People ask with skepticism: “how are strategic profits any different from regular profits?” Well, that is an important question.
Regular profits are profits – aka “the bottom line,” – that you’ve long been familiar with. If your goal is to maximize those at all costs, strategic profits is outside your scope of interest.
Strategic profits are those built and utilized through design and operation of the business to fund an enduring company so that it can better reach its mission and vision, in alignment with its core values.
Some companies make strategic profit decisions, and others simply make decisions that impact profits.
Thinking Strategic Profits is the process of clearly defining what investments attaining the business mission requires, consistent with core values, and ensuring those are available at all times. There are always options of specifically how to gain strategic profits and how to invest them. That requires creation and care of the environment that sustains them over time.
Why is thinking strategic profits worth your time and energy? Read that last paragraph again. Smaller profits are not necessarily bad, and higher profits are not necessarily good; it depends on the milieu you envision resulting from business success.
To learn more about this and other topics in the process of building an enduring organization, pre-order my book: Manufacturing Mastery: The Path to Building Successful and Enduring Manufacturing Businesses. Available September 1, 2021