WEEKEND READING. Let's talk about Labor Day. This is a great opportunity to discuss one of the three pillars of business. Can we agree that businesses are simply groups of people performing processes to generate cash? Without people, we have nothing. Private business is the engine for the pursuit of happiness for all stakeholders - owners, employees, suppliers, distributors and the communities in which they live.
A little history: Labor Day is a federal holiday that celebrates the achievements of American workers. The roots of Labor Day date back to the decades following the Civil War when workers took part in strikes and rallies to demand shorter work days and better working conditions. Congress declared the holiday in 1894.[1]
So let's stay super focused on the human factor. The Growth-Drive methodology starts with people: first with a Growth-Driving Objective of creating an effective senior leadership team and a business that is not dependent on the CEO…
Anyone care to guess what the second is? People. The Growth-Driving Objective is to have 'People: Productive & Loyal'. You can change that to "people who are efficient with low turnover” but that seems awfully dry. Here is this Growth-Driving Objective, pulled from our first dimension of business growth checklist:
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If I can summarize, wherever there are two or more people together there is a culture - good or bad, purposeful or happenstance. To drive growth the culture needs to be purposeful and positive. Check out the list, it tells a story: people need to rally around a purpose, understand what defines their success, and be fairly compensated for a job well done. This creates dignity: the human dignity of knowing they are performing well, and the dignity of earning a fair living in the process. When you gather people who agree with your purpose and allow them dignity, they will move mountains.
‘People: Productive and Loyal’ is of course just one of the gears in the business engine, and we teased that a Strategic Culture (Growth-Driving Objective 2 in Dimension 2 ‘Creating Predictable Sustainable Growth’) meshes with ‘People: Productive & Loyal’, and these two combine to feed the rest of the business machine. Want to drive faster around the track, and generate more free cash flow? Make sure the Growth-Driving Objectives -the gears in the business engine- are strong and synched. When one gear turns they all do, and the business engine spins... healthy gears drive growing profits, growth and value.
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So maybe as you're sitting quietly with a coffee or a cocktail on this holiday celebrating people and work, ponder how you might help your clients implement best practices in this key area. We are all about leaving an indelible positive mark with our clients, and this is a great opportunity. Maybe the one that contributes most directly to our national wellbeing and wealth. The Growth-Drive methodology provides guidance for increasing strategic capacity in this critical area.
I'll reiterate that private business is the engine for the pursuit of happiness, and that by unleashing sustainable growth we can democratize wealth. Wealth shared not by cutting the same pie into smaller slices, but by creating a bigger pie. And you, the business advisor are key to growing the pie. Is this a great country or what?
Have a great holiday weekend y'all.
We'd love to know what you think, comment here or email blog@growth-drive.com.
[1] https://www.investopedia.com/news/history-labor-day
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