Measurement of Success in Business

By: Sean Gerard Angel Pijuan

Success is a broad spectrum. It can be anything from attaining self-satisfaction to owning a billion-dollar company.  It is wildly different for every individual and group of people, and so is the methods of measuring it. It is mostly in business where success could literally be measured. In the strictest sense, in order to measure something, it has to be quantifiable. The most effective way to measure performance is by having a metrics or key performance indicators. For example; we can measure a business’ success through its net income ratio and profit, new and repeat customers, leads generated and sales indicators. All of these can be used to measure specific performances.

Like life, business goes on. However, its achievements does not always move with it. If a company is able to reach its goal last year, it has to target a higher goal the next or even change its targets. Therefore, an organization should not focus only on the results, but more on the methods and processes that make it successful. The instruments for success are the measurement of success. These are responsible for keeping the organization consistent. The essence of business that keeps it going is the catalyst for its ongoing development – it could be culture, the people, or simply the policies and methodologies that are in place.

 

The Infinite Game

Simon Sinek, a motivational speaker and book author, introduced the concept of the infinite games. He observed that many of the struggles that organizations face exist simply because their leaders were playing with a finite mindset in an infinite game. To best define what infinite games are, we need to compare it with the description of a finite game.

A finite game is like a basketball or chess, the rules are fixed, the players are known and the goals are well defined. Most importantly, it has an end or time limit.

Infinite games are like business, the players come and go, the rules are changeable and there is no permanent goal. It is continuous.

From an infinite mindset, a business should focus on its permanent aspects such as building a culture. Culture is not simply just trusting people; it is about establishing a standard that outlives trends and keeps pace with changes. It has to maintain a degree of excellence. It has to have quality.

 

The Quality

Quality in business, is about meeting or exceeding the metrics. It is about conforming and maintaining a high standard. By consistently reaching these expectations, we can then establish that a company is truly successful.

Quality is the measurement and monitoring of performance. It keeps the organization’s performance in check, driving it to its optimal. Think of it as a conscience, something that reminds us to do what is right all the time. However, like a conscience, business standards need to be calibrated to that of the best. It needs something to direct it:

 

The Quality Management System and ISO 9001:2015

A quality management system is a way of defining how an organization can meet requirements of its customer and other stakeholders affected by its work. It is not just about compliance with a set of standards. It’s about developing a competitive edge, opening up new markets as well as showing clients, customers and employees your commitment to best practice. It will stimulate a quality culture which will energize your entire organization.

ISO 9001 is a standard that sets out the requirements for a quality management system. It helps businesses and organizations be more efficient and improve customer satisfaction. It gives an organization direction towards consistent quality. It helps the business meet the world class company standards, comply with the statutory and regulatory requirements. All ISO standards are reviewed and revised regularly to make sure they remain relevant to the marketplace.

 

The Lean and Six Sigma

Six Sigma is a set of techniques and tools originally devised to eliminate waste and improve quality for manufacturing companies. The method was eventually made popular and found a home in the services industries. The focus of Six Sigma is to eliminate defects and reduce variation. Defects is the failure of a product or process, while variation is the inconsistency. The methodology provides organizations tools to improve the business capability and performance.

Lean is a systematic approach to identifying and eliminating of wastes through common improvements without sacrificing productivity. Wastes are the non-value added activities in the processes. These are the defects, excessive processing, overproduction, waiting, prolonged inventory, unnecessary transportation, wasted effort and non-utilized talent.

Lean and Six Sigma combined will result to an ultimate approach to improve processes. It’s techniques and approach, integrated to the business, will result to continuous improvement and success. 

A business can have many achievements but not be successful. Success is the gradual and orderly continuous improvement that a company is able to drive. It is the identity that the company maintains from its ongoing transformations. Through well-established standards and techniques, a business will know its success through its commitment to quality and progress.

Sean Gerard Angel Z. Pijuan is the Senior Quality Management Officer of Invictus Prime Holdings Corporation, a group that manages the consolidation and integration of operations within its companies:  Complete Logistic Control Inc., ZKO Group Distributors Inc., Philfast Global Forwarding Inc., Satellite GPS Tracking and Asset Management System Corp., and SCMIX Builders Inc

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