272. The Profit Problem

What happens when your business starts treating profit as the goal instead of the indicator?In episode 272 of At The Table, Pat and Cody challenge one of the most common assumptions in business: that maximizing profit should be the goal. They argue that profit is essential, but when leaders treat it as a company's purpose, they risk harming customers, employees, products, and culture. Leaders are invited to decide what is enough, invest in what matters, and build organizations that create value beyond the bottom line.Topics explored in this episode:(00:00) The Assumption Behind ProfitPat introduces the problem with assuming that maximizing profit is the goal of business.Cody points out how natural that assumption feels, even for people who have never studied business formally.(03:00) Winning Without Running Up the ScorePat compares business to football, explaining that the goal is to win, not to score as many points as possible.Cody expands the analogy by explaining why eliminating competition can hurt innovation, customers, and the overall game.(07:27) Value Beyond the SpreadsheetCody distinguishes between maximizing profit and creating value for customers, employees, and the broader organization.Pat explains why some business decisions, like giving away bread at a restaurant, may create long-term value even if they do not show up neatly on a spreadsheet.(10:29) The Damage of Extracting Too MuchPat describes how companies can burn goodwill with customers when they constantly squeeze them for more revenue.Cody and Pat discuss planned obsolescence, AI, and the danger of replacing human value with decisions driven only by financial gain.(15:48) Purpose, Ownership, and EnoughPat connects the conversation to The Advantage and the importance of knowing why a business exists.Pat and Cody explain how The Table Group has chosen longevity, peace, and a healthy work experience over chasing maximum growth and profit.This episode of At The Table with Patrick Lencioni is brought to you by The Table Group: www.tablegroup.com. We teach leaders how to make work more effective and less dysfunctional. We also help their employees be more fulfilled and less miserable.Subscribe for more content from Patrick Lencioni @PatrickLencioniOfficialStay Connected with Patrick LencioniLinkedIn: https://www.linkedin.com/in/patrick-lencioni-orghealthInstagram: https://www.instagram.com/patricklencioniofficialTikTok: https://www.tiktok.com/@patricklencioniofficialX: https://x.com/patricklencioniAt The Table with Patrick LencioniApple: https://tablegroup.me/appleSpotify: https://tablegroup.me/sptfyYouTube: https://tablegroup.me/youtubeBe sure to check out our other podcast, The Working Genius Podcast with Patrick Lencioni, on Apple Podcasts (https://workinggenius.me/apple), Spotify (https://workinggenius.me/sptfy), and YouTube (https://workinggenius.me/wgyt).Let us know your feedback via podcast@tablegroup.com.This episode was produced by Story On Media: https://www.storyon.co.