Unknown fact to measure company success by Yakub Khan

Unknown fact to measure company success

    This is vital for any company to measure their success based upon their sales growth, sales performances, projects delivered and the targets achieved etc. But the fact companies are forgetting is what’s the key to their success is and also how they are measuring it. There are 2 sides of the coin, what matter is which side of the coin you are holding it.

    One side of the coin we saw here to say on the success rate is only sales or delivery functions. The real deep impact that most of the companies forget to measure is the number of decisions they are taking which is defined as other side of coin.

    The companies are forgetting to measure the impact of their decisions on the growth rate of the company. We do measure growth rates based upon the sales achieved and decreasing the cost factors and new inventions in the businesses, doing M&A etc.

    When the company measures the impacts of their decisions and the growth rate, for sure they will come to the conclusion that how many key decisions they should make in order to keep growing the success rate of company and also along with that success rate of each department.

    Talking about the department wise, the success rate leads to equal role of all departments that combining the success rate or growth rates of the company.  Upon that the key decisions are from the top persons of the company.

    Example of measuring the company growth vs success rate under statistical format

    Explanation

   The factors are divided into 4 scenarios based upon the Years, Time (Month), Key Decisions taken during the time, Growth rate of the company.

    Below is the graphical view

    We can clearly assume the impacts of the decisions upon growth rate of the company based upon data we have divided statistically.

     As we measured, saw the differences and impacts defining the relationship between Decisions vs Company Growth Rate vs Time factors. In the same way we can measure the success rate vs growth rate vs time for the respective departments and also to see the impacts on the business as a whole.

     The quantitative, statistical measurement of success is the key to measure hidden success for company, and also it is very vital.

Example of Steve Jobs and his decisions making capacity vs time factor is the best sample.

Theory of Bricks Vs Company Stocks by Yakub Khan

     

    The stock of a company is equal to the structure of a home with bricks. To call it a home / company, it needs to have a follow structure as a sample.

     The objective of this theory is to express that the company stocks should not be over valued by splitting the number of stocks to lower numbers, keep the value reasonable with more number of stocks which creates opportunities to the company itself in future.

     In most of the companies the stock is based upon the Earning Per Share value / Price Earning Ratio’s and so on.

     The major objective of this sample to bring the structure of a company in such a way that the companies should not overvalued its stock and it’s better to be in a reasonable price. Why it’s vital to split the company stocks at a reasonable measures, to explain this I am bring the theory of “BRICKS & COMPANY STOCKS”.

     To make a home we have to  build all necessary structure as below, in the same way to build a stock of the company we have to prepare a necessary structure at a reasonable way.

     Once we have our home ready and it’s a time to prepare an entrance for the home.

     And so the stock of a company open’s the door with its necessary entrance for the investor to enter into the company. I.e. The gate is known as a space to enter or the amount of space taken by the investor to enter into the home / company.

     It’s really vital for any company to split the stocks at a reasonable multiple factors that should be easy for a company to open the doors as the space they required in the form of investment.

     Imagine instead of making the wall with so many bricks if I prepare the wall of only 2 bricks, it’s very  risky to fail, which opens a huge gap / huge space for anybody enter into the home. Which says that its quiet safe to keep or split the stocks in a reasonable numbers same like number of bricks to make easy for yourself to let the air / entrance reasonable.

     The bigger picture of this theory is that “ The smaller the wall with more number of bricks, safer the wall to create the required space of door / window / investor to come in” rather than making the money with huge value of share with low number of shares i.e same in the form of 2 bricks wall instead of more bricks.

       by Yakub Khan, Associate Consultant - Financial Advisor of HCL Consulting London