Definition of Success

Defining "success" for a modern corporation is a complicated matter. There was a time when the purpose of any corporation was to simply maximize the earnings per share available to stockholders. However, that doesn't seem to provide a very satisfying definition for most corporations of today. For one thing, most enlightened management teams now accept the notion that shareholders are not the only constituency that needs to be served by the enterprise. Shareholders are joined by customers, employees, the surrounding community at large and vendors, and balancing priorities among these various interests is central to defining the success of the company.

As if the allocation of financial, human and time resources among these diverse groups is not challenge enough, each of them typically has needs in the long term that are different from its short term needs. It is up to management to incorporate some element of that time spectrum into the definition of success for the company, if it is to develop a Business Model for "success".

While there is no single definition of success for all companies, establishing a clear understanding of the definition to be applied to any particular company is central to developing a Business Model for achieving that success. The clear communication throughout the company of that definition of success and its corresponding Business Model is critical to aligning the objectives of all the stakeholders in the company, greatly increasing its odds of prosperity.

The Chesterfield Group can help you work through the process of structuring all these considerations to develop a definition of success that will work for you.