On a regular basis we sit down with business leaders to discuss the nature of their business and how they can improve their efficiency, effectiveness, market share, and profitability.
One of the first questions we ask is, “What business are you in, and how would you describe it?” The answers vary from person to person with a range of views on what is – or what should be – emphasized when answering this question.
We usually sit silently as the answer is provided and then pause for effect. Most of the time the question is then reversed as we are quizzed for an objective view of their business, “As a friend to our company, how would you describe our business?”
We always answer their question the same way.
It doesn’t matter what the name of the company might be. Or what the sales volume was last year or this year. It doesn’t matter how many people are employed by the company, or how long they have been in business. We respond to the question the same way in almost every case.
Because the answer expresses a way of thinking about business and will therefore direct how that business conducts itself.
“You are in the people business.”
Everything else flows from this answer. What business are you in?