Profits are a Reward, Not a Purpose PDF Print E-mail




Jim Clemmer

Bio | Books | Articles | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it


Why do you get out of bed in the morning? Why do you go to work? What do you want to be remembered for when you're gone? Why do you exist? What about your team or organization? Why does it exist? What's its value-add? What's its function? How do you want to be positioned in the market and minds of your customers? What business are you in?

These are all questions of purpose. They deal with the deeper motivations and assumptions underlying and intertwined with your visions, values, goals, and improvement intensity. Purpose is the third component of Focus and Context (the first two are vision and values). It could easily be the first. But arguing whether the picture of your preferred future, principles, or purpose comes first is about as productive as arguing whether air, water, or food is most important to life. They're all vital.

Purpose is also called mission, meaning, reason for being, calling, life theme, niche, strategic intent, value-add, business definition, and the like. As with vision and values, what labels you use don't matter. As long as you, your team, and your organization have clear answers to the above questions, use whatever terms make sense. Just be sure the label you use is clear to everybody and is used consistently.

The Profit Paradox

If the reason for your company's existence is profit, you won't be very profitable. Eventually your company probably won't even exist. The dollar sign isn't a cause. It doesn't stir the soul. Operating margins and return on investment don't excite and inspire. As an ultimate objective on its own, the pursuit of profits is hollow and unsatisfying. Such naked greed is one dimensional. It comes from, and leads to, the naked selfishness of "what's in it for me". Profit seekers are out to serve only themselves. In the Intelligent Enterprise, James Brian Quinn writes, "an overemphasis on profits rather than on those things that achieve profits, with rare exception forces an internal and short-term orientation that is actively destructive to service delivery."

Few people today want to buy from, work for, or partner with a company that's only out for itself. That's like taking a set of elaborate architectural drawings for a huge, luxurious dream home into your team or organization and saying, "If you all work real hard, someday this will be mine." About ten years ago I came across a mixed up manufacturer that had produced a slick little logo and published this mission statement — "In Pursuit of Profits." I haven't heard of that company for a few years now. I don't think they're in business any more.

But if your company isn't profitable and financially strong, it won't exist long enough to serve any other purpose. You need clear financial objectives, goals, and priorities. You can't afford waste and inefficiency. You need strong feedback and measurement systems to eliminate the "nice to do" activities and focus everyone on doing only the "need to do" work that produces profitable results.

That's the paradox to be managed; companies that exist only to produce a profit don't last long. And companies that don't pay attention to profits can't exist to fulfil their long term purpose. Pursuing profits without a higher purpose or pursuing a purpose without profit are equally fatal strategies. These aren't either/or positions to choose between. They're and/or issues to be balanced. But get them in the right order. Many studies of the role and impact of values or ethics on corporate performance have proven that profits follow from worthy and useful purposes. Fulfilling the purpose comes first, then the profits follow. Profits are a reward. The size of our reward depends on the value of the service we've given others.

Developing a personal, team, and organization purpose that's aimed at serving others adds a richer sense of meaning to our lives. It taps into the deep craving we all have to make a difference. We need to feel that the world was in some way a little bit better off for the brief time we passed through it.

Jim Clemmer’s practical leadership books, keynote presentations, workshops, and team retreats have helped hundreds of thousands of people worldwide improve personal, team, and organizational leadership. Visit his web site, http://jimclemmer.com/, for a huge selection of free practical resources including nearly 300 articles, dozens of video clipsteam assessments, leadership newsletter, Improvement Points service, and popular leadership blog. Jim's five international bestselling books include The VIP Strategy, Firing on All Cylinders, Pathways to Performance, Growing the Distance, and The Leader's Digest. His latest book is Moose on the Table: A Novel Approach to Communications @ Work.






Comments
Add New Search
Write comment
Name:
Email:
 
Website:
Title:
UBBCode:
[b] [i] [u] [url] [quote] [code] [img] 
 
 
Please input the anti-spam code that you can read in the image.

3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."

 

Leadership blog

Improvement Points Balance Organizational and Personal Leadership

Here’s a an e-mail that caught me by surprise and made me sit up, take notice, and review what I’ve been sending out to subscribers of our Improvem Read More...

Tone of Voice: It's All in How We're Saying It

Most people want and appreciate a boss or work colleague who is direct and to the point. But it's about the way that's conveyed. We've all found ourselves resisting someone else not because of what th Read More...

Leading by Example: Setting Personal Goals and Priorities

Too many managers seem to operate on a variation of an old Groucho Marx routine; "I've got top priorities. I am going to stick to those priorities. And if you don't like those priorities...I have othe Read More...

Untitled Document

Leadership articles

Reflection and Renewal: Nay, be a Columbus to whole new continents and worlds within you, more...

Honesty and Integrity Build a Foundation of Trust: "To be honest is to be real, genuine, authentic, more...

Innovation and Organizational Learning Pathways and Pitfalls (Part 1): Finding is reserved for the searchers. We don't find what we more..

Personal Goals and Priorities Pathways and Pitfalls (Part One): The chains of habit are too weak to be felt until they are too st more..

Personal Goals and Priorities Pathways and Pitfalls (Part One): Effective executives know that they have to get many things done more...

  • "... writes persuasively about the need for better balance in our lives...urges readers to consider their legacy...offering the chance to relax, reflect and regroup...interweaves anecdotes, quotes, fictional stories and his own musings in a leisurely style..."

    — The Globe & Mail
  • Simultaneously practical and inspirational, Jim Clemmer takes a refreshing approach to leadership and personal growth. Growing the Distance is full of wisdom, anecdotes and pithy advice in an informal, easy-to-read digest format. Great reading for all walks of life."

    — Nancy Semkin, Manager, Leadership
    Development, Royal Bank Financial Group
  • "....participants gave you a 4.5 out of 5 for the overall quality of your presentation. Participants particularly enjoyed your casual and informal presentation style, being in control in a group setting and the manner you were able to connect with the audience..."

    — Musawir Karim, Senior Research Associate and Program Manager, Centre for Management Effectiveness, The Conference Board of Canada