Transitions: 1 to 5 Bottom Lines

Transitions: 1 to 5 Bottom Lines

When you look at your firm’s P&L, how many bottom lines do you see? One, right? In this episode, David and Justin discuss the transition toward multiple bottom lines and the impact that has on businesses, employees, the environment, and more. Here are the notes from the show:

  • Business used to be solely focused on the financial bottom line and it was profit at all costs. Financial performance is still critical; but it’s no longer the only measure of organizational success.
  • Because businesses are now more interconnected than ever, there are many more “stakeholders” to serve in order to survive and thrive.
  • Digital technology and the transparency it creates has been a catalyst for this change.
  • The new 5 bottom lines are:
    • Mission/vision/values
    • Employees
    • Customers
    • Environment
    • Capital
  • Consider the “parable of the bigger barns” and the “parable of the stewards on assignment” from Jesus

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