In our last article we established a business should be designed to satisfy the personal needs and wants of individuals working in the business. They want money. They want enjoyment. They want security. In order to provide these goals a business must be built specifically to provide them. If the business does not provide money, enjoyment and security to the individuals associated with the business it will more than likely not succeed.
A business must establish its goals to make certain that it will be able to provide money, enjoyment and security for all associated with that business.
The business goal for providing money:
Management should have a clear
understanding (and they more then likely do) that those working in the business
have a need and desire for money. Also that need and desire will grow on a
regular basis. As one gets older their level of aspirations will rise. Therefore
it is essential that the business expand and grow its profitability so that
those involved with the business will have an opportunity to earn money and
meet their ever expanding aspirations.
Goal number 1: Provide sufficient income to enhance the standard of
living of all those who are associated with the business.
Please note the goal is not
that everybody should have the same standard of living. The goal is that
the company should make enough income so that the people within the
organization will be compensated fairly along with some level of increases on a
regular basis.
Is this a goal that will last forever?...You bet.
Is this a goal that will last forever?...You bet.
The business goal for providing
enjoyment:
As you know the term enjoyment can
mean many different things, During the course of my travels I've spoken
to many people about what the enjoyment is they get from work (contrary to
popular belief most people do enjoy their work). What makes people feel good I
asked: They want to know they are contributing to a greater good. They want to
know that there's value in what they do. They want to feel good and proud of
the product and or services they are providing.
Goal number 2: Provide the highest quality product and/or service
commensurate with the marketplace.
It is very important that the
quality of products and/or service be commensurate with the marketplace a
business serves. You wouldn't want to provide a Neiman Marcus product in a
Target Store. Both have good quality products and service for the markets they
serve. But each market is substantially different.
Provide a high quality product and/or
service and the people within your organization will feel good about the
organization and themselves. That’s what they enjoy.
Is this a goal that will last
forever?...Sure.
The business goal for providing security:
The personal goal of security means different things to different people. Clearly younger people will have a different view of security then older people. Also whether one works for a company or owns the company will have an impact on how an individual views security. For example employees may believe that security is having a lifelong position, a pension plan or the hope of future ownership
The owners may want exactly what the employees. However the owners may also be looking at the potential of a sale or some kind of an event where they can cash in on the value of the business.
The business goal for providing security:
The personal goal of security means different things to different people. Clearly younger people will have a different view of security then older people. Also whether one works for a company or owns the company will have an impact on how an individual views security. For example employees may believe that security is having a lifelong position, a pension plan or the hope of future ownership
The owners may want exactly what the employees. However the owners may also be looking at the potential of a sale or some kind of an event where they can cash in on the value of the business.
It is extremely important that owners
of the business take a hard look at whether they are creating value or not. Wouldn't it be awful to be working 30 to 40
years in a business to find out that you have built a business that has no
value. It just fades away when you do.
Goal number 3: Build a business that will last forever.
When a business is built to last forever, it will attract better employees, build value for the owners and provide some level of security to its people.
Goal number 3: Build a business that will last forever.
When a business is built to last forever, it will attract better employees, build value for the owners and provide some level of security to its people.
The business must be built to last
beyond the lives of its owners.
Is this a goal that will last
forever?...Yep.
A final thought:
These three goals have no priority
as to which one takes precedence. Economic conditions existing at the time of
decision-making will determine which of the goals will take precedence over the
others. For example in the current economic condition of the nation which goal
would you favor over the others?
The goals will conflict with each
other. For example a company may wish to buy new equipment which will help
improve existing products. The purchase of this equipment in the short run may
conflict with the goal of providing “sufficient income”.
Decision-making for management
becomes clearer once the goals of the business have been established. It’s
almost like a decision making matrix. Management must decide, at the time a
decision is to be made, what the impact of that decision will be on the three
goals of the company. Management will then decide which of the three goals will
take precedence. Of course we're not talking about every day decisions, but
we're talking about substantial decisions that will impact the goals of the
company.
Next time we’ll begin
a discussion of the strategies for
achieving the company’s goals.