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How do we measure effectiveness?

Get out the scales, folding rules and callipers!

I heard that bad businesses are ineffective. So, we shall force them to be effective and transparent to make things better. But by what means do we measure?

The role of trade businesses is to create value, provide the masses with affordable goods and to distribute a part of its revenue to its employees and shareholders. Their effectiveness is measured in profit.

With the rise of ESG criteria it has become apparent that we need to go beyond this one-dimensional measurement.

How do we enable business enterprises to measure effectiveness in other dimensions than profit?

How will that change the definition of effectiveness in business?

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