Integral Business I: Short-Term and Long-Term

For the purpose of this blog and post, business is defined as any operation creating capital increase. The hub of a business is making money. This, of course, doesn’t mean that businesses can’t do other things, as they both do and need to – look for a future post: Penta Bottom Line. This simply means that the creation of new capital is the generalizing principle for all things defined as business.

The core intention of this blog is to illustrate what an integral business is, how it operates, and how it is created. My assumption is an integrally framed business will ultimately be more profitable and sustainable (meaning: existing for a longer period of time) than a business that is not.

Businesses typically focus on capital and profit. This makes sense given that business’ organizing and general principle is generation of new capital; however, in our contemporary world with stockholders and stakeholders operating at multiple levels, this has come to mean consistent quarterly increases with solid strategy reaching generally about three quarters out.
An integral business considers many different things as essential to both its existence and profitability. Short-term profit growth is important, as is long term. There are many examples of individuals and organizations that have made decisions that boosted short-term increases, but were ultimately detrimental in the long-term (both to profit and sometimes the viability of the organization).

I recommend that organizations visionize and strategize ten years forward. I understand that ten years is a very long time. Things change rapidly in this world: the market, technology, governments and law, generational preferences in the workforce, social values, and the environment. However, with the assistance of forecasting, intuition, and highly developed leaders and strategists, a ten-year vision and strategy is not simply possibly, but functional and necessary.

Visions and strategies are not fixed, concrete things. They are meant to be dynamic, adjustable, and molded with the feedback of the market and further insight. Though they adjust over time, vision and strategy becomes the guide for every decision made in the present moment. Each decision for profit in the present is measured against a ten-year vision and strategy, and the evaluation considers both short-term and long-term impact (imagine if Enron did this).

An integral business works dynamically in the present while always keeping its sight ten years forward. The relationship and tension between the present and the future (while considering the past) more greatly enables a business for present and future profitability.