Plato once said that "The
path to wisdom begins with a common set of definitions."
You must develop a fundamental understanding and definition
of wealth before you can determine how wealthy your company
truly is--and challenge your old beliefs about it.
The word "wealth" was originally derived from
the old British word "weal," which means "well-being".
It was a term used to describe someone who possessed great
qualities. In most business circles, however, this
traditional definition has gotten lost. In today's
modern times, online marketing pundits will tell you that
wealth is measured by the level of income derived from the
passive revenue sources (such as online product sales, affiliate
programs, book royalties, and investment dividends) that
allow you to live without depending on a job.
In my ongoing search for the perfect definition of wealth,
I returned to a tried and true resource—the father
of "modern management" -- Peter Drucker.
Drucker defined the purpose of a business this way:"
Any business enterprise has two - and only two - basic functions:
marketing and innovation. These are the entrepreneurial
functions. Marketing is… the unique function of business."
These are certainly two cornerstone requirements to optimizing
business value and creating a wealthy business over time--but
do they provide the whole picture of a truly wealthy company?
Because I wasn't sure that this definition captured every
element of the kind of wealth that I was hoping to define,
I kept searching. The current role models and definitions
of "wealth" are enough to make your head spin.
And let's face it—very few media outlets praise today's
Fortune 500 companies
for "possessing admirable qualities."
So let's pause for a moment. You're
a member of our EnergizeNews
community because you want more out of life than cash in
the bank, right? You want to perform work that creates
meaning and significance in the world. That's why
these definitions no longer serve us. Therefore, you
must define wealth in a way that honors your values, your
vision, and your company's true purpose.
Why
Old Definitions Don't Work
Here's why those older definitions may serve as reference
points, but don't manage to fully define your business'
true potential. Over the past decade, many firms have
gone from "hero to zero" at breakneck speed. The
primary reason for this may well be that these companies
never fully understood the more intricate parameters of
wealth. The cases of corporate giants AIG, WorldCom,
Enron, and Adelphia taught us that strong market share,
political power and money do not necessarily translate into
wealthy – or successful -- companies. Rising
foreclosure rates, contentious elections, spiraling national
debt, and perceived resource scarcity have made the unprecedented
rise in our so-called "prosperity" over the past
decade a mixed blessing.
This lack of vision and purpose has caused millions of seemingly
displaced workers and seasoned executives to ask: Is
all of his hard work worth it? Is that all there is?
(Peggy Lee isn't the only one who sings this song!). The
real blessing underneath today's corporate "tornados"
and talent exodus is that many people are seeking
a more meaningful balance between money, purpose, and happiness--
which is causing them to re-define wealth on their own terms.
Here's
How to Assess Your Company's "WQ" (Wealth Quotient):
I have spent 24 years advising companies on growing their
company's value without selling their soul or churning their
people. And my recent CEO interviews further fueled
these findings.
Companies who focus on long-term
wealth and sustainability ask these questions. Review these
and assess how wealthy your company truly is—and whether
it is well-positioned for the next stage of growth or sale:
- How do you regularly ensure that you consistently
express and demonstrate your value to the market?
- To what degree are you handsomely paid
for that value (as reflected in your profits, liquidity,
cash flow, number of qualified referrals generated, average
sales cycles, close rates, employee happiness, and sales
predictability)?
- To what degree do you continuously innovate,
and reward innovation?
- What methods do you employ to focus on business
endeavors that do not exploit and degrade other people?
How frequently are they tracked, measured, and improved?
- How effective are you at attracting enough of
the right clients? In other words, you know who
they are, and you market to them in an authentic, consistent,
systematic way.
- How committed are you to endeavors which do
not cause irreparable damage to the natural environment?
- How consistently do you provide your stakeholders,
investors and employees enough time for family, friends
and personal growth?
In our upcoming book, "EnergizeGrowth
NOW: The Marketing Guide to a Wealthy Company,"
we will explore these seven qualities. You will learn
about companies who are growing their WQ, and what you can
personally do to create a wealthy company worthy of notice.
Until our book release, do yourself a favor. Bring
these questions to your next management meeting. See how
people respond. Ask your teams to research how organizations
like Tom's of Maine,
SPUD, The
Beryl Companies and Seventh
Generation are generating solid returns for investors
and their community by continuously exploring these WQ questions.
(If you can't wait to read about them in our
upcoming book, contact
us for a consultation).
Whenever clients include these questions
in their planning activities, great results happen.
The quality of their business relationships
improves. The average size of their engagements increase.
They abandon the "hours for dollars" billing model.
Finally, the time spent "firefighting" declines.
Their business can operate without them. The CEO can actually
perform the functions of a CEO -- like strategic planning,
consummating joint ventures, recruiting board members, and
coaching their executive team. Feelings of overwhelm, frustration,
and exhaustion disappear.
What's possible when you explore these
questions for your own business?
Now is the time to expand your perspective
on building a wealthy company. When you do, your impact
on the planet will be transformed.
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