Money does not create value

July 25, 2011

I just read an article about RIM cutting jobs. I’m really tired of this. It’s just the wrong approach to running a business.

Imagine a businessperson said to you “I’m taking $1 million and throwing it in the garbage. It’s not doing anything productive for me.” Of course you’d tell them how stupid that is. So why is it that we’re all OK when businesses take that approach to people?!

If your business is underperforming, it’s not because you have too many people. It’s because you have no idea what to do with them. But remember, money does not create value. Money is value. People create value. People come up with great ideas. People design products and services. People develop brilliant marketing plans – and carry them out…

If your business is underperforming, don’t take the easy stupid approach and fire people. That’s no smarter than an admission that you have no idea what to do with your money. Instead, get smart about how to unleash human potential. That’s where your success will come from. Not from making people unemployed.

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