Interesting discussion today, over at Infoworld. One of the respondents to a prior posting bemoans, “Is there more to business than revenue, cost, and risk?” I generally enjoy reading the common sense Bob Lewis doles out over there. But, I think his response is a tad off the mark.
Bob says, No, that’s all there is. He further suggests there’s difference between for-profit and non.
I typically state it differently: The only thing that matters is Productivity and Revenue. Everything else that is cited contributes to one, or both, of those two components. Even Risk, is simply a sub-component that you need to manage to the benefit of productivity and revenue.
Don’t quite agree with Bob’s perspective on ‘non’ profits. No such thing. There’s government and non-government (aka private). Non-profit is a taxation distinction. Non-profits are still just as worried about productivity and revenue (aka donations). If it were not the case, you would not see adverts describing the % of your dollar that goes ‘to the cause.’ That a productivity|revenue statement.
For those who may be concerned, I don’t think anyone would describe me as a cold-hearted, uncaring, money-grubbing SOB. Far from it. Rather in the world of business if you’re not sharply focused on those two aspects, productivity and revenue, you cannot be successful in the long run. There are many strategies for doing well, I’ve recently been reminded of Jim Collin’s Good to Great and similar thoughts. They represent ways of delivering on productivity and revenue. Taking care of your people is important…without them you cannot deliver on either aspect.
So, while there’s a lot that goes into delivering productivity and revenue, when you distill it all down sufficiently, that’s all there is.
I’d be curious in your own thoughts…
Is there more to business than revenue, cost, and risk?
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