Profits and Prostitution
In my lectures I say that the focus of an organization should not be profits. Profits are like the scoring board of a tennis match. The focus should be on playing well. If you play well and better than the competition – you will win.
For organizations, the focus should be on being healthy and healthier than the competition. The reward for being healthy is profits.
Being a healthy organization means that all four roles of PAEI are fulfilled: The company is satisfying present client needs – (P), efficiently – (A), is proactive to deal with anticipated changes – (E), and (I): is organically interdependent with transparency and functional flow of energy between the parts that comprise the organization that enables collaboration, ( i.e,. no silos).
Satisfying client needs brings revenues and satisfying those needs at a lower cost (i.e. efficiently) than the price clients are willing to pay to satisfy their needs, produces profits in the short run.
Being proactive and organic makes the organization effective and efficient in the long run and that will make it to be profitable in the long run too.
Conclusion: The goal of organizations should be to achieve and maintain their health. If they do, the reward is profits.
So what, one may say?
Well, it reminds me of sex.
Like profit should be the result of healthy organizational relationships, not the purpose of the relationship, sex should be the result of healthy relationships not the purpose of the relationship.
For whom is sex the purpose of the relationship? For prostitutes. It is money that drives their behavior. Relationships are non-existent.
And that brings me to the insight: business people, who focus on profit as a goal rather than the health of the organization, are prostituting themselves.
Dr. Ichak Kalderon Adizes