We're making money, so who cares?

I’ve been unfortunate to work with a couple of companies whose leaders cared only about short-term financial results and very little for their employees or customers. These leaders missed two big opportunities: 

1.    To create greater financial success over time by building a sustainable business model.

2.    To create more happiness in the world by treating employees and customers with greater respect and caring.

Case study #1: The leader of a manufacturing facility was held in high regard because his profits were high. However, we discovered that he was “harvesting” the facility to increase short term profits. He allowed the equipment to fall into disrepair, and when this created high turnover, he hired the cheapest employees he could find at all levels of the company. Lack of sound cultural values ran even deeper with complaints of sexual harassment and paid sex parties among the executives. The facility suffered long-term financial losses and the leader was replaced.

Case study #2: The leader of a rapidly growing service company’s espoused “family values” and “loyalty to the team,” but his behavior displayed a blatant disregard for his employees, his family, and his financial fiduciary responsibility. Some of the stronger members of the original leadership team quickly left the company, but nonetheless it grew rapidly and was financially successful for a while. However, when all the moral and financial malfeasance came to light, multiple lawsuits, high turnover, and client dissatisfaction ate away at the profits. The founding leader wound up replaced and divorced. 

What’s important to you as a leader? Do you focus on achieving short-term profits regardless of who gets hurt (“every man for himself”), or do you focus on achieving greater long-term financial profits and greater happiness among your employees and your customers (“we’re all in this together”)?

Don’t be a stranger. (770) 993-1129. tdockery@TheResolveFirm.com