The following are primarily extracts from the final chapter in Ian Berry’s (our Managing Director) book Increasing Profits Without Hurting People, published in 2002. Ian is the originator of the five-fold bottom line concept.
As your performance partner we work with you to make these generic concepts work for you in your own way.
Towards a Five Fold Bottom Line
© Ian Berry 2002 All rights reserved
In an excellent book, ‘Intelligent Leadership’, Alistair Mant says “The evidence suggests that confidence in political leaders is diminishing, to the point where the democratic process itself is threatened. Confidence in the morals and capability of business leadership has also diminished...It doesn’t stop there. Confidence in public administrators, trade unions, senior military officers, church leaders, teachers, and even parents has been shaken by the manifest failure of all kinds of institutions to cope intelligently with change.”
I agree with this author’s assessment. A major reason for this crisis of confidence is a biased focus on economics. The ultimate measurement it seems is how much it costs or how much we make; and people are suffering as a consequence.
Organisations must make economic profits; however, to increase profits without hurting people we must broaden our focus to include other bottom lines.
A few years ago I was a member of a Business SA lunch time audience who listened intently to futurist Richard Neville espouse the value to organisations of pursuing a ‘triple bottom line’. This is the traditional way of assessing an organisation’s performance, which is economic prosperity, plus two more recent ways, environmental sustainability and social responsibility.
The discussion around the table that day was a mixture of optimism and pessimism. For some, making money and being socially responsible was seen as impossible at worst and difficult at best. For some, the very idea of being able to maximise monetary profits while at the same time caring for the environment, was seen as desirable yet very difficult to achieve.
For others, the ‘triple bottom line’ had strong appeal; indeed some were already pursuing it.
I left lunch that day deep in thought. Organisations must be economically prosperous in order to grow. Is it possible to make money and care for people and the environment at the same time?
My answer has become a resounding YES. Profit and people do not need to be opposing forces and neither do profits and caring for the environment.
My research has lead me however to the conclusion that success with a ‘triple bottom line’ will not be enough for us to restore our confidence in our leaders. Two further bottom lines are required for the very survival of the human race. These are spiritual validity and universal harmony.
The Five-Fold Bottom Line
Economic Prosperity: Making monetary profit is essential for personal and business sustainability and growth; and for our being able to choose our lifestyle now and in the future.
Social Responsibility: All organisations are made up of individual people. The cost, and not just economically, of unhealthy and unhappy workers is probably immeasurable. Therefore every organisation has a role to play in helping to prevent social ills. Businesses must be responsible members of the communities in which we operate. Corporate citizenship is now much more than a sneaky way to promote our brands.
Environmental Sustainability: Once, most of us turned a blind eye to waste disposal and a myriad of other environmental disasters. Thankfully most of us no longer do. As the simple weekly collection of recyclable items in many Australian neighbourhoods demonstrates we can save our planet if we work together. All businesses have a clear obligation to obtain and dispose of resources in ways that protect and sustain our environment.
Universal Harmony: We are living in a global village. The Internet in particular makes it possible to do business with almost anyone, almost anywhere, almost any time. We are also at war in many places despite the obvious fact that war never leads to peace. As businesses we must ensure that what we make, sell and deliver does not, in any way, contribute to local or global disharmony. Organisations increasingly have a role to help bring about and sustain universal harmony.
Spiritual Validity: In survey after survey what we repeatedly find is that people want, above all else, to be genuinely valued. For a business this takes much more than being socially responsible. At no previous time in history has there been such a search for meaning. Many people are searching outside of the church for spiritual answers. The workplace can no longer be a place where people are treated as mere commodities, or God forbid, resources.
We must build workplaces that are uplifting for the human spirit. A bottom line that honours and values the spirit of all people leads to greater performance in all other areas. Organisations who ignore this do so at their peril.
These five bottom lines must be our targets.
What We Must Do
In ‘The Coach’ Ric Charlesworth says, “Leading can be as difficult as being behind. The error that competitors make in both these situations is to think about the outcome rather than paying attention to what they must do for the rest of the game to secure the desired result. Attention to outcome over process can be fatal.”
In the preceding chapters we have explored the processes for increasing profits without hurting people.
In chapter 1 we discussed the Uniquely Human Characteristics of Choice and Responsibility. Both are crucial to a five-fold bottom line.
- We are responsible for our response to whatever happens to us
- We are responsible for changing ourselves, never other people
- We are responsible for being the best we can be, i.e. our Personal Magnificence
- When we have proven we can be responsible we must be allowed the authority.
In chapter 2 we discussed balancing effective leadership with efficient management. The seven leverage laws of leadership are particularly vital to a five-fold bottom line.
- Put Others First
- Listen With Heart
- Build Self Esteem
- Agree on Performance Parameters
- Be Present in the Moment
- Coach for Competency
- Mentor for Commitment
The five mechanics of meaningful management are also essential
- Have Systems for Managing Internal and External Customer Relationships
- Have Meaningful Performance Management Systems
- Goal Achievement Plans
- Agreed Problem Solving and Decision Making Processes
- Accurate and Up To Date Standard Operating Policies, Procedures and Practices
Of equal importance to achieving a five-fold bottom line are the 14 critical success factors for building great relationships and the 4 essentials for the high-performance fulfillment of tasks as discussed in chapter 3.
Relationships
- Shared Purpose
- Shared Values
- Two-way Communication
- Respecting Other People’s Space
- Being Encouraging and Supporting
- Trust
- Non Judgement
- Giving Others Our Time
- Humour
- Giving Others Recognition
- Honouring
- Energy
- Ability and Willingness To Share
- Friendship
Tasks
- Shared Goals
- Shared Strategies
- Measurements
- Meaningful Meetings
Choice and responsibility, effective leadership balanced with efficient management, and understanding that great relationships are essential for optimum performance in the completion of tasks, lay the foundations for putting internal and external customers first, which is the fourth ingredient for achieving a five-fold bottom line and discussed in chapter 4.
When we put all customers first, accepting that they are not always right, when we meet their needs, expectations and desires on a consistent basis, then our customers reward us with their loyalty.
In chapter 5 we discussed the fifth essential to achieving a five-fold bottom line, building champion teams based on personal magnificence.
Being clever won’t do it. We must be wise by being: Spiritually Alive, Universally Aware, Emotionally Healthy, Mentally Alert, and Physically Active.
We attain and grow our wisdom through
- Competing With Ourselves
- Cooperating With Others
We enhance our wisdom through
- Confidence: the result of our commitment and our competency combining together effectively.
- Forming Partnerships With others
In chapter 6 we discussed the sixth essential to achieve a five-fold bottom line, profiting from powerful communication without losing from information overload.
7 ways to become a powerful communicator
- Be a Great Listener
- Communicate With Passion
- Always Be Clear On Purpose
- Personal Magnificence
- Being Fully Present Wherever We Are
- Be a Possibility Communicator
- Be Always Looking For The Way Forward
4 guards against information overload
- Discard Information That Isn’t Relevant To Purpose
- Know the Difference Between Communication and
Information Sharing
- Present Information In The Most Interesting Way Possible
- Invest Wisely In Time
In Increasing Profits Without Hurting People I wrote about the 30 roles the modern leader / manager must fulfill. Here are the five roles of particular importance to achieving a five-fold bottom line.
Money Manager
To not be fully conversant with money matters today in business is a recipe for disaster.
The effect of the recent introduction of the goods and services tax system (GST) in Australia has driven many businesses to the wall. Not so much the system but how managing money really works. Many small businesses used to running things from the cheque book can no longer do so.
Today understanding cash flow is a must for all business owners and leaders, indeed more and more for everyone.
Many authentic leaders are adopting the open book management approach and teaching employees to understand profit and loss statements and balance sheets and to have a working knowledge of how managing money works. No longer is what happens to the money a secret shared by the select few.
The Role of Money Manager is both a ‘lead by example’ and a coaching and mentoring one. In the Global Village in which we must operate, understanding the complexities of the money system is a necessity if we are to build and grow thriving enterprises.
Social Activist
The equity entry of women into the workforce awakened the sleeping social conscious. Childcare became an important item on thinking people’s agendas, maternity and paternity leave were born, and the authentic leader must now take a myriad of other social aspects into consideration.
The decline of the union movement means the protection of workers rights falls squarely on the shoulders of leaders as well as individuals.
No one with any wisdom will ignore this because to do so is to invite all of the profit inhibitors mentioned on pages 3 and 4 into the workplace, meaning less than desired performance.
The authentic leader must be a social activist, acutely aware of and actively engaged in all the social issues that confront humanity, and must be visionary in foreseeing solutions to issues not even thought of today.
Environmentalist
Very few scientists these days believe we humans are not responsible for global warming. As I write, many countries are coming together to tackle environmental issues. The notable absentees cannot yet find a way to be environmentally responsible and still achieve other goals such as employment. Leaders who are not Environmentalists will in my opinion not be leaders for very long.
Harmoniser
Harmony matters. When harmony between people is absent, optimum performance is not possible. Authentic leaders are forever encouraging and supporting others to find harmony, the balancing point between opposites or opposing forces. To be a Harmoniser requires us to live in harmony with ourselves and therefore be a living example to others.
Valuer of Spirit
By spiritual I mean a recognition that there is something that is a part of all of us that is more than just us. As soon as we label whatever this is however, arguments begin. The Great Mystery does me, but I would be just as comfortable with Ralph. Do I believe in God? Yes, but more than believing, I know there is a part of me that includes you and everything else that exists. The Authentic Leader must be a valuer of all matters of spirit.
There is not much debate these days that we all have a soul, that part of us that is not just more than us but also that part of us that is eternal. I was raised in the Christian tradition. Today I follow no particular religious or new age path. I have respect for whatever path may be yours. I must say I have little time for anyone who says their way is the only way.
When I first began to make my living as a speaker and optimum performance coach I talked a lot about soul and spirit from my perspective. Most people thought I was off my rocker; indeed I lost business because some thought I was a tad loopy. Today, to not talk about soul in some way is almost negligent. People are asking the deep and meaningful questions more than ever and expect authentic leaders to have a perspective and to be able to converse in meaningful ways.
The role of Valuer of Spirit requires us to think deeply about the inner aspects of life, and to be understanding and have empathy for our employees exploring these matters. We must be able and willing to support others as they struggle with life’s big questions and to help them find meaning in an increasingly complex and chaotic world.
Success Stories
In the ‘Age of Unreason’ Charles Handy says “The changes which we are already seeing in our lives, and which we will see more of, have their origins in the changes in our workplaces. Work has always been the major influence on the way we live.”
When your workplace becomes an organisation committed to achieving a five-fold bottom line, please write to me.
I am making a list. One day I would love to write and acknowledge your success.
Ian Berry wishes to acknowledge the outstanding work of John Elkington, the originator of the triple bottom line concept and the co-founder of Sustainability, a strategy consultancy and independent think tank specialising in the business risks and market opportunities of corporate responsibility and sustainable development. For further information visit www.sustainability.com
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