So now my question is how many folks realize you can have an extremely profitable business by focusing on the people instead of the money? In fact, I would be willing to propose that by focusing on people a business can be even more profitable than one that focuses on the money.
There are many companies that have been very good to their employees and have been very profitable. It's not a new concept. They are still focusing on the bottom line, it's just one of the many approaches companies have to choose from.
There is a company here in Cleveland, Lincoln Electric, that has been very profitable for years. The average person earns DOUBLE what their counterparts at their competitors make. This has been going on for 40 years.
The path to profits is selling something for more than it costs to make or do and doing more of it and more efficiently.
The path to profits is not simply taking care of people. Enron took care of a lot of people....that didn't work out so well. You still need sound business practices which involves keeping a very close eye on the bottom line.
Google is able to spend money on perks for their employees BECAUSE they are profitable. Those perks, in turn, can help google's bottom line by retaining good employees longer. But if they are losing money, hiring a chef is not a smart idea.
But make no mistake. It's about the money. It's always been about the money, and always will be. What you are talking about is how some companies have realized that investing in people can have great rewards. It's not new. Some call it looking at the big picture.
Sure, some companies are short sighted and look to save money now that ends up costing them money in the long run. Penny wise and pound foolish. Other companies, like Apple and Google recently, have found that by taking care of key employees, they've increased their profits.
But Apple did not get to where they are by not caring what they charged for an iphone or ipad.
Steve Jobs, by most accounts, didn't spend a lot of his money. Money wasn't that important to him. He knew, however, that there is only one way to keep score in business and one way to be able to invest in making great products. It's the money.
