The Goal

54

the organization deliver a bigger net profit this year at the ex- pense of net profit in years to come (don't fund any RD, for instance; that kind of thing). They can make a bunch of no-risk decisions and have any one of those measurements look great while the others stink. Aside from that, the ratios between the three might have to vary according to the needs of the business.

But then I sit back.

If I were J. Bart Granby III sitting high atop my company's corporate tower, and if my control over the company were se- cure, I wouldn't want to play any of those games. I wouldn't want to see one measurement increase while the other two were ig- nored. I would want to see increases in net profit and return on investment and cash flow-all three of them. And I would want to see all three of them increase all the time.

Man, think of it. We'd really be making money if we could have all of the measurements go up simultaneously and forever.

So this is the goal:

To make money by increasing net profit, while simultane- ously increasing return on investment, and simultaneously in- creasing cash flow.

I write that down in front of me.

I feel like I'm on a roll now. The pieces seem to be fitting together. I have found one clear-cut goal. I've worked out three related measurements to evaluate progress toward the goal. And I have come to the conclusion that simultaneous increases in all three measurements are what we ought to be trying to achieve. Not bad for a day's work. I think Jonah would be proud of me.

Now then, I ask myself, how do I build a direct connection between the three measurements and what goes on in my plant? If I can find some logical relationship between our daily opera- tions and the overall performance of the company then I'll have a basis for knowing if something is productive or non-productive... moving toward the goal or away from it.

I go to the window and stare into the blackness.

Half an hour later, it is as dark in my mind as it is outside the window.

Running through my head are ideas about profit margins and capital investments and direct labor content, and it's all very conventional. It's the same basic line of thinking everyone has been following for a hundred years. If I follow it, I'll come to the