Fundamentals of Level Three Leadership

141. Tangible Financial Results

Concept

Most executives seem to behave the core VABE of maximizing profits. In fact, most business schools teach the importance of the core capitalist principle of maximizing profits. This, people say, is why investors give their capital to the corporation—to maximize their returns on their investments. Even when I ask “What is the purpose of your company?” the most common answer is, “Are you nuts? To maximize profits of course.” And usually, they mean maximizing short-term profits that raise the share price, delight their investors, and guarantee rewards from their performance contracts.

As we near the end of our time together (on first reading anyway), I invite you to consider the proposition that maximizing ...