How to measure the success of a company

There is no formula for measuring the success of a company. Most of the focus on measuring the success of a company deals with numbers related to the balance sheets, profits, shares and finances of a company. However, the impact of a company is often beyond these numbers. The measure of success is different for different companies, while for an early stage start-up, success is about survival. For an enterprise like Google, success is about changing the way people use information and make decisions. 

The true measure of success for any organisation depends on its goals. However, there are certain benchmarks that the most successful organisations have when it comes to success. The most remarkable companies on the planet are those that have transformed the world to be a better place. They have changed the way people do things and created a huge impact by their presence. Those companies have transformed the lives of people for the better. Google has changed the way information is consumed in the world. It has revolutionised how people search information. That is the true measure of success for a company. 

Company is an agent of change and transformation. A successful organisation creates employment, business opportunities, contributes to the growth of the country and makes a positive contribution to the society. The success of a company can be measured in terms of what it is giving back to the society.  Success of a company is the social impact it creates. Company is a responsible medium to change the lives of people around it. 

The evaluation criteria and benchmarking of a company needs a thorough study of various factors. These include the list of parameters that are taken to gauge the performance of the company. Some of the questions that need to be addressed while devising measures of success are as follows: 

What is the benchmark of success in the organisation? 

How is the success of a company measured? 

What are the parameters of measurement for measuring success?

What is the impact of the company?

Is the company doing well for its stakeholders? 

Has it been able to create employment? 

What are the timelines for measuring the goals? 

What are the targets for each of the parameters for measuring success?

CheckList

Below is a checklist that can be used as a reference by the board for taking actions to measure success of a company. While each company will have different yardsticks and timelines for gauging success, this list provides some factors that can be used for evaluating the results. The timelines used for measuring these parameters usually varies between 1-3 years and targets are set depending on the present situation and the projections by the board. 

Factor	Measures
Employee Satisfaction	Personal/Work Satisfaction, Salary, Surveys & interviews
Customer Satisfaction	Proactive communication, Surveys and accountability
Stake Holders	Performance against targets, surveys & stake holders reviews
Management Satisfaction	Corporate reputation, Profitable Investments, Surveys and questionnaires
Society	Milestones to gauge social impact & role in society
Number of Employees	Software tools for HRM
Total Assets	Tangible/Intangible  assets Products, Revenues etc.
IPR	Calculate & track the innovation in the company
Rate of Growth	Calculate sales, Revenues, product/services growth
Customer base	Use CRM tools to track customers

It is important for a company to set the goals and benchmarks to measure its progress. The most successful companies develop a process for tracking and reporting their business performance using software tools, researches and other methods. The review process examines the results for fine tuning & helps in the performance measurement for driving best organizational results. A truly successful company is the one that leaves an indelible footprint in the history of time, inspiring generations to strive for a better tomorrow with grand accomplishments.  

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