What is the reason your company does exist? If you are an employee or inherited the business from the founder-owner, this article may bring some insight. Profit Second mindset not necessarily undermines that your company should not make any money.
Rather such a mindset will multiply your profit and will help you to make a lot more money than you can imagine. I make a powerful request to you to embrace this idea and give it a try.
It was in Mumbai City many years ago. A busy, crowded train efficiently took me to a place where I will be meeting my first major client in my portfolio to sell Textile Yarns. The prospective client was into the clothing business with a local brand and was looking to sell to the international market as well. They were doing pretty well in India that point of time. As I reached, a man in casual wear with a curious look greeted me as if he was just waiting for me. His neatly combed hair and glasses made him look like a wise businessman. Somehow I felt he is happy. Maybe because I reached in time or maybe I exchanged a smile. I had a nervousness of a novice how to start the conversation. As he sipped his morning tea, he threw a silent glance at me. I thought he was making a room for me to start the conversation and I took charge in a self-proclaimed manner. I pulled my sales pitch training and told him.
“We are Industry leader in textile yarn production and narrated how many operations we have in the country. I told him about our manufacturing process and even the machinery details. How many people work for us and where do we sell our yarns. And supported every reason why he should buy our product. Even I told how the company is protecting the shareholder’s interest by registering year after year profit.
At the end of the meeting, I found customer became indifferent towards conversations. I could not close the deal. My customer was sober and I felt he was happy to meet me. I did pretty well in presenting my company. Then what went wrong ? I felt terrible internally and took my next train to the office. Mumbai trains are like local anaesthesia, it helps you to forget your personal sorrows for a while instantly, as you interact with so many people with so many stories inside them. But I could not forget this client call.
Later on, whenever I have met clients, I have tried to articulate myself not to be much vocal about what products, how we make it and what success story we have. I started realizing that I was wrapping myself into the company’s entity, a success which has no value to a client.
Rather I started discovering why does this company, do exist first of all? After queries, I came to know that the chairman of the company was a very pious man and he wanted to help people by creating jobs. He never kept profit as the first priority. It was a genuine approach to help people and that’s why there was an environment of complete respect and trust within the organization. When the Chairman thought about the customers, he always came up with empathy about how to help them to succeed with good quality, reasonable price, timely delivery. With this vision, the entire team was doing highly motivated work as people knew in their hearts that the company truly cares for them. So I changed my subsequent sales pitch to :
“We are a company which exists because our Chairman wanted to create jobs by setting up this company. He is pious and very down to earth person and he truly cares about people. Employees do love and respect him too. He always encourages to take care of customers through empathy in the form of right product development, consistent quality and committed deliveries.”
Such a change of mindset produced an immense result. I call it Profit the second mindset.
Some organizations do well and some go down the hill, even though they are in the same segment of the industry, with similar cost structure, similar technology. What are the real ingredients for sustainable success? Why the company’s performance change with the leadership changes? Why in family business the scenario in father’s time looks so different compared to when children do run? Manoeuvring in a changing environment is essential. Everybody does that today. Cost leadership is a no brainer. Everyone with little sense does it. Then what is that defining factor with an impact?
With the change of leadership, the real inspiration and motivation of the founder when he started the business, gets diluted. The managers try to see everything from the bottom line angle, in the name of cost reduction the focus on employee gets lost and thus creating an environment which lacks trust and respect. Instead of remaining in the shoe of the client, ignorance makes the sales team sound painfully arrogant if the company is already succeeding.
The leader needs to make him aware constantly why the company exists and his team should resonate to the same idea. All actions in the organization need to be pivoted on such a central idea. The motivation and energy emerging from this awareness can truly help the company to achieve many milestones. Profit Second approach is not necessarily an idea which ignores to make a profit. Keeping Profit Second motive will help you to make more profits in business. Just be a genuine and little patient.