13 Mar Measuring the Success of Your Business
How to Measure Success
From time to time we are asked what is the key metric for measuring the success of a business. In addition, we often see this question forming the basis of a discussion thread within the context of social media, sparking engagement, but often generating a ‘typical’ response. Our response on the other hand, is not typical, as we unintentionally stand out from the crowd, although more often than not our approach tends to resonate with many business owners.
Business leaders will often say that you measure business success by traditional financial metrics such as; revenue, profit, cashflow etc. and whilst we don’t dispute their importance, indeed we would argue that they are the lifeblood of any business, on a standalone basis, we do not believe that they indicate success. Our belief is validated by the sudden downfall of many of the world’s most profitable companies, such as; WorldCom, Nokia, Blackberry, Lehman Brothers and Woolworths to name a few.
Indeed, even iconic brands such as Apple who have seen over a decade of year on year growth, are vulnerable when they focus on revenue alone. At first glance when you look at the company’s revenue you see nothing wrong, but if you dig a little deeper, you discover that an imbalance between innovation and value has caused a rapid decline in their overall market share. Maintaining the company’s success is not easy, which is why all companies need to create a solid foundation.
It is clear that success runs deeper than financial metrics alone and in the same way that ‘beauty is in the eye of the beholder’, once the fundamentals have been achieved, success is subjective, closely linked to the cause, purpose or belief that the company and its owners. To focus on financial metrics alone would be similar to suggesting that the secret for a healthy and happy life is, wait for it; remember to breathe!
Having worked with numerous business owners and senior executives across various industries, we believe in a success paradigm, where the goal is to achieve balance. Within our own company, Bright Trees, our success paradigm is woven into everyday business through our values; Pride, Curiosity and Happiness. We acknowledge that success is only achieved, when balance is sought.
Measuring success on this basis in not easy and frankly speaking the governance of a large corporate company would not allow it, as unlike the financial results of the business, it’s open to interpretation, subjective and therefore not widely adopted where regulative reporting is required. However, for small businesses and their owners, they are afforded a higher degree of flexibility and a regular holistic review with trusted peers, will help to determine business performance.
Do you want to learn more – At Bright Trees we love a business with a personality, a value driven purpose and a leadership that appreciates that business growth and personal growth go hand-in-hand. We don’t believe that there is one single measure that can determine the health and success of your business. Our methodology is designed to take a more holistic view and through working in partnership with you we bring together a wealth of ‘big company’ corporate experience, specialised knowledge and expertise to support your business and personal growth.
If you want to maximise your full potential and achieve the business growth that you desire, then please do get in touch.