Posts Tagged ‘profit’

Greed is Good: Making a Profit Doesn’t Always Mean Making Money

Tuesday, May 12th, 2009

 

Greed is good?

Last fall I had just completed a workshop about the concepts in my book We Don’t Make Widgets when I was approached by one of the participants. She said, “Look, I get where you are going with this: We do have widgets and processes; we have customers; we should try to improve our operations. But” — and I knew exactly what was coming — “you just can’t run government like a business.”

In my most sympathetic voice I said, “I understand your feelings. When you say we can’t run government like a business, which aspect are you are most concerned about?”

Her body then contorted and convulsed, like someone who’s been told they have a bug on them. “Businesses are so … so … greedy,” she said. “All they care about is profit.”

“Exactly,” I replied. “Now imagine if we were as greedy about profit as the private sector. How great would that be?”

The look on her face said what I’ve heard a thousand times: “We’re not here to make a profit.” Except that we are. It’s just not measured in dollars.

In the private sector, the performance outcome is obvious — money. We in the public sector are here to achieve a profit also, but it’s shown in the form of results. As I contend in my book, the purpose of any organization is to maximize return to its investors by building better widgets for customers in more efficient factories. Investors? ROI? Customers? Have I lost you? Let’s step back.

(more…)