It’s easy to think of reasons why profitability shouldn’t be the key measure of success. Shouldn’t great customer service and powerful branding lead to profitability? Maybe, maybe not. Profit is the scorecard. Bottom line.
I’ve seen firsthand why profitability should be the KEY measure of success. Without profitability, you’re done. Everybody should expect to go through some patches and of course business is all about taking calculated risks. But there has to be a focus on a timeline to achieving sustainable profitability. Buying market share at unprofitable levels, or extending yourself into territory that erodes your overall company profits is potentially a huge disaster.