Biz has a hole in its soul?
Hamel argues that companies that focus on beauty, justice and truth are more engaging to work for. In short, if the work itself is meaningful for its own sake, rather than for the sake of the bottom line, employees will find greater satisfaction in the workplace.
I read the post yesterday and identified with it immediately. So much so that I started to respond to my friend who was passing it around. But as I formulated my reply, I thought back to one of my favorite workplaces. It was a small retail bike shop with fewer than 12 employees.
When I applied for a position with the shop, I sat down for an interview with the owner and the manager. The owner asked me, "Why do you think we're in business?"

Barely out of high school, I managed some bull shit like, "I, I don't know, uh, further the benefits of cycling. It's good exercise and cleaner than driving," I was interrupted by the owner before I could finish.
"Wrong. We're in business to make money." He said.
Some how, I got the job and over the next three years, I learned from the shop owner many lessons about business. And I loved working there, not just because it was a bike shop and I loved bikes. True I had many friends who worked there too, but that wasn't the only reason I loved working there. I also loved the owner's appetite for profits. He looked at every aspect of the business with a focus on maximizing profits and he was as transparent about it every day and during every transaction as he was during my initial interview.
We had a big chart on the wall that showed the total sales and profit margins month-by-month. We all worked hard to keep those numbers trending in the right direction. We met regularly to discuss how the business was faring and the owner always pushed us to maximize profits. He celebrated our successes and rarely let us get away with dud sales.
One block north of our store was another local bike shop that had quite the cult following. They were known for giving shit away in order to close the deal. As a result, they sold a lot more bikes than we did. But their margins couldn't compare.
One winter day, I had a couple walk in looking to buy two bikes, helmets, locks, clothing, bags, gloves, lights, etc. You name the bike accessory, they were shopping it. I was making great progress on what would have been a multi-thousand dollar sale during the dead of winter. Towards the end, when I as adding everything up, the couple started negotiating on price. Something we didn't do in our shop.
They told me they were going to walk if I didn't throw in bike locks or something similar. I told them I'd have to speak to the owner about it. I went to his office and explained the situation. He told me to go back to the floor and close the deal without compromising on price.
But the couple would have none of it. They walked and were not pleased with the owner's inability to compromise. I wasn't too pleased either. I knew that we'd been dead for nearly a week. We were bleeding cash in overhead and payroll.
The owner came down and asked me what happened. I told them they walked. I couldn't close the deal. He was disappointed about that. I was disappointed that his inability to give away $40 resulted in a few thousand dollars walking out the door.
The owner looked at me and said, "Oh well, we'll sell all that stuff in time and at full price and with an excellent profit margin. We'll do less work for more money."
It was the opposite of the Wal-Mart approach. Instead of dealing on high volume, low margin transactions, we worked on lower volume and much higher profit margins. We worked less hard for more money and for the most part, we loved it.
Part of it was the fact that it was a bike shop and for the most part, we all loved bikes. Part of it was that it was a close-knit shop. Part of it was the owner's transparency about maximizing profits and using each day to coach his staff towards meeting that goal.
Eventually the owner hung it up, retiring in his 40s, selling the shop to the manager. Who subsequently rejected the previous owner's philosophy and ran the enterprise into the ground.
Author's note:
I received an email from the owner of the shop. I was somewhat surprised. What I post here I do mostly for me, confident in the knowledge that no one is reading. The owner wanted to point out one factual error; namely that the shop up the street from us never came close to selling as many bikes. Go figure. They played the bartering game and still couldn't really compete.










