I grew up with a little book. I lost it while I was aging but, for last christmas, my mother gave me a new copy of this book: The little Prince.
There is one thing in this book that amazed me so much; it is the part where the author explains how grown ups only see numbers as valid answers. If you introduce someone to your parents, what will they ask? "How old is he?", "What grade is he in?", "How much do his parents make?". They will not ask what his favorite sport is. What his favorite food is. What he did on holiday last summer. How have numbers become so important to the grown ups?
This is what I see happening around me. Numbers are more and more important. How much do you make per hour on your side job? How many comissions did you do? How much profit can you make out of your business? It's about maximisation. Concerning the above, I don't think it is weird at all that Shell is one of the most popular companies to work for in the eyes of the average Delft student. you can do the biggest projects, the farest away over the world, travel the most miles and lay the longest pipeline. A friend of mine was speaking of a project he was working on. "This is really one of the coolest projects I've worked on so far!". "Oh how's that? Please explain". "Well it's an 80 Million dollar project, the most expensive i've worked on!". - Maximization, again.
This maximization, it's nothing but a maximazation of profit. "0,1 % of the 80 million goes to the construction management consultant (which is my friend), can you see how much that is?!".
What happens if this maximization becomes standard? I could see culture and arts die. Why subsidize a local workshop facility? Put the same money in a fund, wait a couple of years and get your profit. Bet this artist could not make the same profit within the same amount of time? Nope. But could the fund inspire as many people as the artist could have? No, because the fund is an abstract. It is nothing. The money is untracable. What did you sponsor exactly with your money?
However, not all maximization of profit is bad. My position in this is: look at the actual reward. This is something different then profit. I built my own music speakers once. It took me 3 weekends. Cost me around 120 euro's in materials. 3 weekends is 3 * 2 * 8 = 48 hours. I earn 10 euro's per hour when at my side-job, so in total these speakers gave me a profit of -600 euro's. But the reward was outstanding. I have unique speakers, I custumized them according to my own preferences. I learned to work with wood, paint, and laque. I learned to wire and solder the electrical components. I cannot prove if the reward compensates for my "loss of 600 euro's". It does feel that way though. For me that's enough.
So, how rewarding is it to invest in a fund? No idea, because I don't know what I invested in. How rewarding is it to sponsor the local football club? Well, look at the smiling faces of this boys football team with brand new outfits. I wonder how rewarding it will be, if all coorperations that run on maximation, run on reward? I can't even imagine.
So I guess this is your post for the quote of business and profit. First of all, your anecdotic redaction style is refreshing; it makes me quickly identify and share my own ideas.
BeantwoordenVerwijderenI agree that nowadays the quantitative characteristics of goods and people matter excessively. Cyphers are a measure and a way to improve life quality, get achievements, etc., but are also used to pigeonhole people, to humiliate them; number references can easily become the dehumanizing aspect of social relations. However although sometimes I have felt overwhelmed by numbers, it hasn´t ruled my life neither the life of most people I know. So I guess and hope there is really a smaller percentage of people that put numbers as a priority point of view in their lives.
I think that maximization is a standard goal for conventional business. But every day there is less conventional business for which profit is as relevant as the social impact generated in their costumers. There are new businesses mentalities that seek for and recognize reward as a self-motivation for each member of the organization. Sooner than later increasing profit is the inevitable outcome of this new way to handle businesses. So be confident that your thoughts are in many more heads of many businessmen around the world, and make sure you hold on to them in times of trial.
I didn´t understand exactly what you meant in the paragraph you talked about your speakers. I feel that the concept of maximization is being interpreted in two ways without this being clarified. Are you talking about maximization of profits in terms of reward? If it is like that I guess my idea of profits is narrowed to the economic aspect.
Also in the sentence “But could the fund inspire as many people as the fund could have?” can be clearer, as a fund´s goal isn´t to inspire anyone, and if it does is as an unexpected result of its business operations.
Thanks for your clear feedback Diana. And I am greatfull for reminding me that not all busisnesses run according to the image that I have sketched in my post, I think i exaggerated my post a bit as well, for the sake of a good read. You are right that some businesses also obtain other mindsests, more socially focussed. This is what I meant with the speakers as well. I made these speakers myself not because it's cheaper, but for my personal development (learning a craft etc).
VerwijderenI enjoyed this post even more than the first one. First of all because you mentioned "The Little Prince" book, one of my favorite. What else I found interesting is your way to look at Friedman's quote. Instead of simply criticize a sentence you try to look into it and see what are the implications and what is "hide" behind words and concepts.
BeantwoordenVerwijderenI agree with your final position "look at the actual reward". Because it's a different and more positive way to look at profit. I think somehow you helped me define what I've tried to say in my own post about this topic.
To conclude I just want to compliment you for your writing skills. Reading your posts is really pleasant and your writing is generally flowing.
Thanks a lot Francesca, I really appreciate your positive feedback!
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