Leadership vs profit, is that a real thing?

Everyone wants to make profitable projects, and everyone is asking – what is the key and how are we making profit? For me the success factors are clear and simple and are already proven in field since many years back. I have worked in industries since 1995 when I started as a mechanic and worked myself up to Director of project execution. During this career the success factors has always been clear to me and also obvious. The first success factor is always:

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1.????? Team, trust and fellowship – When people sense a belonging, they lift each other and execute even when it is rough. In my opinion a lot of company and leaders underestimates the power of fellowship and complete trust and what profit it can generate for a company. A few companies have had this as a clear strategy. Yes, they have been very profitable because people support the business and people are the business! Companies that priorities this also have a strategy of cultural differences, diversity and inclusion and they execute it properly and with respect.

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2.????? Do what you love – When people do what they think is fun and developing it makes sense and they can execute under hard conditions because they do what they love. Sounds simple but it can be hard for companies to generate such an environment.

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3.????? Strategy & Processes – Incorporate one strategy and one process and stick with it, period! And then during execution you work with continuously improvement where you develop your process, organisation and knowledge by reflecting.

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4.????? Development and education – People want to grow and get recognition for their efforts, if that is not available, they will seek that somewhere else. A lot of companies do not want to be ¨a Company that develops people for competitors¨, but what if the people stay and you develop them? That is for me a wonderful thought. Education is not always formal education, it can also be by leading by or led by example. A great leader shows others how to act and they also support their people to be successful.

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5.????? Challenging tasks – People want to fix things and do it smart, allow them to. Also, teach people to not fix things that are not broken and also to use methods proven in field. Most development today (except AI) is based on old methodologies.

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People think this is easy to the right thing, but it is not for the one with a poor mind. Leaders that do not set up their people up to be successful, will never be profitable. There are a lot of inspiring leaders in industries on all levels, all from supervisors to supervisory board members that leads with great example, and they all have the parameters above in place or at least the eager to thrive towards it.

As an example I will quote former CEO from National Oilwell Varco, Mr Pete Miller from a conversation we had in 2012 – ¨I want people to be successful and to have fun, otherwise they should not work for National Oilwell Varco! If they don't like what they do it will not be a good result¨ That strategy was realised into proper figures and the profit talked for themselves when he resigned from NOV and closed 2014 with a revenue of approx. US$21.4 billion and with a gross profit % of 27.1% Reference to annual report 2014.

So companies should ask themselves, do we have the right leaders to take care of the people that will take care of the business?