The Language of Results

In the end, only corporately-recognized results matter.

The ultimate goal of every margin initiative is the achievement of corporately-recognized value. Operating outside the boundaries of traditional business practice, these projects must mature until they are incorporated into the corporate structure to which they are affiliated if they are to accomplish anything. Value creation is only achieved by re-integrating with the organization.

Until that happens, initiatives in the margin often produce non-standard results. Unrecognized in corporate performance measurement systems, these results may be vital to the success of the initiative but account for little within the organization as a whole. It is only when the initiative begins to produce officially accepted results that margin activities receive recognition and the margin leader is rewarded.

The margin leader's business theories may be sound, his strategy excellent, his business plans exceptional, and his execution of them brilliant, but he will not have achieved anything until he produces results the corporation accepts - whatever that may be. This is true regardless of the value, wisdom, or sanity of the corporate strategy and performance standards. They may be industry best practice or completely arcane, but the margin leader - as part of that system - will be measured by that system. Unless he seeks only self gratification or some form of external recognition, his performance will ultimately be judged by his ability to produce corporately-recognized results.

With this in mind, margin leaders should align their strategies to ultimately achieve corporate priorities. They should also seek out organizations whose corporate priorities align with sound business practices. The greater the gap between corporately-recognized performance measures and typical early-stage performance results, the greater the challenge in building successful margin initiatives.