Passing The Baton: One Business Strategy Over All Others

Passing the Baton features a series of “letters” sent from Terry Corman, outgoing CEO of Firehouse Image Center (Indianapolis, Indiana) to his son, Ted Corman, who will be leading the business into its future. This series of communiques offers thoughtful views of a business undergoing generational transition, glimpses of the company’s history, and strong views to the realities of leadership. 

Among the duties for which I held myself accountable, business strategy items were always near the top of my action item lists.  

(I always worked from lists. More on that in a couple of weeks.) 

It was my habit as I traveled, to pick up the latest Harvard Business Review to learn the latest management thinking. Over the years, one article stands out from the rest. It was on business strategy. I have never forgotten it — the author was Michael E. Porter.  

Porter outlined five forces that affect the strategy of a business, but here is his key phrase: “There is only one business strategy, and that is ‘high profitability’.” 

In the future, you will need to define, the ‘go-to-market’ strategy of the products and services the business creates. New products will be added, and legacy products will be dropped. Don’t hang on to money losing products just because they have been around a long time.  

I will never forget the deep concern when our boss (your mom, my wife) told us we were closing down our original/legacy photographic product line. It still had a large revenue stream at the time , but she looked at the margins and the labor numbers, and she made a tough decision. It was the right call. We never looked back.  

Be prepared to make those calls yourself, now.  

Your actions should always be to create the most profitable business you can. That’s how we protect the jobs of the great people of Firehouse.