Managing Profitability Requires Right Vision
The pressure and focus on bottom lines for a manager is
tremendous. The manager spends the entire day in number
crunching and taking decisions purely on the basis of optimum
profitability. While this may seem quite good, the manager may
actually be losing money for the organization by losing focus on
a broader and more valuable aspect of vision and leadership.
World class organizations and managements are those that while
being profitable have also a great vision. Everyone is very
clear about the direction in which the organizations is headed
and willingly contribute towards achievement of those goals and
visions. The sharing of vision is so effective that most of the
employees and more so the management believes that it is their
vision and not the organizations.
None of these great organizations have bottom line as a vision
or mission statement. The vision is something larger and so
powerful that they result ultimately in healthy bottom lines.
A vision statement like 'To Be The Best'. Let's Do It'. 'We Are
in the Happiness Business'. None of these vision statements
reflects profitability even remotely. If anything they do not
even talk about their business. The vision talks about a
philosophy. In fact they are so compelling and bold that they
may actually be resulting in huge investments or short term
losses to implement. However the powerful vision leads people to
think their work is worthwhile. Millions of ordinary
organizations with bottom line focus is not able to enjoy the
kind of profitability that an organization with a compelling
vision does.
Visioning requires leadership not management. Visions are also
not for the squeamish and the weak. Visions are for the bold and
the futuristic. Great visions entail a great leadership.
The world and the markets are drawn to great visions. It is a
kind of force that generates immense attention and positive
recognition from the markets, consumers and stakeholders. A
Great vision unleashes a positive force, passion and energy
shaping the organization into a force to reckon with.
The result is a great leadership, inspired managements and
healthy bottom lines.