{"id":170,"date":"2012-07-16T07:58:23","date_gmt":"2012-07-16T07:58:23","guid":{"rendered":"https:\/\/www.power2improve.com\/c78-english-uk\/c85-blog\/the-goal-is-not-making-money\/"},"modified":"2016-11-01T11:35:26","modified_gmt":"2016-11-01T09:35:26","slug":"the-goal-is-not-making-money","status":"publish","type":"post","link":"https:\/\/www.power2improve.com\/en\/blog\/2012\/07\/16\/the-goal-is-not-making-money\/","title":{"rendered":"The goal&#8230; is not making money"},"content":{"rendered":"<h3>Reading the same book again, after many years, is like meeting an old friend. Rereading\u00a0<a href=\"http:\/\/www.managementboek.nl\/boek\/9789049101268\/het-doel-eliyahu-goldratt?affiliate=1635\" target=\"_blank\">The goal, by\u00a0Eliyahu Goldratt<\/a>\u00a0was like a nice get together that brought back good memories. But, \u00a0I was most struck by how I now fundamentally disagree with my old friend.<\/h3>\n<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-overflow:visible;--awb-margin-top:20px;--awb-margin-bottom:0px;--awb-background-color:rgba(255,255,255,0);--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last fusion-column-no-min-height\" style=\"--awb-bg-size:cover;--awb-margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\"><div class=\"fusion-sep-clear\"><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"margin-left: auto;margin-right: auto;width:100%;\"><\/div><div class=\"fusion-sep-clear\"><\/div>\n<p>In the book &#8220;The goal&#8221; is defined as &#8220;making money&#8221;. Even when considering that this was about the goal for a manufacturing plant and its manager that is fundamentally wrong.<\/p>\n<p>What happens when making money really is set as the goal? Whoever does so will become short term focused. Simply because of the time value of money: money now is better than that same amount of money some moment in the future. Thus making money as the goal leads to:<\/p>\n<div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-overflow:visible;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last fusion-column-no-min-height\" style=\"--awb-bg-size:cover;--awb-margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\"><ul style=\"--awb-iconcolor:#2f994b;--awb-line-height:27.2px;--awb-icon-width:27.2px;--awb-icon-height:27.2px;--awb-icon-margin:11.2px;--awb-content-margin:38.4px;\" class=\"fusion-checklist fusion-checklist-1 fusion-checklist-default type-icons\">\n\n<li class=\"fusion-li-item\" style=\"\"><span class=\"icon-wrapper circle-no\"><i class=\"fusion-li-icon fa fa-check\" aria-hidden=\"true\"><\/i><\/span><div class=\"fusion-li-item-content\">No business start up (unless it would start making money from its very start\u2026 indeed a never seen situation).<\/div><\/li>\n<li class=\"fusion-li-item\" style=\"\"><span class=\"icon-wrapper circle-no\"><i class=\"fusion-li-icon fa fa-check\" aria-hidden=\"true\"><\/i><\/span><div class=\"fusion-li-item-content\">Business would be terminated way sooner than happens now (each time as soon as liquidation value is higher than continuation value).<\/div><\/li>\n<li class=\"fusion-li-item\" style=\"\"><span class=\"icon-wrapper circle-no\"><i class=\"fusion-li-icon fa fa-check\" aria-hidden=\"true\"><\/i><\/span><div class=\"fusion-li-item-content\">The goal followers would be not exchanging any goods, since money would have a higher value than a good with an equivalent value (otherwise there would be a contradiction in making money being the goal).<\/div><\/li>\n\n<\/ul>\n<h3>(Making) Money is never a goal<\/h3>\n<p>At the risk of becoming too philosophical: money is never a goal. By definition it can not be a goal: Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another. So, by definition money is a means to a goal. Not a goal. For a real life, be it a bit morbid, test: ever heard of anybody on his\/her deathbed saying: \u201cI whish I had made more money!\u201d? Or: \u201cI have had a meaningful life because I made so much money!\u201d?<\/p>\n<p>So, if Making money is not the (long term) goal&#8230; what is? Read my <a href=\"www.power2improve.nl\/180\">next blog<\/a> \ud83d\ude42<\/p>\n<h5 style=\"text-align: left;\">Photo:\u00a0<a style=\"text-decoration: none; color: #0063dc;\" href=\"http:\/\/creativecommons.org\/licenses\/by-sa\/2.0\/\"><img decoding=\"async\" width=\"15\" height=\"15\" class=\" size-full wp-image-58 size-full wp-image-169\" style=\"vertical-align: middle; border: 0px initial initial;\" title=\"Attribution\" src=\"https:\/\/www.power2improve.com\/wp-content\/uploads\/2011\/05\/cc_icon_attribution_small.gif\" alt=\"Attribution\" border=\"0\" \/><img decoding=\"async\" style=\"vertical-align: middle; border: 0px initial initial;\" title=\"Share Alike\" src=\"https:\/\/www.power2improve.com\/wp-content\/uploads\/2012\/07\/cc_icon_sharealike_small.gif\" alt=\"Share Alike\" width=\"15\" height=\"15\" border=\"0\" \/><\/a>\u00a0<a style=\"text-decoration: none; color: #0063dc;\" title=\"Attribution-ShareAlike License\" href=\"http:\/\/creativecommons.org\/licenses\/by-sa\/2.0\/\" target=\"_blank\">Some rights reserved<\/a>\u00a0by\u00a0<a style=\"text-decoration: none; color: #0063dc;\" href=\"http:\/\/www.flickr.com\/photos\/abdulhai\/\" target=\"_blank\">~ Abdulhai A. Al-Abdulhai~<\/a><\/h5>\n<div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reading the same book again, after many years, is like meeting an old friend. Rereading\u00a0The goal, by\u00a0Eliyahu Goldratt\u00a0was like a nice get together that brought back good memories. But, \u00a0I was most struck by how I now fundamentally disagree with my old friend.<\/p>\n","protected":false},"author":9,"featured_media":10291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[237,234],"tags":[121],"class_list":["post-170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leadership","category-people","tag-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The goal... is not making money - Power2Improve<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.power2improve.com\/en\/blog\/2012\/07\/16\/the-goal-is-not-making-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The goal... is not making money - Power2Improve\" \/>\n<meta property=\"og:description\" content=\"Reading the same book again, after many years, is like meeting an old friend. 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