by Joe on March 27, 2012
Many of us spent 4 years at an undergraduate business school learning the question that we boil business down to is: “What will best maximize shareholder return?“ But over time, I’ve realized that it is a question that fails to inspire and move me, and I’m guessing others, to action. So I’ve spent the last few years exploring how to approach business outside of the uninspiring shareholder-maximization mentality. After years of searching, I stumbled across this:
“Instead of asking…Which choice will maximize my ROI? We ask instead, Given the core competencies of my organization and the assets under it’s control, how can I best direct the organization to serve? Which products or services could we produce that would best enable my community to flourish?”
At first take, I asked how you can ignore profit? Well, you cant. The argument here is that profit is what helps the business attract sufficient capital to continue growing and enabling greater and greater levels of community flourishing and service.
These two compelling questions are inspiring my actions on a daily basis. How would your world change if you focused on these two questions in lieu of maximizing ROI?