PROFIT

"Prosperity is only an instrument to be used, not a deity to be worshipped."

— Calvin Coolidge, Thirtieth American President

If the reason for a company's existence is just profit, they won't be very profitable. Eventually the company probably won't even exist. The dollar sign isn't a cause. It doesn't stir the soul. Operating margins and returns on investment don't excite and inspire. As an ultimate objective on its own, the pursuit of profits is hollow and unsatisfying.

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 all mine." A few years ago we came across a mixed up manufacturer that had produced a slick little logo and published this mission statement — "In Pursuit of Profits." That company is no longer with us.

However, if your company isn't profitable and financially strong, it won't exist long enough to serve any other purpose. You will need clear financial objectives, goals, and priorities to sustain your company and fulfill your purpose. You can't afford to waste time and energy doing the "nice to do" activities. Instead you and your team need to focus on doing 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 fulfill 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 rather they're and/or issues to be balanced. The key to success is to get them in the right order. Many value studies have repeatedly shown that profits follow from worthy and useful purposes.

Profits are a reward for your dedications to fulfilling your purpose. The size of your reward depends on the value of the service you've given others.