The purpose of an organization is to enable ordinary humans beings to do extraordinary things.
Peter DruckerRead
Profit is not the purpose of a business, but rather the test of its validity
Interpretation
What this quote means
Profit serves as a measure of a business's validity rather than its primary goal.
This quote by Peter Drucker emphasizes that the main aim of a business should not solely be to make money, but rather to create value and serve a purpose. Profit should be viewed as an indicator of whether a business is fulfilling its mission effectively, rather than the driving motivation behind its existence.
Themes
ProfitBusinessValidityPurposeValue
In practice
Example use cases
This quote can be referenced in a business seminar to inspire entrepreneurs to focus on purpose.
More from Peter Drucker
All quotes βIn the Western tradition, we have focused on teaching as a skill and forgotten what Socrates knew: teaching is a gift, learning is a skill.
Peter DruckerRead
We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn.
Peter DruckerRead
The basic economic resource - the means of production -_x000D_ _x000D_ is no longer capital, nor natural resources, nor labor._x000D_ _x000D_ It is and will be knowledge.
Peter DruckerRead
Unless commitment is made, there are only promises and hopes... but no plans.
Peter DruckerRead
The strength of the computer lies in its being a logic machine. It does precisely what it is programed to do. This makes it fast and precise. It also makes it a total moron; for logic is essentially stupid.
Peter DruckerRead
Similar quotes
The key to branding, especially for smaller firms, is to focus on a limited number of issue areas and develop superb expertise in those areas.
Philip KotlerRead
To make a pleasant and friendly impression is not alone good manners, but equally good business.
Emily PostRead
I suppose Virgin is an unusual brand in that I suspect we're the only 'way of life' brand in the world. We're one of maybe the top 30 best known brands in the world, yet if you look at the other 29, they all specialize in one area. Whether it's Google, Coca-Cola, Microsoft, etc., they all generally specialize in one area.
Richard BransonRead
As a multisport athlete, I was always fascinated with competition and how to win. At HBS and later at the Harvard Department of Economics, I was drawn to the field of competition and strategy because it tackles perhaps the most basic question in both business management and industrial economics: What determines corporate performance?
Michael PorterRead
Marketing is too important to be left to the marketing department.
David PackardRead
Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart. We make it by innovation.
Steve JobsRead