Profits Before People?

I‘ve had a few interesting discussions of late regarding the subject of generating profits at the expense of an organization’s people. 

So we have a baseline let me say unequivocally that I believe putting profits in front of an organization’s people is incredibly short sighted. You can “get away” with not taking care of your people for the sake of profits in the short-term. But if you’re goal is long-term sustainable profitability you must take care of your people first. 

We have seen a ton of short-term profit driven thinking during the pandemic. As an example, many companies used the pandemic as cover to “eliminate the positions” of older employees. That may have even made some business sense but the savage nature of how they went about it did not. 

Demonstrating without a doubt that you do NOT care about your people doesn’t just affect the people you’ve pushed out the back door. It dramatically affects those left behind as they have been given a preview of their future with the organization. 

One of the clearest examples of the outcome of putting profit before people would be a little company named General Electric. Their leadership team was ruthless in driving continuous year over year profits.  At least until they had so demoralized their workforce that profitability became impossible. 

What companies that put profits above people fail to understand is that their profits come from customers. Customers interact with a company’s people. If the people who work for the company are unhappy it’s virtually impossible for them to make the company’s customers happy. 

Profit first leaders somehow seem to fool themselves into believing that they alone are primarily responsible for their company’s profit. They are not. Let me repeat, they are NOT. 

The other challenge of putting profits before people is that profit first leaders put profits not only before their employees, they put profits before their customers as well. They cut corners on customer service, they cut corners on product quality. They cut corners on caring for their people. Their drive for profits become all consuming right up until the point it consumes the company itself. 

Here’s a simple question. As a leader of a company. Would you rather make one dollar a year for the next 5 years or would you rather make 90 cents a year indefinitely? 

If you do not take care of your people then your people will not take care of the company. That has been proven to be true a million times over. 

The fastest and surest path to long-term sustainable profits is people. Both the people who make and sell your products and the people who buy them. If you ignore and or abuse either one then you may make a buck today but you won’t have two pennies to rub together tomorrow. 

And that my friends is a fact!

So…You Say You Want to be a Leader

Odds are there are a significant number of people reading this who want to be a leader one day. They are waiting for a promotion to “leader” in their organization. Perhaps they are searching for a role with another organization that will “make” them a leader.

I’ve got some disappointing news for anyone who falls into those categories. No one can promote you to “leader.” No position or title in the world can make you a leader. Technically speaking, even you can’t make you a leader.

Only the people who follow you can make you a leader. You can call yourself a leader all day long but if no one is following you then you might be leading yourself (which is good) but you are not leading anyone else.

I don’t know any other way to say this except to say that waiting for a position or title to make you is leader is a mistake. It is a very common mistake so don’t beat yourself up over it too much.

People don’t follow positions or titles, they only follow other people. So instead of working for a position of leadership work to become the type of person other people will want to follow.

That type of person has a clear, realistic vision of their future. They can communicate that vision in a way that excites and inspires other people. They celebrate the success of other people as much as they celebrate their own success. They are outstanding listeners and they listen with the intent to understand rather than merely respond.

But more than anything else they genuinely care about people.

People follow people who care about them. One of the truest things I know about leadership is that you can care for people without leading them but you cannot lead someone without caring for them. Truly caring.

Caring about the person. Caring about their lives and caring about what’s important to them.

If you’re only caring about what they can do for you or your organization then you may be a boss but it’s unlikely that you’re seen as a leader.

If your goal is to be an Authentic Leader then you must put people first. If you want to grow your company then first you must grow your people. If you want your people to take care of your customers then you must first take care of your people.

If you’re in a leadership position and you think your people are nothing more than disposable assets then whatever success you may be experiencing today will not be sustainable.

Leadership is people centric. When you occupy a leadership position and you put “stuff” before your people then you forfeit the right to lead.

When you’re people believe you don’t care about them they won’t care much about actually following you. That is a mistake no organization can survive.

The One Absolute of Authentic Leadership

I am frequently asked how to define the difference between Leadership and Authentic Leadership.

A leader is anyone who has influence over other people. That’s a very broad definition and points to the reality that almost anyone can lead. Your level of influence will determine your ability to lead. The greater your level of influence the greater your leadership potential.

But Authentic Leadership is something different. Being an Authentic Leader requires more than mere influence. It requires that you use that influence in a way that positively impacts the lives of the people you lead.

Authentic Leadership begins when you care for the people you lead. That’s because Authentic Leadership requires that the leader put their people first. If you don’t care for the people you lead it’s nearly impossible to put them first.

When you care for your people and you put them first it leads to enthusiastically helping your people succeed. It leads to making a positive difference in their lives.

That’s why the one absolute measure of whether a person is an Authentic Leader is whether or not they have helped make the people they lead better. Better at what they do, better at how they do it and better at why they do it.

Authentic Leaders make a difference in their people’s lives. They do it with no expectation of receiving anything in return for themselves. It may indeed help their organization but that’s not their primary motive for helping their people. They help their people in almost anyway they can because it’s the right thing to do.

A leader can have a large dose of success in many areas but if they haven’t helped another person reach their potential and achieve more than that person thought possible then they may be a Leader but I would not define them as an Authentic Leader.

If you’re wondering whether or not you’re an Authentic Leader you don’t need to wonder anymore. Look around at the people you’ve been leading. Are they better off because of the positive impact you have had on their life? Would they agree that you’ve had that positive impact if they were asked.

If the answer to both those questions is not a solid yes then you have some growing to do as a leader. That growth begins with a decision that says “I will LeadToday.” When you make that decision to authentically lead you won’t only change the lives of the people you lead, you’ll likely change your life as well.

Adjust Your Own Mask First

I spend a fair amount of time on airplanes. So much time in fact that I think I could do the pre-flight safety announcements from memory. In you’ve ever flown you may recall the part of the safety announcements where they say, “in the unlikely event of loss in cabin pressure oxygen masks will drop from a panel above you.” They also say to adjust your own mask before helping others with theirs.

Have you ever wondered why they say that? For instance, think it would be almost instinctive to put your child’s mask on before your own. Yet, the experts advise otherwise.

That’s because they know you won’t be able to help anyone if you’re not conscious to do so. You can’t go long without air so you must help yourself first. It somehow seems wrong to do that. It seems kinda selfish. But if you truly want to help others you must make sure you’re in a condition to help. Unconscious is not a very helpful condition to be in.

The same holds true in everyday life. You must take care of yourself first if you’re going to be in any condition to take care of others. That may seem just as selfish as putting your oxygen mask on first but the same principle applies.

The more caring and giving person you are the greater the danger that you’ll forget about caring for yourself. The problem is you wear yourself down to the point where you can’t help anyone, not even yourself.

So fight the instinct to put everybody else’s oxygen mask on first. Put yours on first. That means resting before you’re overwhelmed. That means carving time out in your busy schedule to do something just for you. That means understanding that you, and the world, deserves the best of you, not what’s left of you.

Just to be clear, I’m not recommending that you do less for others. I am recommending that you do more for yourself. Taking care of yourself is the surest way to be certain that your in a position to take care of others. Don’t forget that simple fact!

The One True Prerequisite of Leading

You must have a follower!

 

No matter what your title happens to be, no matter how lofty your position may be within your organization if no one is following you then you are not leading. Period!

 

It’s probably the number one leadership mistake I see and I see it often, very very often. People believe that it’s their title or position that makes them a leader. This misnomer is especially common with people new to a position of leadership. 

 

But here is the absolute fact: titles and positions on an organizational chart do not make you a leader. The people following you make you a leader. 

 

You can be promoted to a position with a fancy title that makes it sound like you are a leader but you must earn the right to truly lead. No one, absolutely no one can promote you to the position of Leader, that can only come from the people you would lead and you must constantly demonstrate that you’re worthy of it.

 

The fastest way to demonstrate that is by showing your people that you care about them. Bringing donuts to the meeting is nice but a drone could do that. 

 

Showing you care requires that you connect with your people in a meaningful way. If you’re in a leadership position then I have some questions for you… How much do you REALLY know about the people you claim to lead? Do you know their goals, their needs, their hopes and desires for their future?

 

Do you know what their life struggles are outside of work? Did you ever consider those struggles may affect their work performance? Did you ever consider that maybe, just maybe you could help them, coach them or perhaps just offer them someone to talk to?

 

Leadership is about people and to earn the right to lead you’re going to have to be willing to SHOW you care. You must be willing to invest a piece of yourself in someone else’s life. You see, when you make a difference in your business you’re a manager and that’s great but when you make a difference in the life of someone else you’re a leader and that’s better, much much better.


If you’re in a leadership position it’s a good idea to turn around once in a while to see if anyone is really following. If they are not then it’s possible, actually likely that the people who could be following you have decided that you simply don’t care enough to truly lead.


A Culture of Caring

Every now and then I’ll receive a tweet or a response to a blog post that says the stuff I write sounds good in theory but it isn’t realistic in today’s business world. 

 

In particular people seem to take issue with my frequent statements that you can’t truly lead people until and unless you truly care about them.

 

I’m told “caring” is a sure path to failure. It’s a weakness that no business can afford today. They say that caring for your people is a luxury of bygone eras. Some people have even told me caring about your people is just plain stupid. 

 

I generally don’t respond, or I respond with a recommendation that they at least give caring a chance. But last week after reading a really terrible tweet I told the person that I was really glad I didn’t work for them and then in the spirit of practicing good human relations I told them I hoped they enjoyed the cave they were living in.

 

Okay, so that might not have been Dale Carnegie style human relations but the guy was pretty abusive with his comment. 

 

In my opinion, if we ever get to the point where caring about our fellow human beings indeed becomes impractical then we might as well hang it up. Would there be any point to living if we couldn’t care about people anymore? It doesn’t matter if we’re talking life in general or we’re talking business in particular, caring is never wrong and it’s never a weakness.

 

The fact is that the more you build a culture of caring within your organization the more stable and successful, and by successful I also mean profitable, your organization will be. I am completely at a loss when trying to understand people who seem to sincerely believe that you can get more out of people by treating them like dirt than you can get by treating them like the valued human beings that they actually are.

 

I will never understand how a “leader” could expect their people to take care of customers when those same people are not cared about by their leader. It just doesn’t work. It has never worked and I can’t imagine how it ever could. 

 

If you’re a leader who expects your people to care about your customers enough to provide them with top quality customer service then you better be a leader who consistently demonstrates how much you care about your people.

 

People who aren’t cared about, who don’t know with some degree of certainty that they are cared about, are far less likely to care themselves. 


A culture of caring will never weaken your organization, it can only strengthen it.  Don’t even think about believing otherwise. 

What Great Leaders Know

There are so many differences between a person who manages and a person who leads that I could write on that single topic almost exclusively. Great leaders know those differences well.

To be clear, the skill set of a manager is very different than the skill set of a leader. The mindset of a manager is vastly different than the mindset of a leader. To be clear as well, both managers and leaders are critically important for the success of any organization. It is hard to say one is more valuable than the other because without both an organizational will eventually fail. To be crystal clear, there are many people who possess both skill sets, there are far far fewer people who possess both mindsets. 

Managing is about “stuff” and leading is about people. Budgets are managed, inventories are managed, systems are managed, “things” are managed. Leading is solely about people and the singular focus of truly great leaders, at least during those times when they are actually leading, is their people. 

Managers can help people accomplish more for the good of the organization, managers can even motivate people. Many managers in fact look like decent leaders. The only thing missing is the motive of true leadership. The motive of true leadership is to do the right thing for the people simply because it’s the right thing to do. That’s where the mindset comes in.

Managers who look like leaders have the ability to get the compliance of their people. They set up a sort of transactional leadership model that says to their people “you’ll be fine here as long as you do what you’re asked.” Implied of course is the fact that when you stop doing what you’re asked then you won’t be fine anymore. That’s where compliance comes from.

Most people in an organization will in fact do what they are asked. The problem is that most “managed” people will do little more than what they are asked. They can appear to be engaged in the organization and engaged in their work when in fact they are more likely just putting in their hours.

True leaders, great leaders, have no need for the compliance of their people. They earn the commitment of their people and commitment far outweighs compliance. They earn it by putting a relational leadership model on full display. They build real relationships with the very real people they lead. They build them by showing that they care about people.

This doesn’t mean they have to become best buds and hang out together every weekend. A relational leadership model simply demands that the leader truly cares about the people they lead. They understand, they fully and completely understand that “stuff” is managed and people are led. 

The mindset of a manager is “we need to get this done,” the mindset of a leader is “we need to get this done in a people valuing way that builds people up and helps them reach their full potential while getting it done.” 

When we manage people every task is a “one off” exercise and managers find themselves telling their people the same things over and over. Every time a manager asks their people to do something it’s as if they never asked them before.

When we lead people every task is a learning exercise and because the people are committed to their leader they willingly repeat the task again and again without being asked over and over. 

Managing people helps them understand that the work is important. Leading people helps them understand that while the work is important they are more important. 

This sounds worse than I mean it to sound but managers use people to get the job done. Leaders develop people to get the job done. The different motives come directly from the different mindsets. One has immediate short-term impact and one has more patient potentially endless impact.

Make no mistake, people can build semi-successful careers by trying to manage people but people who lead people build more than careers, they build legacies. They build those legacies by building people who become great leaders in their own right. 

You can either be a manager or a leader, if you’re truly blessed you can even be both but your success and the success of your organization will ultimately depend on you understanding the vast difference between the two.