Why Results Matter In Business

It’s a well-founded fact that successful companies deliver positive financial results. This may be measured in different ways – growth, profit, shareholder value – but the bottom line is that positive results are delivered.

If the financial results are negative for very long, then it’s only a matter of time before the company disappears into oblivion.

Of course, start-up companies require time to achieve positive results. So there’s a “grace period” permitted by investors. But the basic elements for success must be present from the beginning or they face the same tragic ending as any other company.

A classic case was Pets.com – a short-lived online business that sold pet accessories and supplies direct to consumers. Launched in 1998, Pets.com quickly garnered attention – and significant funding – from many influential investors, including Amazon. But within 268 days from the initial IPO (Initial Public Offering) Pets.com closed its doors.

Probably the most famous part of the business was the sock puppet, the Pets.com marketing mascot. By all accounts, their advertising campaign was hugely successful.

Airing its first national commercial in the January 2000 Super Bowl, the ad was ranked #1 by USA Today’s Ad Meter. It also had the highest recall of any ad that ran during that Super Bowl. Even the Pets.com website garnered several advertising awards.

The problem was that Pets.com could not – and likely would not ever – deliver positive financial results. Why? Nearly every sale lost money! No amount of volume was going to fix this problem.

Even before the cost of advertising, Pets.com was selling merchandise for one-third the price it paid to obtain the products. In addition, the company even offered free shipping, hoping to build a large customer base quickly. (Just imagine the shipping costs for heavy bags of cat litter and cans of pet food!)

Bottom Line: delivering positive results is like oxygen for the business body. Without it, a business will die.

Not surprisingly, even large established companies can struggle with delivering consistent positive results. If negative results persist, it often leads to a merger or acquisition.

For example, in 2013:

• U.S Airways merged with American Airlines.
• OfficeMax merged with Office Depot.
• Vanguard Health Systems being was acquired by Tenet Healthcare.
• Metro PCS Communications was acquired by T-Mobile.

So a common theme among the most successful companies is a focus on results. This is why it’s often stated as a core value.

Defining the Value of Results

Here’s a sampling of how 10 large companies define “Results” as a core value:

• Ally Financial – Deliver Results: We are passionate about winning – for our customers, our teams and our company. Success is measured by both the outcome and the path to achieve it
• Cummins – Delivering Superior Results: Exceed expectations, consistently.
• EMC – Results-Driven / Accountability: Complete what you say you are going to do; no excuses.
• Honeywell – Get Results: Requires consistently meeting commitments to the business and to help others. Quickly translate business requirements into actions by defining “who does what by when” to ensure plans are executed.
• International Paper – We are passionately focused on business results and customer success.
• Kohl’s – Very Results-Oriented: You maximize your strengths to drive results. You take ownership and deliver measurable success.
• MassMutual – Achieve Results: Focus on winning; consistently exceed expectations; beat the competition.
• Monsanto – Act as Owners to Achieve Results: We will create clarity of direction, roles, and accountability; build strong relationships with our customers and external partners; make wise decisions; steward our company resources; and take responsibility for achieving agreed-upon results.
• National Oilwell Varco – Performance Driven Results: We create our future through our choices and actions today.
• Tenneco – Results Oriented: Taking authority; driving to achieve and meet commitments.

 

How does your organization define results?