Why Service is the Key to Huge Profit in Business

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It is ironic. The more one gives and serves, the more one receives and earns. In business, the more the firm is focused on how to serve the public, on how to provide consumers with the best product and service, rather on how to maximize profit, the higher is the probability that it would grow and attain huge profits. As Henry Ford would say:“A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.”

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Yes, huge profits would follow if consumers feel that they have been served well by the company. I'm sure that Steve Jobs' primary concern during his stint at Apple is not just to make the tech company the most profitable computer firm and number one brand in smartphones and other computer gadgets. I think Jobs is more preoccupied with innovation and providing the greatest service and satisfaction to Apple's customers rather than achieving the highest profit. Huge profits experienced by the company is only a consequence or byproduct of Apple customers' satisfaction, loyalty, and gratitude to what they received from the tech firm!

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Preoccupation with Profit and Its Unintended Effect

Too much preoccupation with profit can lead to an unintended effect.The opposite often happens if the company is too concerned with achieving ambitious targets and huge profits: It can lead to loss of sales and earnings as the company neglects to upgrade its production facilities, empower its human resources, and enhance its products and services just to reach profit forecast. Some companies would even go to the extent of reducing production and labor costs heavily which cripples innovation, reduces the firm's capacity to do research and product development, as well as induces unrest in the labor force.

Service in Business

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Service is a complex term. But service in business would simply mean that the firm mobilizes its human and non-human resources to achieve the highest customer satisfaction for their clients, providing them with the best product or service possible to satisfy consumer needs! To achieve this end, the company must not only improve production facilities but also empower its managers and employees with material, psychological and social support in order that they become productive and innovative. Unreasonable cutting of production and labor costs to increase profit can become counter productive in the long run as resources to improve the company's products and services in order to serve the customers run dry.

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The best performing companies are usually business firms which are committed to serve and empower their employees and managers with the best human workplace and employment benefits in order they become more productive and creative to serve their customers. Google, named for the fourth consecutive year as the best company to work for by Fortune magazine, leads in this area. And one cannot deny Google's profitability through the years. This year, this search giant, for instance, said that its "revenue for the quarter rose 22% to $16 billion from $13.1 billion a year earlier. It surpassed analysts' revenue forecast of $15.6 billion, according to S&P Capital IQ" (Winkler & Barr, 2013). Of course, there are other factors that influence Google's profitability. But the bottom line is: huge profits as well as great products and services patronized by loyal customers, can only come from companies who care, trust and support their employees to deliver the best service to the public!

Reference

Winkler, Rolfe & Barr, Alaister. (2013). "Google Profit Engine Rolls One". Retrieved from http://online.wsj.com/articles/google-reports-22-revenue-growth-1405628219.

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