So what is economic success? Going beyond GDP and profit

Two of the most-used measures of economic success are currently GDP at the national level and profit at the organisational level. GDP is a value-added measure that is broader than profit.

• Read 'Current measures of economic success'

To assess the suitability of measures of economic success, we first need to clarify what we are trying to measure. What does a ‘successful’ economy look like and how do individual entities contribute to this success?

• Read 'What we do we mean by economic success?'

GDP and profit are contested concepts that are subject to ongoing refinement. They are defined and calculated using extensive rules, processes and practices, including the system of national accounts and financial reporting standards.

As material living standards improve and the natural environment increasingly becomes a limiting factor in economic activity, it is time to re-assess current measures in light of our definition of economic success.

Comparing the strengths and weaknesses of national and organisational accounting systems will identify lessons these systems can learn from each other and areas where there may be scope for common improvements.

Alternatives to GDP and profit already exist. Their appropriateness and usefulness can be assessed with reference to our definition of economic success. Should these measures be more widely used and/or are new measures needed?

Throughout the project we will be considering cross-cutting questions such as:

• How do measures of organisational success correspond to, and interact with, national and international measures?
• To what extent should measures depend on an organisation/country’s specific circumstances and objectives?
• How can we summarise the rich detail of underlying experiences, not just overall outcomes?
• When should monetary measurement be used and when are alternative approaches preferable?
• How can we balance short-term and long-term considerations, to ensure success is sustainable?
• How do our measures of economic success affect our thinking, our behaviour and economic outcomes?
• How do measures become embedded in politics and society, and what are the implications for changing measures?
• What determines the credibility of measures and how can measures be made more robust?