Measure of success

February 11, 2025 l Manila Bulletin

I cringe whenever I encounter someone who claims to have “succeeded” at accomplishing something, knowing that this was achieved only at a tremendous cost or expense. This is what happens when a group goes to a restaurant, and an arrogant, grandstanding individual takes it upon themselves to order the best and most expensive dishes on the menu, with such variety and volume that it is too much for a normal meal. At the end of the meal, the standout individual who did the ordering claims to have had a successful feast! Perhaps I could agree with this assertion if said individual asks for the bill and pays for it themselves. Alas, I have had the misfortune of experiencing situations where this person passes the bill to another individual or to the group!

It is appalling when people who manage our homeowners’ association or country club create and execute grand plans for capital expenditures, activities, and expenses supposedly for “the benefit” and “pleasure” of their members, all without fiscal restraint or responsibility, proceeding with such wanton spending. Spending money is easy for these irresponsible and incompetent individuals, especially when it’s not their own. Of course, in these situations, members are not consulted about how their funds are being utilized; they receive the bill for special assessments and increases in their monthly dues!

How members can tolerate this is beyond me. Perhaps they didn’t realize this would occur, but now that it’s become a reality, if members continue voting for the same people in power, they deserve what they get. Imagine entering a restaurant, selecting your menu, and knowing what and how much you ordered. Then, all of a sudden, many other dishes appear that you didn’t request. It doesn’t matter whether you liked the additional dishes or could afford to pay for them; you still receive the bill anyway, and you have to pay for it! This restaurant is akin to your homeowners’ association or country club, where decisions are made regarding what you receive—you may not get what you want, but you will undoubtedly have to pay for it!

The true measure of success takes into account several factors, such as cost, resource allocation, comparative performance, and time. Generating revenue or saving on expenses means the cost must be less than the potential benefit. Even when profit or savings isn’t the primary objective, a resource allocation analysis must be conducted to determine which projects should take priority. A facility meant for just five members shouldn’t be prioritized the same way as one that will serve 100 members!

Comparative performance or cost is another aspect to monitor. If your industry grew by 30 percent, but your company only grew by 20 percent, should that be deemed a success? Perhaps not. Similarly, if a hamburger of the same size and quality costs double what another does just across the street, you might question that. However, if that hamburger is double the size with better quality and taste, I don’t think you’ll hear too many complaints. In construction projects, completing the project according to proper design specifications and standards isn’t enough; the cost must be reasonable, and the completion time must also be considered. Of course, the project that comes in at a lower cost and is finished quickly while meeting the same standards and specifications is the true success!

The illusion of success or accomplishment is perpetuated by charlatans who take your money and turn it into a mirage.

***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email georgechuaph@yahoo.com or gschua@up.edu.ph. Photo is from Pinterest.

 

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Financial Executives Institute of the Philippines

Roberto de Ocampo Center for Financial Excellence,
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