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Measuring the Success of an Organisation

Organisations only exist to achieve something that individuals can't achieve alone. This involves coordinated, cooperative effort. In 1938, Chester Barnard, author of The Functions of the Executive, wrote "the only measure of a cooperative system is its capacity to survive". Despite its vintage, that seems like a valuable insight at the moment with the demise of so many household names over the last decade and many more to come during the current economic turmoil. But how to measure an organisation's capacity to survive? Is it the age of the organisation? But that only measures historical capability to survive, not necessarily the current and future capacity. Is it a measure of vitality - like a doctor measuring vital signs: heart rate, blood pressure, blood composition, immune system, etc.? Measuring liquidity, cashflow, and any number of financial ratios are useful metrics. But, continuing the medical analogy, measuring vital signs helps you know if you're out

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