Businesses Are Measuring The Wrong Things

How does a business know if it is doing well? Some people would say it is the measure of profitability. Others would say the health of the balance sheet while others might say the stock price over time. Most everyone would chose some financial measure to determine how well and organization is doing. But those are the wrong measures for these times.

Early in the industrial era what mattered was the organizations financial performance. As markets matured organizations realized that a customer satisfaction was important to financial performance. Then the organization realized that employees needed to be satisfied in order for the organization to truly satisfy the customer. Subsequently everyone became obsessed with measuring satisfaction then realized that measuring satisfaction only made people realize just how unsatisfied they really were.

by Jay Deragon

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