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Big business is not only about making money

One of the paradoxes of business is that the most profitable companies are not those that are most profit-focused. While noting the impact on the bottom line, commentators tend to assume the performance jolt comes from hard-to-pin-down qualities such as inspiration, leadership or the motivational effect of working for a good cause.

Yet there is an eminently down-to-earth reason why purpose matters to every organisation — if it does not have a definable purpose, it cannot measure progress towards it.

In the abstract, measures are arbitrary and unhelpful. Purpose dictates appropriate measures and measures give manageability, the capacity to learn and improve.

  1. A positive approach to business and leadership doesn't just benefit employees--it benefits organizations as well. Some workers of Pizza Hut are mentally handicapped or physically disabled.
  2. Owing to the climate changes, more people are calling for the protection of the environment. It is often complained that equal opportunities are not granted to every citizen in society because the disabled people are often deprived of chances to work and earn a living on their own, thus, increasing the welfare burden on the government and lowering the self-esteem of the disabled.
  3. Counting the chocolate she sells, because each chocolate is sourced and produced in a way that supports farmers and the environment.
  4. Uptil now, it has provided sanctuary for over 1,000 families.

The truth is simple and profound, but not that obvious. Because satisfied customers are the only source of long-term success, measures need to be related to purpose as defined from a customer point of view.

Big Business is not about making money

When they are, employees can see how well they are doing and how they might do better. The Toyota Production System TPSwhose purpose is to deliver an individually specified car to a customer in the shortest possible time, may be the best-known example of such a well-honed, feedback-driven system.

What happens in most organisations that have no overriding purpose other than profit?

In a subtle alchemical shift, the metrics fill the vacuum, muscling out any wider purpose with the imperative of hitting the numbers. This transposition of ends and means is often disastrous because methods, now geared to meeting the metric, are detached from customer purpose — so banks sell payment protection insurance to people who do not need it, or VW managers manipulate emissions readings to meet targets.

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Look no further for the reason why companies lose their customer focus. Because of the umbilical link with the way the organisation operates, purpose can be even more powerful than this suggests.

  • Besides promoting sports in the territory, the event also helps raise fund for the development of athletics;
  • Those who focus obsessively on their own happiness are usually narcissists — and end up miserable.

Purpose should not be complicated or airy-fairy — but nor is it always as straightforward as the TPS. When some UK local authorities considered the purpose of local services, they concluded that they were there to help citizens live well, in charge of their own lives. After all, people leading good lives make for happier, more functional communities that make less call on stretched public services.

  • We face staggering global issues like natural resource depletion, poverty, political instability, and ongoing conflict and pollution, which threaten the world and all of humanity;
  • The best thing about happy customers is word of mouth;
  • It is often complained that equal opportunities are not granted to every citizen in society because the disabled people are often deprived of chances to work and earn a living on their own, thus, increasing the welfare burden on the government and lowering the self-esteem of the disabled.

That required new measures, which quickly established, for example, that most resources were consumed by a few chaotic families using multiple services. This led to a new way of working, in which multidisciplinary teams visit problem families to understand their lives in context. The result was greater welfare at lower overall cost. On its own, purpose is nothing more than an aspiration. It is its sidekicks — measures and methods — that make purpose tangible and keep managers on the straight and narrow.

But it cuts two ways.

  • Purpose dictates appropriate measures and measures give manageability, the capacity to learn and improve;
  • That required new measures, which quickly established, for example, that most resources were consumed by a few chaotic families using multiple services.

Last decade, Toyota subordinated its customer purpose to a growth push in an attempt to overtake GM in size. Overexpansion led to quality problems and some spectacular vehicle recalls. Akio Toyodagrandson of the founder, claims the lesson has been learned, but the jury is still out. Purpose is an unforgiving taskmaster: This article has been amended to reflect that John Seddon is a visiting professor at Hull University and managing director of Vanguard Consulting.

  1. Students recognize that negotiating is a creative process in which both parties explore and achieve better outcomes by working together to share, exchange, and build new resources. It is undeniable that businesses have to earn money so as to sustain their operations and reinvest in the businesses.
  2. Owing to the climate changes, more people are calling for the protection of the environment. They hold a campaign called 'Mission Green Thumb' to provide employment opportunities for the disabled.
  3. Shareholders, Employees, Customers, etc. It is not enough for businesses to depend on the government to set rules that will force them to contribute to society, as is the case in poor countries.