What Is Your Company’s Philosophy?
Ask this simple question at work and watch the eyes glaze over. It is a bit like
asking why humans exist on this earth. Leave that to the philosophers. Let’s get
down to the work we have to do today. Companies regularly have retreats
where plans are made for the next year, and some forward-thinking companies
even develop five-year plans. But then we hear about the mysterious 500-year
plans of Japanese companies. It is not necessary to know what your company
will be doing in 500 years. The question is whether your vision includes being
around that long.
Toyota’s vision certainly does include being around for the long term. Starting
as a family company, it has evolved into a living organism that wants first and
foremost to survive in order to continue contributing. Contributing to whom?
Contributing to society, the community, and all of its associates and partners.
If we ask why most private companies exist, the answer comes down to a
single word: profit. Any economist can tell you that in a market-driven economy
the only thing a company needs to worry about is making money—as much as
possible, within legal constraints, of course. That is the goal. In fact, any other
goal will lead to a distortion of the free market.
Let’s consider a simple thought experiment. If a sound financial analysis
demonstrated that your company could be more financially valuable if it wereDefine Your Company
Purpose and Begin
to Live It
Chapter 2
Copyright © 2006 by The McGraw-Hill Companies, Inc. Click here for terms of use.