What is the measure of success?
If you have a company and want to be successful, it is critical that you regularly monitor a set of metrics that allow you to detect potential problems and know if you are moving in the right direction, so what is the measure of success?
At first glance, it might seem that the only important metric in a business are the benefits. If the profits increase, the business is going well; If they diminish, the business goes bad.
However, in practice it is not so simple.
On the one hand, increasing profits at all costs is often not a good idea. Doing a very aggressive campaign or defrauding your customers can give you quick money, but it certainly has very negative consequences in the long run.
On the other hand, there are activities that do not have a direct or immediate impact on the income statement. How to know then if changing the design of your website has been a good decision?
Finally, there are companies in which profits are secondary. Think of Whatsapp, which barely made any money, or Facebook, which for the first few years had millions of dollars worth of losses.
As you see, it is necessary to go further, and take into account other metrics in addition to income and expenses.
The problem is to know which ones.
In a company there are usually a lot of parameters that can be measured, and if you rely on those who do not have a real impact on the business to make decisions, you will end up making the wrong decisions.
It is as if you had a blood test and started taking statins just because your total cholesterol levels are above 200. It is probably not a good idea, because it is proven that this figure alone does not give us much information about the Risk of cardiovascular disease, and that there are other, much more reliable indicators.
Choosing correctly what “numbers” to monitor and use for decision making, therefore, is key; And to select your own you have to think about what are the objectives of the business and what metrics are directly related to them.
It is not the same to have a startup, where the goal during the first years is usually to grow and gain market share (above generating profits), than having a one-person online business based on a blog, where thousands of visits Do not translate into income is useless.
In my case, to analyze the “general health” of Vivir al Máximo, I look mainly at three numbers:
- Monthly traffic
- Percentage of visitors who become subscribers
- Percentage of subscribers who buy when promoting a particular product
Of course, in order to analyze different individual projects or different areas of the business, I use different metrics, but on a general level I rely on these three.
These parameters give me a good idea of how fast VAM is growing, the income I can expect in the future and what activities I should focus on to increase my income. And if I see that one of these figures suddenly falls or is not evolving as it should, I immediately analyze the why.
“But Adeniyi. I do not have a business … Why the hell do you tell me all this? “
I tell you because, in your own life, you have also chosen –consciously or unconsciously – a set of metrics that guide your decisions and that you continually evaluate to see if everything is right .
Have you ever stopped to think about what are yours?
In what aspects of life do you look to determine if you or someone else is “living well”?
For most people, these parameters are money, material possessions and social status.
Their decisions are always oriented to gain more, to have more and to be more, and to admire those who are famous or who have a house and an expensive car.
However, just as a company’s success depends not only on your profits, your personal success depends not only on your checking account, your possessions and your status.
If it were so simple, the good Robin Williams , who had all that and more, would not have committed suicide.
What parameters should you then use to measure success?
Well, you can only decide that, but let me make some suggestions.
For example, you could measure success based on the number of …
- Dinners with your friends
- Countries visited
- Kisses and hugs given
- Kisses and hugs received
- Days without stress or major concerns
- Days without health problems
- Lives changed for the better
- Completed personal projects
- Read books
- Good conversations held
- Smiles and laughter
- Skills learned
Are not all these things also part of a successful life? A life well lived?
I want you to imagine for a second that you had a magic screen in which you could see 10 metrics in real time to determine if you are living as you would like to live.
Which ones would you choose?
What if, from now on, you focus on improving those 10 metrics every day consciously?
I let you think about it and share, if you like, your conclusions in the comments section