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Profitability is only one factor in the continued success of an organisation. Consider the following scenarios:

1. The Management Team work the staff so hard, don't pay overtime to get the products delivered and meet the financial target to get their bonus - probably result - mass resignations and key staff leave to move to competitors. Not very good start for next years financials is it.

2. The Directors keep profitability high by not doing any Research & Development - possible results - competitors bring out the next new thing, and your sales plummet thereafter. Not good again.

3. The Executive don't hire in new people, have no training or succession programme, and then wonder why after a few key people leave, the organisation is not performing as it was. Just look at what happens to a world record sports team that is kept together for a long time, when the key players leave, the new team just collapses and is never as good and takes years to get back (if they ever do) to their former glory.

4. To keep overheads low Business Development only focus on their existing customer's, don't look for new ones (because of travel restrictions) and don't look at adjacent markets - the result is gradual loss of sales as the company struggles to adapt to the changing market. Not good for long term company survival.

5. Overheads are cut so much that it takes a week to get a pencil out of the stationary cupboard - how much time are your staff wasting on internal bureaucratic processes whilst not doing their day jobs.

The scenarios are trying to illustrate that focus on one area can easily allow complacency into a business, that just breaks down in other neglected areas. Organisations are like delicate machines, they need constant care and attention (even to the little things) otherwise they stop working or become far less efficient.

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