The questionable quote of the week
"The purpose of business is to make a profit...right?"
A dear friend, a nuclear scientist, while working for a software company helped me understand a few years back that what is simple and intuitive is not always right.
We live in an age of sound bites and a pop culture that reinforces that our purpose individually or as business is fame and fortune. This entitled focus is cancerous and is lethal to long term success individually and in organizations. Last week I spent some time with a super fast growing organization where the CEO's number one metric WAS NOT profitability.
Last week I participated in an intense certification course to become an Infusionsoft Certified Consultant at Infusionsoft's headquarters in Phoenix, Arizona. While the discipline, the seriousness of their quality control in who they certify was extremely impressive (not everyone passes and the investment in the course is quite expensive), the coolest take away was hearing an employee talk about how their CEO, Clate Mask, his number one performance metric is NPS. NPS stands for Net Promoter Score. This in a nutshell is the degree in which customers are promoting (or not) the companys' products and services to others. Effectively a net roll-up of positive and negative word of mouth marketing. I heard no mention of profit as a point of focus of their business during my entire visit. Click here if you want to learn more how NPS might work in your org.
In short profit is an outcome. It goes without saying that if shareholders and employees don't realize an attractive profit and are not genuinely valued, in the long run, the organization will lose the intellectual and passionate energy to produce truly innovative products and services that will maintain a high NPS score.
Another takeaway is that when I chose Infusionsoft, while I initially thought I chose their software among a host of alternatives, I now realize that my choice was more about selecting Infusionsoft as a company and a culture. The software is simply an outcome of their culture. A culture that is sincere, genuine, and has a diehard commitment and vision to bring radical new competitive advantage via software to exclusively small business. A culture that only hires individuals with the same sincere passions. As I walked their halls, it was openly evident that the purpose of their business is their culture and vision. This drives their strategy, which therein drives the quality of the product they produce.
Per the photos below, the growth momentum they are now realizing from their principled focus and incredible amount of hard work is a great American success story we can all learn from individually and professionally.
Let's pray that the venture capital that is involved and watching is as principled as the founders who are as equally committed to their clients profitability as their own.
Giancarlo Newsome is the founder of G-Force Accelerated Marketing.