Are we going to remain bottom line driven?

The primary objective of any business is to be profitable. Whether you or I like that fact or not is immaterial. When the balance sheet goes into the red, the business is at risk and so are all the jobs associated with it. As a result, business in a capitalist society has traditionally been very much bottom-line driven, South Africa being a case in point. Business priorities have been traditionally divided into "Essential" and " Non-Essential" (or Nice to Have). The essentials get done and the "Nice to Have's" get lip service.

What is interesting is that the lines are getting a little blurred these days. For instance, you can't just fire a person anymore. Correct disciplinary procedures have thus moved from Non-Essential to Essential. Strikes are an accepted part of the bargaining process these days (mostly around June/July these days). Human Rights are moving to the forefront. Companies are obliged to pay over 1% of their payroll to a skills levy fund to ensure that staff undergo annual development and essential training. And the attempts of business to relegate customer service to the cheap seats is failing dismally all over the world.

Quality issues that dogged the seventies and early eighties are all but settled. Take a look at any consumer serving business today and you may find, as I have, that the basket of offerings determining the flow of customer loyalty is once again topped by service.

Europeans visiting this country get the fright of their lives when fill up their hired car, mistaking our eager petrol pump attendants for hijackers (man oh man, the international press are doing a sterling job!) They then purr with delight as not only is the tank filled, but oil, water and tyre pressure is checked with a smile and the windscreen cleaned to the bargain. Fact is, ladies and gentlemen, folk just can't get enough of being pampered and made to feel real special! And they're prepared to pay for it too.

No matter how much IT, fast cars, fancy gadgetry and microwave lifestyles we create, success will go to the businesses whose leaders understand and value people, internally (staff) and externally (customers). And by investing in people and systemising those little touches that make people feel good about doing business with you, why on earth would your customers think of going anywhere else?

It's called the personal touch. It goes in and out of fashion as quickly as the markets go up and down, but it's importance and effectiveness will never ever change

There's just one little snag however. The bottom line has to be maintained - intact. That will always be Essential.

Paul du Toit (January 2004)