Now Reading | What Happens When Leaders Only Care About Money? (Forbes)
http://www.forbes.com/sites/erikaandersen/2013/12/18/is-greed-good-and-does-it-work-in-business/
I like the balance and perspective offered by this article. Forbes provides a short list of scenarios for “Yes, but it depends” and I might add “Maybe–but it depends”:
Yes, if all that’s required is short-term profit.
Yes, if the product or service is a commodity.
Yes, if the employee base shares the CEO’s philosophy.
Yes, if the CEO creates a layer of people-oriented leaders.
I don’t believe that caring only about money works, especially with a creative-driven business model. I remember sitting across from a colleague once who asked me Why do you care so much for your clients? Can’t you care a little less? It’s easier and it’s less complicated and it’s less expensive sometimes–I get that. I do. But the answer is a resounding no. Here’s what the article goes on to say:
If a leader needs to build a sustainably growing and profitable enterprise in an industry that requires a high degree of innovation or creativity and/or must provide excellent customer service – then the money-only approach will not work. I’ve seen profit-only leaders fail time and time again under such circumstances.
And the core reason – from my observation – is that delivering innovation, creativity or extraordinary customer service demands talented, hardworking employees who are loyal and motivated, and who are supported to do their best. And in this day and age, such employees are in high demand. As soon as they realize that a leader, or a company, cares about them only as a means to the end of raking in the dough – and will therefore consistently look for ways to give them as little of that dough as possible – their resumes will be on the street.
If you, as a leader, need to build a sustainably profitable business that relies upon innovation and/or great customer service to succeed, then I’d suggest the following approach: hire the best people you can find, support their development and their creativity, and establish an environment that both demands and rewards great results. I predict you’ll make lots of money – all without having to avoid telling your mom how you run your business.
