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Our business schools have taught us to focus on profit. Period. So we have created budgets and focused on hitting the budget. And our business schools have taught us to break large goals into smaller goals for each functional area in our company, with the assumption that if we optimize the performance in each of those functional areas, our company will thrive. Unfortunately, it doesn’t really work that way. Most of the time, the goals of one department conflict with the goals of other departments. And budget-setting time is really a win-lose power play in which each department tries to get as much of the pie as possible. As long as we continue operating under these fundamental principles, we’ll keep getting the results we’ve been getting. But there is another way.
This new way focuses on process and people, with the assumption (which has been validated by extensive research) that the company will thrive and will produce greater and more reliable profits. The charts below show that Sustainability produces outstanding financial results
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