Chase problems, not profits | Josh Bersin #BTPlus

Key Concepts:

• Problem-solving as the primary purpose of private companies.
• Profit as a consequence, not the primary driver.
• The danger of prioritizing growth and profit over the original problem.
• Reconnecting with the core purpose to regain clarity.
• Financial performance as an outcome of fulfilling a purpose.

Main Purpose of Private Companies: Problem Solving

The core argument presented is that private companies exist fundamentally to solve problems, not merely to generate profit. The speaker emphasizes that while financial gain is a natural outcome of successful problem-solving, it should not be the primary motivation. Examples provided include the desire for faster transportation (leading to car manufacturing) and the pursuit of enhanced aesthetics (driving the makeup industry). These examples illustrate how companies initially emerge to address specific needs or desires.

The Pitfalls of Prioritizing Profit Over Purpose

The speaker warns against the common tendency for companies to prioritize growth and profit maximization over their original problem-solving purpose. This shift, driven by the pursuit of shareholder value and expansion, can lead companies astray. When the focus shifts from solving problems to chasing profits, the speaker argues that the company is "going in the wrong direction."

Reconnecting with the Core Purpose

The solution proposed is a deliberate refocusing on the company's original purpose. The speaker advises taking a "deep breath" to regain clarity and re-evaluate the company's core mission. This involves identifying the specific problem the company is designed to solve and understanding how its products and services address that problem, ultimately leading to customer satisfaction and financial success.

Financial Performance as an Outcome

The speaker explicitly states that "Financial performance is the outcome of a purpose. It is not a purpose in and of itself." This statement encapsulates the central thesis: financial success is a consequence of effectively solving problems and fulfilling a purpose, not the primary objective. By prioritizing the problem-solving aspect, companies are more likely to achieve sustainable financial performance.

Conclusion

The main takeaway is that private companies should prioritize solving problems over pursuing profit. While financial success is important, it should be viewed as a natural outcome of fulfilling a purpose and meeting customer needs. By reconnecting with their core mission and focusing on problem-solving, companies can regain clarity, improve their products and services, and ultimately achieve sustainable financial performance.