Bring Value
Today I ran into an old acquaintance at Home Depot that I have not seen in years. We exchanged pleasantries and share what we were up to these days. He shared a few details about the struggles he was having in his business and how he lost sight of why they were doing what they do. He got so busy doing business that he forgot his stakeholders. It reminded me of a lesson I learned.
Many years ago I found myself looking through a dirty cracked window of a small one room train station in Tulun, Siberia, I was intrigued by the activities of a young boy of about 12 who was collecting something on the sides of the railroad tracks. He was studying the dark lumps and looking up and down the track intent on whatever quest he was on. He seemed to be measuring and counting, obviously planning something as he scribbled in a tattered notebook, seemingly oblivious to the frigid, late winter weather. After awhile he came in and talked to the station manager for some time, clearly haggling over something. Soon the two shook hands and the boy turned to leave. Through my interpreter, I stopped him and offered to buy him a hot cup of tea which he readily accepted.
I queried him on his morning activities and what he said still resonates for me even today, some 25 years later. He was about to ask his grandmother for a loan of 5 rubles to buy supplies to start a business of selling coal. The only coal available for the town was dirty, sulfuric, fast and cold burning that the barrow men sold once a month. However, the train taking the high grade, pure, slow and hot burning coal for the power plant 100 miles east, passed through town 5 times a day and always spilled some on the way as they rocked back and forth on the old rickety tracks. He was calculating how much he could collect in a day, if there was competition and if it was a threat, if he needed help and what would it cost him, how much he could sell it for and how hard it would be to convince the towns people to buy it from him. He then told me he needed to know if it would bring value to the customers. But what he said next is what was truly astounding coming from a boy so young. He said that the most important thing he needed to know was would it bring value to his grandmother who would lend him the money.
Having led and consulted with businesses internationally for many years, I am amazed at how many companies get blinded by their daily activities that they lose sight of the basic business insight of this young boy. He saw a need; he found a solution, created an opportunity, researched the market and calculated his abilities. But most importantly, he made a determination that he could bring value to his investor. He was building a business for economic profit based on a tangible need he identified.
A little boy selling coal in Siberia is a bit simplified compared to building a multi million dollar company. Simply put, I want to be about building value for whatever stakeholders I am involved with. I want to be single minded in my pursuit of creating economic value weather they be for profit or non profit. Capitalizing on opportunities in building strategic business units that give strong competitive strength, create dynamic business models that fulfill customer needs while building economic value.