Understanding why only results matter in Corporates around the world

Corporate life is never easy. It is one full of challenges. It is one that sets apart the winners from the losers. It is one that makes people run to stay where they are. Why are results the only barometer of success at the organizational and individual levels? This article is an attempt to discuss some answers to this question.


Success. Results. Profits. Each of these words are sweet to any CEO, anywhere in the world. Not just in India. We need to understand why only results matter in the Corporate world. The crux of the realities that answer this vital question can be found in a) The need to satisfy all stakeholders b) The need to always cash-rich c) The uncertainty of new technologies d) Employability as a new weapon of success and e) The globalization of businesses and complications thereof.

The need to satisfy all stakeholders

We are now seeing a massive surge in the green movement everywhere in the world and not only in India. The sustained movement to protect mother nature is as important as making profits. An organization cannot exist to only make profits. Yes. It does need to make profits. But most importantly, if any citizen is affected by it, the organization is bound to be accountable. The organization has to pay its Corporate taxes and related taxes. It needs to provide decent wages to its employees; such wages should also have social security in-built in its salary packages. Even while doing all this, it needs to balance the returns to its shareholders and get its act right each time. Yes. The managers and employees are called for to do extremely tough work and hard work, resulting in a breakdown of the traditional work-life balance. The results on each of these counts are important and no organization can satisfy one segment of its shareholders while neglecting the interests and involvement of others. The story of Sterlite, at Tuticorin, is a grim reminder of this fact of Corporate life.

The need to always be cash rich

What is common to the Murugappa group of Chennai, the TVS group, Hero Motor Corp, Bajaj Auto, and Asian Paints, for example? These are companies with almost zero debts or near zero debts. Unless an organization is cash-rich, with huge reserves, it cannot survive the tough times and also keep on enlarging the scope of say, the welfare of its employees. If even one segment of stakeholders is unhappy, the results will not be good. The Anil Ambani group, the Arcelor Mittal group, the Essar Group, and now even the Mukesh Ambani group are in deep trouble. Their managers are facing the worst of times. Hundreds of employees have lost their jobs.

What really happened? Much against the abundance of good wisdom available aplenty by so many Management experts, each of these organizations ventured into areas where they did not possess any core competencies or into businesses with wafer-thin margins. Take, for example, the cellphone industry. Even Kumaramangalam Birla, the CEO of the famous Aditya Birla group, is on record for saying that Idea, which is now having a stake in Vodafone, will simply close down without Government support. Without saying as much, it is clear that the Aditya Birla group has made a blunder by getting into this tricky business, with huge implications in terms of the policy. When Jio the giant came along, the others started bleeding. But Jio is bleeding too. None of the established groups should get into this business. The reason, why the Tatas went in for an out-of-court settlement with Docomo. The Tatas are no more in the cell phone industry. Results are very important. Jio has pulled down the entire Mukesh Ambani group. It remains to be seen what this group will do to just stay alive.

The uncertainty of new technologies

The massive growth of Apple Computers with its stunning range of laptops and mobiles have changed the rules of business in the IT industry. Apple is now the most admired organization in the world, alongside Google. The real success story of Google is its ability to reach millions of customers through its YouTube, Just count the hundreds of entrepreneurs in so many Indian languages who teach us to cook. YouTube has conquered the hearts of millions of Indians. The business model of Google and YouTube is so powerful that it has empowered millions of people in the entire world. Yes, the organization does make profits. But it does so with a human face.

The uncertainties of advanced technology are extremely high. For example, there are now advanced courses in machine learning. India is already one of the major markets for the most advanced information technology services. However, all employees will need to slog it out and just run to just stay where he or she is. This is going to be the new "given". Those who are unable to cope with this new situation will rather sit at home. They will soon become unemployed. Results in terms of profits are now going to matter most. Value-addition per employee will henceforth have new metrics like never before.

The new technologies like Cloud computing will invade our personal lives too. A day will come when so many things may be done by robots. We are now reaching a tipping point, even in India, as far as advanced technologies are concerned.

Employability as a new weapon of success

Since skills are now becoming more obsolete than ever before, employees at all levels need to sharpen their saw every day. Without this, they will simply become unemployable. Learning the nuances of written and spoken English is as important as anything else. It is not enough if one is IT-savvy. He or she needs to have the skills that the industry needs. SAP in Supply Chain Management, for example, has tremendous scope in all port cities, as the complexities of Supply Chain Management will be quite high in such places. IT has brought in a revolution in the way Supply Chain Management is now handled. One needs to be prepared. Mere engineering degrees are not enough. One needs to at least do the Executive MBA on the weekends.

Results, as far as individuals are concerned, will come through the new weapon called employability. Even those who are not articulate in English, but strong in their own mother tongues, for example, have made it big in the TV serial industry. This is the new reality of life. The giant media houses are Corporate houses. They are run on a professional basis like never before.

The globalization of businesses and complications thereof

The globalization of several Indian companies is now far better than ever before. Fifty percent of the revenues of the Aditya Birla group of companies comes from global operations. It is the lowest-cost producer of Aluminium in the world. For the organization, such competitive advantages matter most. For the individual, the professional challenges associated with being part of such action is now more acute than ever before. Yes, one needs to be part of the process and its complications. Learning curves cannot extend to several years. They need to be short and very quick at that. This is the new reality of life. For Results. For-profits.


Some aspects of working for results in an increasingly complex world, have been discussed above. For the individual, the path is clear. Update or perish. For the organization, the path is also clear. Balance all the interests of all shareholders. Never get into debt traps. Doing so is disastrous. Results will be positive only if the Corporate plays all rules the right way. Forever.

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Author: DR.N.V. Srinivasa Rao31 Dec 2019 Member Level: Platinum   Points : 4

All the corporates are working for profit only. It is a business. In any business, the business person wants good results and profits. The performance of the CEO is always measured by the volumes of business he has done, that is the top line and the profits he earned for the company which is the bottom line. There may be many lines between the top line and bottom line. But many people may not bother about these lines. Only a few people may be interested in going through those lines. To achieve this the CEO has to lead the company from the front taking into account all the strengths and weaknesses the company has and also assessing the opportunities and threats that are before the company. He should plan the management keeping these points and mind and see the result will be positive to the company. A good article from the author and he touched all the important points in explaining why corporates look only for the result.

Author: Venkiteswaran30 Apr 2020 Member Level: Gold   Points : 3

Efforts without results will not be understood and appreciated. Any effort without showing results is difficult to be justified and convinced. This attitude has become the model and rule of the present-day corporate world. Hence this causes a lot of stress in the workforce at all levels.

Though training and counsellings are given it is still not enough. The only way is for individuals to orient themselves to this state of affairs and make themselves thoroughly professional by optimum time management and resource management while at work. They should also learn to separate career life and personnel life and enjoy both.

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