequent actions , makes it easier to measure progress . However , if the initial goal was chosen incorrectly , then making substantial progress toward that goal might not correlate with success .
In complex situations , the journey is often equally important as the destination , and in this context , measuring success requires plotting a series of outcomes on multiple axes .
Measuring success can be as simple as asking : “ Did we win ?” This straightforward approach works best when you are involved in a competition with universally accepted rules and defined end states ; the final score is all that matters , and success is as simple as “ Yes .”
IN COMPLEX SITUATIONS , THE JOURNEY IS OFTEN EQUALLY IMPORTANT AS THE DESTINATION , AND IN THIS CONTEXT , MEASURING SUCCESS REQUIRES PLOTTING A SERIES OF OUTCOMES ON MULTIPLE AXES .
As the saying goes : “ You are what your record says you are .”
However , in business , and often in life , as well , the rules and timelines are constantly in flux . Business is an inherently complex discipline that requires working with dynamic customers , changing requirements and evolving market conditions . As a result of these variables , the
When measuring success at our company , I consider performance against quantitative goals established and agreed upon at the outset of a programme , such as performance against targeted financial projections , KPI-based outcomes or measurable sentiments . I also find that measuring success requires considering additional qualitative factors , such as team sentiment , ethical performance , agility and economic sustainability .
Despite the complexity inherent in leading a business and the multiple quantitative and qualitative metrics available to track success , I try to keep in mind that all businesses are fundamentally simple at their core : a business exists to produce goods and services that provide value to customers .
So , measuring business success boils down to being able to affirmatively answer a few basic questions : Are we pleasing our customers ? Are we fulfilling otherwise unmet needs in the market ? Are we achieving our financial objectives ? And is the team enjoying coming to work every day ?
JOHN GREENSTEIN , CEO , BLUESCAPE
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