The Triple Bottom Line

  

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Last time, I talked about what ENRON did wrong with regards to Organizational Effectiveness (OE).  Now I have the privilege to refer to a company that is doing it right (in my humble opinion).  The Great Lakes Brewing Company has impressed me to no end with not only their business model, but also the dedication to their employees, environmental awareness, and community involvement. 

I would never have even taken a microbrew beer company seriously had it not been for the class assignment.  I can honestly say that since learning so much about GLBC, I have a new appreciation for how an organization can align its goals to achieve the triple bottom line (TBL) of “People, Planet, Profit”, and do so in a way that provides one of my favorite products – beer!  In keeping with the class theme for eleven word descriptions espoused in my Critical Thinking class:

Now don’t get me wrong; I have never been one to throw in with what I would have once considered to be a liberal agenda, but I believe that the TBL is the equation for success in new millennia businesses.  Even the 150-year-old company where I work now has an Environmental Stewardship program, which shows that you can teach an old dog new tricks.  I realize the TBL is not the only measure of OE, but it definitely focuses on three of the areas recommended by articles I have read for measuring OE.  What I thought was a liberal philosophy may just be a recipe for success.

Of course, you may not be ready to completely accept this Triple Bottom Line philosophy.  It will require some critical thinking, deep reflection, and a couple of beers.  I recommend the Conway Irish Ale.

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One of the key areas that a critical thinker can evaluate a company is how effective it is at living up to its mission statement.  The premise, of course, is that the mission statement is worthwhile.  A mission statement is a reflection of the values of the company and is supposed to help guide the goals they pursue.  In ENRON’s case, as documented in the film, “Enron: The Smartest Guys in the Room”, neither was true.  The mission statement focused on subjective concerns of respect, integrity, communication, and excellence, and on how they were going to treat each other.  The goals were apparently to make everyone like them.

There are many articles on the internet that one can read on all the problems that led to the collapse of ENRON (and even counterpoints).  To me however, the reality of the overall issue is that they actually followed an unwritten cultural mission statement inferred:  “We will make gobs of money at any cost regardless of ethics.”  The rest was just window dressing.  Internal Traders, employees, investors, and virtually everyone else involved seemed to be perfectly content with the lack of transparency as long as the dollars kept rolling in.

I believe that in order to be effective, a company should formulate a mission statement that establishes a clear, measurable, and attainable goal that can be easily understood and assimilated by the members of the company from top to bottom.  SMART goals should be used by all companies to formulate these mission statements, then checked and reported against the goals regularly to ensure they are on track and not headed for disaster.

The Enron debacle probably would not have been averted using SMART goals, but it might have given investors and employees a common ground to start from.

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A Bright Idea

I attended a ‘Green’ presentation recently and was told among other equally well-researched information that if I could become a millionaire if I could develop a low cost, low energy alternative to the once revered compact florescent light (CFL) bulb.  Apparently, CFLs have fallen out of grace because of the trace amounts of mercury contained inside each bulb.  I felt bad for her though, since this feat has already been accomplished with the production and sales of LED lights.  Her challenge made me think about what actually motivates the general population to be ‘green’.

There are only three major reasons that I have come up with to make lifestyle changes in an effort to be more green.  The first is the position held by some, which comes down to doing it because it is the right thing for future generations.  There is a tiny portion of the population that will do it for this reason alone, and the number gets smaller if it is inconvenient in any way (recycling anyone?).  The second reason is that it is mandated by law.  Limits on emissions would be a good example here.  The third reason, and I believe the one with the most possibility for success, is to make green living economically advantageous.  Advocates for the first position would be wise to consider the last.

If you think about it, there are plenty of advantages to green living already.  Our air is cleaner in most places due to reduced emissions.  Fuel and utilities cost less today than they would if the consumption was higher from inefficient electronics, mechanics, and insulation.  Staying out of jail is a good reason too.  I can even say that there is that warm and fuzzy feeling when you think about how your choices can positively affect future generations.  Ultimately, the best way to convince consumers and businesses that they should do so is to show them the fiscal benefits (positive) rather than using scare tactics or shame (negative). 

What about you:  What inspires you to be green?  Is it a well-reasoned analysis or a faith-based motivation?  What is it going to take to convince you that you should reduce your evil carbon footprint?  I know what it will take for me…CASH!  As it becomes more financially beneficial to make green choices, I am going to make them.  It follows that it will happen with the general population as it becomes affordable as well.

For more info on cost savings (and photo credit), check out this excellent link: Synergy Lighting

Effective Communication improves Organizational Effectiveness

I am a visual person.  I believe that in most cases, most people absorb written or verbal information better when it is accompanied by an amplifying picture or graphic.  Words by themselves often get lost in the translation (so to speak) when we are trying to convey important information.  A picture or graph can be the difference between blank stares and nodding affirmation.  When one is communicating to an individual, a group, or an organization, the words used should be simple and the pictures meaningful.

For example, I recently had the pleasure of presenting my team’s change and release schedule to senior management.  In the past, this information was provided in the form of spreadsheets and calendars, but I created a simple graphic that explained it in a single page.  I witnessed the looks of confusion change to understanding in a matter of seconds of displaying the picture.  There is not anything special about this other than how my audience could now easily see the interrelationships between the different aspects of the release schedule.  We were then able to easily collaborate and find ways to improve the overall schedule and even found some time for additional testing that had been requested.

The point of this is that, as managers, we must be able to communicate effectively.  The effective use of appropriate visual aids is critical in helping others more clearly understand our perspectives, challenges, goals, and solutions.  But it doesn’t need to stop there; ask for the amplifying images yourself the next time someone is trying to explain a complex issue to you.  Together, you and your colleagues, friends, and team members can improve your organizational effectiveness by learning to be more effective communicators through the use of visual aids.