Means and Ends

We believe (most of us anyway) that the ends don’t justify the means. So we (rightly) place emphasis on the means we choose. But there is a flip side of going overboard with that approach too: you may never reach your goal! And no, it’s not because we followed the rules while everyone else was breaking them.

I realized this aspect when I read this quote from over 30 years ago by the CEO of a textile company called Indian Head Mills:

“The objective of our company is to increase the intrinsic value of our common stock. We are not in business to grow bigger for the sake of size, nor to become more diversified, nor to make the most or best of anything, nor to provide jobs, have the most modern plants, the happiest customers, lead in new product development, or to achieve any other status which has no relation to the economic use of capital. Any or all of these may be, from time to time, a means to our objective, but means and ends must never be confused. We are in business solely to improve the inherent value of the common stockholders’ equity in the company.”

Note that the CEO is not saying let’s cheat or swindle or break the law to maximize share price. Rather, he is pointing out the dangers of getting married to the means: we risk continuing with those means even after they have stopped working. And risk sticking to those means even after better, faster, more efficient (and yes, perfectly honest) ways come up.

So yes, it is necessary to keep our eye on the goal, and not get overly attached to the means. Too much of anything is bad; including too much emphasis on the means instead of the ends.