Measuring in centuries

Since the Industrial Revolution, the default mindset has been to optimize profits via equipment & human resources.

Milton Friedman, Nobel Prize winning economist, famously wrote in the 1970s: “there is only one social responsibility of business, to use its resources and engage in activities designed to increase its profits…”

Friedman’s theory of capitalism has reigned supreme for many decades exacerbating short-term, finite thinking.  Many companies play this game of optimizing current profits in five-year increments as if it’s the only way to build a business. It’s a common game with a familiar song of doing more with less. It’s a seductive game where only a handful of people win enormously.

In the 1950s the average lifespan of companies was 60 years. Today it is less than 20 years. It's no surprise the average lifespan continues to decline. Companies are simply not being built to last.  

I believe there is another way. I believe there’s a different song to sing and a different game to play.

What if the time horizon for institutions was pushed way beyond the next couple years?

Imagine a business measuring in centuries.

A business measuring in centuries is pointing toward the hardest work of all in business. Steve jobs shared: “The hardest work in business… [to] build a company that will stand for something a generation or two from now.”

Measuring in centuries forces an organization to refine its focus toward what really matters: RELATIONSHIPS.

It’s not a rush to extract value. It’s an intentional perspective to provide regenerative experience for ALL stakeholders (teammates, customers, vendors, community, & shareholders) in the business.

Measuring in centuries allows for the journey of the business to not be a race.

Time can be part of the business equation.

Humanity can be part of the business equation.

Measuring in centuries brings forth the magic of humanity.

Centuries is a unit of measure of a steward. It’s a unit of measure focusing on making things better for those who come next. It’s not about extracting as much value in the brief moment we are on earth. It’s about making it a little bit better every day.

Measuring in centuries is an act of love because it requires you to be in service to something so much larger than yourself.

May we leverage a time horizon that others cannot fathom to build a company that will flourish for generations to come.

Onward,

Matt