Tuesday February 07 , 2012
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Measuring success

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After an organization has developed its strategic direction, we examine how they have defined success?  Examples might include, “Loyal Customers,” or increased share of market, or return on equity. 

Each organization defines success differently.  In many organizations this critical element is simply and inappropriately defined as plus 10%.  That is if an organization has 10% growth over the previous year they claim success. 

Anything less is deemed unsuccessful.  This mindset prevents good companies from becoming great and weak companies from becoming good.

Therefore, we look at their definition of success to see if where they are today is different from where they want to be tomorrow. 

If there is a difference, then as an organization they must do something differently. 

A definition of organizational insanity is to do the things that you’ve always done, but to expect different outcomes. 

We see this when organizations want to increase their share of market, but are unwilling to consider new technology, packaging, distribution, etc. 

Instead they beat up the sales organization to get more sales. 

The problem is what they’ve been doing isn’t working. Therefore, they need to try something else.

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