Everyone has heard of a corporation’s obsession with taking care of the “bottom line”. But few are familiar with the modern take on this concept, the “triple bottom line”. The triple bottom line consists of the “three Ps” of people, profit, and the planet. This concept is the future of business.
This philosophy is used as a tool to guide a leadership team in the identification of what success looks like in the firm. Instead of focusing solely on financial profits, the triple bottom line proposes the idea that a business can focus on maximizing profits, creating a positive culture that benefits individuals personally, and leaves a positive impact on the planet. Organizations are increasingly adopting versions of the triple bottom line due to who their employees and potential customers are.
In Measure What Matters John Doerr writes about the idea of how success is driven through measuring what matters, because what gets measured is what gets done. This approach from Doerr is the basis for my beliefs in why performance measurement is so important. Deciding what gets measured aligns directly with the triple bottom line. As the world progress through the 2020s, the triple bottom line will have an increased presence and corporations need to focus and be prepared to measure the triple bottom line if they want to be successful long-term.
The Millennial and Generation Z generations made up approximately 47% of the population in 2021. These generations are highly motivated by having an individual purpose which influences where they work and which businesses they interact with. Businesses run by people from these generations are focusing on how they can create goals that have similar alignment to the triple bottom line. Businesses that may not be led by people from this generation still understand that in order to attract the customers that they want, they need to make certain business decisions.
Erik Angus 