Profitability Is Not The Purpose Of Your Business

I’m Barry Chandler co-founder and
principal at Storyforge, helping you build a business that matters. Today’s
controversial topic profitability is not the purpose of your business. If
profitability is the purpose of your business
every morning you would come into the office and you’ll tell your team today
we have to make this much money i don’t really care how you make it it’s just
important that we make this amount of money by the end of the day you would
allow your team members to do whatever it takes to get that money and it
wouldn’t matter if you were able to fulfill the services that you sold as
long as you made that money at the end of the day the reality is that
profitability is not the purpose of your organization profitability is the
outcome of having fulfilled your purpose and knowing the difference between the
two is critical to build a business that matters and to attract and inspire the
employees that you want in your organization and to attract and inspire
the customers that are going to help you fulfill your purpose and ultimately have
profitability as an outcome i had a conversation with a young woman in her
30s last year who had spent five years working for one particular organization
and after five years she marched in the door of the ceo’s office and asked him
why why do i do this why do i wake up early every morning when it’s dark drive
to work when it’s dark spend 12 14 hours at my desk I go home
when it’s dark I don’t see my kids growing up why do I do it now without
even looking up from his desk he simply said 20 million dollars that’s why she
said nope that’s not why I do it I quit and she never went back because for her
it wasn’t about profitability it wasn’t about making money she wanted to make
sure that her beliefs are aligned with the beliefs of the organization
she worked for and after five years she realized that it’s a long time to stay
but it took her a while to realize that she was no longer aligned with that
organization she had grown but that organization was still about money money
money very few team members are going to be
inspired by you leading meetings talking about how much money you’ve made for
yourself or for shareholders to inspire employees we have to give them something
bigger to look forward to something bigger to feel like they’re a part of
something bigger that they know they are instrumental in achieving that’s
not revenue alone most people aren’t motivated solely by money
and if we want to attract those employees that are motivated solely by
money then we should keep talking about profitability as being our purpose
because when we attract those kinds of employees what we’ll get are individuals
who will do anything to make the money that you asked them to make they’ll also
be very disengaged and probably leave when you’re no longer making that money
as an organization or if a competing firm offers them a higher salary they’re
at the door why because their only motivation is money and they’re not the
employees that build deep culture build deep meaningful relationships and
ultimately help you build a business that matters because remember that
business that matters must matter for all stakeholders over the long term and
we know from all of our research and all the videos where we’ve shared this
information with you a meaningful business is more profitable over the
long term so bear in mind when you’re crafting conversations for your team
when you’re putting together decks and presentations for clients when you’re
having a conversation about why your company exists if you’re sharing notes to make money alone bear in mind that you’ll be losing a large percentage
of your audience who will not be motivated by profitability alone align
with the purpose not profitability and ultimately profitability will follow
up that purpose

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