What Are Our Results (what is the bottom line)
Every business needs to answer, why are we here?
What is our mission?
What are our results?
Peter Drucker pointed out that all organizations need to focus on results. We need to be performance focused instead of just well intentioned.
Results are the key to survival.
Performance is the ultimate test for any organization. Unfortunately, many businesses don’t prioritize performance and results. For many organizations, being specific about results is odious.
We can define results. Most results can be quantified.
What Is Your Bottom Line?
How does a business measure it’s bottom line? Is it revenue? Is it profit? Providing financial security for family?
Maybe it’s more than just money? Hot Chicken Takeover’s bottom line is building a sustainable business while creating jobs for the unemployable; homelessness, previously incarcerated, or other barrier to employment.
Define your bottom line?
Ask Your Customer for Feedback
Peter Drucker tells us to focus on our customer for feedback. At least once a year ask…
“Looking back, how did we help you solve your problem?”
“What is still important to you?”
“What should we do better?”
“What should we stop doing?”
Identify Meaningful Results
Quantitative feedback is important. Some things you can and should identify.
Did we deliver on time? Did we stay within the budget? How many items were returned for defects? Did we answer customers questions promptly?
Not everything that makes an organization effective can be captured in a metric. Qualitative goals cannot be easily measured but are a key function in every organization. Qualitative goals include team alignment with the mission, creating a healthy culture, and building relationships with customers.
Drucker believed that conversations with the customer and your team are essential. We are motivated and rewarded to cooperate with others for a common purpose.
What are the specific results do you want for your organization? The goal must fit its mission, but also fit the environment.
Inform Staff of the Results
As a leader, you need to report the results back to your team. They expect you to show that the organization is achieving the defined results being measured.
Not all of the team understands the results. You may have to educate some to recognize the results. And you need to stress what the organization does and what it means to them.
Good intentions are no excuse for incompetence. - Peter Drucker
How Well Are We Using Our Resources
Your results provide feedback to leadership. The feedback offers insight into how effectively we are using resources to grow mission impact. And it reminds leaders what we should be doing. Poor results may suggest what we should stop doing and reallocation resources to what is working.
Results are the key to survival.
Wes Legg
Eldred Legg LLC