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9. SHIFT 3 - From Traditional Metrics to Triple Bottom Line Measurement

Simon Hague Season 1 Episode 9

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Explore how conscious leaders measure success beyond profit with triple bottom line: people, planet, and profit for sustainable growth.

Simon discusses the evolving concept of measuring business success through the Triple Bottom Line (TBL) approach, which includes Profit, People, and Planet. 

Introduced by John Elkington in 1997, TBL emphasizes that companies need to focus not only on financial performance but also on social and environmental outcomes. 

Simon explores how leading organizations like Patagonia and Unilever integrate sustainability into their core operations. He challenges businesses of all sizes to shift from traditional metrics to TBL, advocating for sustainable practices that honor the well-being of employees, communities, and the planet. 

The episode calls for a commitment to long-term thinking, data-driven decision-making, and the implementation of ESG (Environmental, Social, Governance) frameworks to ensure meaningful, sustainable growth.

What if I told you that your bottom line, your profit line, is only a third of the story or even thinking about quadruple bottom line, only a quarter of the story. What if real success in modern business means measuring not just how much you make, but how well you treat people and how likely you tread on the planet? I'm Simon Hague, and welcome to this week's episode of my Lunch Table where we explore the future of leadership. Thinking consciously one shift at a time. Today we're diving into shift three from traditional metrics to triple bottom line measurements. In other words, how leading organizations are rethinking what success even means. And let's be honest, for decades, businesses mostly answered one question. Are we profitable? But in the world we live in today with climate changes, social inequalities, and increasing stakeholder scrutiny, that does not cut it anymore. So join me as we explore how the most forward thinking leaders are embracing not one, not two, but three lenses of impact that is profit. People and planet. Let's start at the top. The triple bottom line or TBL was first introduced to us by John Elkington back in 1997. It proposes that companies should focus not just on financial performance, but also on social and environmental outcomes. The three pillars to consider our profit. Which still matters, of course, but it's about more than shareholder returns. It's about sustainable economic contribution, things like fair wages, secure jobs, and long-term value creation. We think about people measuring how your organization affects its team, its customers, and the communities it touches. Think diversity, fair labor practice. And psychological safety at work linked in to how well tied into the community are you. Planet. This is all about your environmental footprint. We're talking resources here, energy, efficiency, waste, and of course carbon. But we're not just limited to carbon. Now as we start broadening this out, we are starting to notice we are getting short of. Semiconductors and the water agenda is also now incredibly important. There is a fourth area which we're starting to see coming through, which I refer to at the start. The quadruple bottom line, which also invites us to be really clear on our purpose and the purpose ties into what conscious coaching is about, is helping us to understand. More about what is the purpose behind our business and how are we going to marry the profit people and planet to deliver what the purpose is? Now, I wanna pause on this point.'cause this isn't just about being nice or doing good. Businesses that adopt triple bottom line aren't becoming charities. What they're doing is recognizing the full cost and value of their operations. And when you're measuring it you are managing it well. Because as a saying goes, what gets measured gets managed. So let's move from sort of that gut feel to the data-driven idea and how does this actually work. I. Conscious leaders are moving from gut feel to data informed decisions, right? This isn't theoretical, it's practical. Just like you might track monthly earnings and cash flow. Leaders are also using dashboards that show real time insights into things like emissions intensity employee engagement scores and supplied diversity metrics. Tools like ESG frameworks, environmental, social, and governance, are now standard in many boardrooms and companies are layering. These directly into their strategic management. So if we think about how this actually works, we're starting to realize that sustainability isn't now an afterthought. It's core to a business plan. Let's bring this to this to life with some quick examples of coming to walking this talk. So if we take Patagonia, they're not just making outdoor gear. They're fiercely committed to environmental activism, responsible sourcing, and transparency. They even change their shareholder model to ensure the planet remains a key stakeholder. Or if we look at Unilever. They embedded sustainability in product development, marketing supply chains. They showed it wasn't just a nice idea, it was actually for long-term growth. And you've probably heard about B Corps businesses that have passed rigorous standards for environmental and social responsibility. It's not just a certificate for them. It's actually a mindset about how that business works. These leaders understand that investing in their community in green energy and in. Thinking about how they hire. It isn't just a charitable expense, it's a brand value. It's resilience, it's reputation. So taking on a triple bottom line perspective requires a focus commitment to long-term thinking, strategic planning, and consistent follow through. So why shift from traditional metrics to the triple bottom line? I've spoken about this in the last episode in shift two, but what we're noticing is that the world is now watching what we're doing, your employees care. We're noticing the younger generations becoming more passionate about what we are doing to the commun community and to the planet around us. Your customers care and increasingly so. We are starting to see the investments really care about what you stand for. The Triple Bo triple bottom line is more than just a framework. It's a mindset, a commitment to seeing value in all its forms. So here's my challenge to you. I. Next time we you review your business metrics, ask yourself, did we only measure profit or did we also measure impact?'cause what if your success story wasn't just spreadsheets, but stories of thriving teams, healthier ecosystems, and meaningful, sustainable growth. So there's the challenge for you this week. What can you build into your business? Be it a small business, medium business, large business, whether you're a sole trader where you, whether you are a owner o operator of a business, what can you do to move the dial in a small way? Which will increase your awareness and measurability of ESG and the agenda that goes along with it. This is really important for us to think about as we move our own businesses forward. And even just that shift of dial from you within your activities, we'll make a massive difference. So if you enjoyed today's episode, please follow the podcast and leave a rating'cause it really helps us reach more. And reach out to more people like you. So until next time, keep measuring what matters. And remember real successes. Leave no impact behind.

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