The definition of success for organizations of all types (profit seeking, non-profit, and government) is continuously changing and increasingly complex. From the mid 1940s to the 1970s the limited global competition allowed business leaders in the United States to focus mainly on financial results. The “party” ended sometime around 1980 when Xerox woke up to a situation where the Japanese were selling copiers in the US for what it was costing Xerox to make them. During the 1980s quality became a key success factor and was directly linked to market and ultimately financial success. In the beginning many proposed that high quality was simply too expensive. However we eventually discovered that high quality = reduced cost and increased market share or as Phillip Crosby wrote in a book by the same title - Quality is Free! As the service industry and in particular the knowledge worker industries increased in size and importance they discovered that talented passionate people are also a key to high quality and financial performance. During the 1990s successful organizations became quite good at “connecting the dots” or as FedEx called it - “people, service, profit.” The “bar” is being raised once again to include sustainable results in three key areas - financial, environmental, and societal. For more information on the evolving conversation concerning the environment and societal challenges facing organizations today check out the resources in the learning center.
