What matters in business?

This morning I was having a talk with my colleagues on what constitutes a good business model. While my friends came up with what constitutes a good business model with enough strategic planning, financial planning, market research, costing, production planning, HR planning, suppliers, supply chain partners, sc design etc, I was insisting on the aspect of customer value. 

I kept stressing from an Operations perspective how organisations that are obsessed with customers and offer great value will be the ones that finally will survive in the long run. Amazon continues to be an example of an organisation that repeatedly delivers great customer value, a reason why customers keep visiting Amazon for purchases. 

In spite of what employess feel about Amazon and it's policies, customers are super excited at the value delivery.

My colleagues kept stressing how employee motivation policies and retention strategies along with long term growth projections are equally important as customer delight and value delivery.

Great business performance involves achieving a healthy balance between financial success, customer satisfaction, employee satisfaction, and market share. I still believe customer obsession and service, combined with equally good employee motivation and retention policies are important. 

Literature points to a more detailed picture. Revenue growth through high value delivery and good employee policies make a big difference. Great business performance is typically measured by a variety of key performance indicators (KPIs) that indicate the overall health and success of the organization. 

After giving a search on OpenAI some of the most common KPIs used to evaluate business performance include:

1. Revenue growth: This measures the percentage increase in revenue over time. Consistent growth in revenue is a sign of a healthy, successful business.

2. Profit margin: This measures the percentage of revenue that remains after deducting expenses. A high profit margin is a sign of good financial management and efficiency.

3. Customer satisfaction: This measures the satisfaction levels of customers with the products or services provided by the business. High customer satisfaction is essential for maintaining long-term success.

4. Employee satisfaction: This measures the satisfaction levels of employees with their work and work environment. A happy, motivated workforce is crucial for maintaining productivity and achieving long-term success.

5. Market share: This measures the percentage of the total market that the business controls. A growing market share is a sign of a successful business that is gaining traction in the marketplace.

6. Return on investment (ROI): This measures the return on investment for the business's capital investments. A high ROI indicates that the business is generating significant returns on its investments. - OpenAI

Along with other points value delivery to customers and good employee policies can contribute to remarkable growth of organisations in the long run.

George