To Profit or Not to Profit

Rob Campbell comments to a financial analysists conference were reported in Stuff

He made the very valid point that “Business is not a machine whose purpose is to spit out money to shareholders in a reliable stream forever“.

I saw this article on LinkedIn and thought I’d add my views…

Business is just a resource. It’s up to us how we use that resource, and how we use the outcomes of that resource. Making money for shareholders isn’t wrong, in and of itself. It can even be seen as an impactful purpose, depending how the profits are used. We need to be more open and more strategic around ‘purpose’. Imagine if Amazon was owned by a charity that used the profits as a resource to help eliminate food poverty around the globe. In this case, Amazon’s purpose to make a profit is obviously a good thing.

Of course just because profit could be a ‘good’ purpose, that doesn’t have to mean profit at all cost. It’s just why that organisation is operating that particular business. Like all organisations (not just businesses), it should be values driven, seek to support it’s communities and basically operate as a good citizen.

Rob Campbell is obviously talking about large corporates but we also need to remember that the NZ economy is made up of a significant number of SMEs. Operating a business with the intent to support your family is still a purpose.

I don’t believe that making a profit is where we need to have the conversations.

The two key focus points should be how we make that profit and then how we use that profit

What really matters is how we use business to do good!

Positive change is the ‘why’ for your thoughts

Thought leaders must generate conversations.

Conversations must generate action.

Actions must generate positive change

This seems simple but whether it’s in business, social services or even politics, it provides a basic rule of thumb for what “thought leaders” should be striving for. Ideas are great, action has to follow but positive change is what it’s really all about.

Be a storyteller

I recently attended a social media/digital marketing seminar for NFP and social enterprise. Tyler Riewer came out with the great question while talking about telling stories.

Are storytellers really just sales people, and if so, is this a bad thing?

I often think that many purposeful organisations, especially NFPs, see ‘selling’ as a dirty word. It’s so capitalist, profit driven, corporate etc etc.

The reality is that we should be selling our purpose. If it really is your authentic mission, you will be selling it and not even know it. Fundamentally, if we don’t want to sell our purpose, do we really believe in it?

It’s up to us to tell the stories that sell our purpose.

Help…

If we look at LinkedIn and other business environments, we’re all there putting out advice or ‘wise words’. Congratulating ourselves, our teams or our contacts on some success.

When was the last time you saw a post asking for help, advice or support? I’m not talking about the odd post about which name or graphic looks the best. I’m talking about situations where we genuinely don’t know what to do and we need help to solve an issue.

Are we still asking for help, just not in a way that everyone sees we’re seeking it? Or are we basically stubborn and despite the advice we give, we’re still not good at asking for it ourselves?

Obviously, the reality is all of the above.

Asking for help in a non-public way makes sense. What really concerns me though are cases where people don’t realise that they need help, or do realise but are afraid to ask (or worse still, don’t think that they are worthy of others help).

Of course the next logical question is… are we asking the right people to help us?

A bit of cynicism is fine but don’t dismiss the awesome reality

Someone commented on LinkedIn that purpose at work is just a con – a way that profit hunger managers and owners can get their staff more engaged, simply so they can earn even more profit.

Owning a business called The Optimistic Cynic, I totally understand the point they’re trying to make here.

There will be companies that use ‘purpose’ simply as a method to engage staff or for their marketing messaging. The same way they have used the environmental message. So yes, people need to be aware of this.

There is a big BUT here.

I like to believe that most people (shareholders, directors and managers are people as well) genuinely want to do good. Historically business was never seen as a tool for doing that but this view is definitely changing. We now know that you can have a purpose and still make a profit. Normal business strategies can be tweaked to reduce harm or to do good, without any extra costs. Staff will definitely be more engaged if the organisation has a purpose other than making money.

The key issue is, like most things, how genuine it all is (I would have used the word authentic, but wow is that word over used or what?).

If a company purports to be purposeful but doesn’t follow through with it, people will know. Staff will obviously be the first to work it out and that change in perspective will filter through to customers.  With the internet, people also find these things out for themselves and ultimately anything the find for themselves will greatly outweigh anything a company may try telling them, regardless of their marketing spend.

Will your staff leave the business if you don’t have a genuine purpose? Probably not, especially if they have a family to provide for. Will all your customers suddenly disappear to the competition? Again, probably not – unless the competition are purpose driven and offer the same value.

On the flip side, will your staff be more engaged, enjoy coming to work and share that passion with your customers if you are a purposeful organisation? – absolutely.

Retention and recruitment easier within purposeful organisations? – oh yes indeed.

If more organisations are becoming purposeful, is it likely that your customers and suppliers will be in that group? – it would be unusual if they’re not.

Yes some companies will ‘purpose-wash’ but that shouldn’t stop you going down this path. It’s better for your staff, your customers, your communities and you!

Have a genuine purpose is easy and is simply the right thing to do.

Handsome young man feeling suspicious while isolated on white

Do something

I have just attended a Waster Workshop hosted by Mainstream Green and the Cambridge Chamber of Commerce – enabled by the WDC.

I’ve been a bit flat lately (the concussion didn’t help but that’s another story) but you simply can’t help but be inspired by Nicola Turner talking so passionately and practically about reducing waste.

What really struck me, in addition to all of the sage advice from Nicky, was how easy it is to use the same concepts and energy to support people and communities as well as reducing waste.

If we want a great world to live in, we need to support people, community and the environment. We need all parts to be healthy and sustainable.

Nicky is fantastic and all organisations need to listen to people like her – it’s easy to do better and fundamentally I believe we all want that.

Waste recycle management, energy saving awareness, ecological sustainability and tree planting concept: Elements of this image furnished by NASA

A golden silence

Yes I’ve been slack.

Have the thoughts dried up – absolutely not, but they’re not being tapped into the computer. They’re just drifting around in the space between my ears.

The issue is simple, blogging isn’t enough. Wanting to see change is vastly different to making change happen.

I need to do more. In fact I need to do much more!

So while I’m thinking about what I can do, I’ll also take the time to completely up-date the website.

This pause is really a just golden silence.