It’s Not Just About Dollars & Cents
How do you measure success? Is someone successful because of the amount of money they have … their contribution to society … their strength of character … their heroic selfless act … or what?
Is a business successful because of how much money it makes … the way it treats its customers … the way it treats its employees … its contribution to the environment … its contribution to its corporate social responsibility … and so on?
A good example of the perception of success is the big 4 banks. With profits, on average, posted upwards of $4Billion each year, you could say the banks are successful. The shareholders certainly think they are and are happy as are those employees/stakeholders who gain benefit directly linked to the bottom line. But, as we are constantly hearing, customers are continuously unhappy and frustrated with services, costs and general treatment. So, in customers’ eyes – are the banks successful?
The point I am getting to is that it is important to make money in business, however, equally important to the dollars and cents, is to set and measure other goals which directly and/or indirectly lead to success.
To illustrate this point, here are some examples:
|Goal||Measure||Action to Support Goal
|Stable Workforce||Less than 1 % annual turnover rate||Hold Exit interviews to find out why staff are leaving
|Increase quality of service||Customer satisfaction 97% or higher||Conduct customer satisfaction surveys.
|Increase Brand awareness||5% increase in traffic to website||Ensure Google Analytics is set up.
|Improve booking rates from enquiries.||Secure 5 bookings from every 25 enquiries||Train receptionist in phone sales.|
Each of these goals contribute to the bottom line. However, the measures and actions are not viewed from a monetary perspective. Remember, customers do not all rate your product or service simply on price; they can look at a lot of other things as well. Focusing on different forms of success in a business and working on them, ultimately will contribute to overall success – and isn’t this what all business owners are trying to achieve?
Call one of our professional people today to help you on your road to success (07 3264 4783)