Friday, August 24, 2012

Truly great

"Enduring great companies don't exist merely to deliver returns to shareholders. Indeed, in a truly great company, profits and cash flow become like blood and water to a healthy body: They are absolutely essential for life, but they are not the very point of life."— Good to Great, page 194

<idle musing>
Indeed! In the Theory of Constraints, a continuous improvement philosophy laid out in The Goal, there are necessary conditions and sufficient conditions. Necessary conditions are not the end in themselves, but contribute to the goal; without them, you can't get done what you want, but they are simply supporting the actual goal. That is exactly what he is saying here. Unfortunately, for most companies, it seems that making the almighty dollar is their goal and not just a necessary condition.
</idle musing>

No comments: