From a single bottom line perspective, growth is financial and limitless. The only way to grow is up, and as quickly as possible. Revenue maximization, market share, and industry leadership is the guiding mindset.
Growth eventually reaches a threshold though where the next unit of growth provides less value than the previous unit did. In economics, it’s called the law of diminishing marginal utility. The growth curve basically plateaus out. If you’re bigger than everyone else, being just a little bigger makes little difference.
If growth isn’t just about going upwards, then what is it? From a triple bottom line (TBL) perspective, growth is about going outwards, spreading horizontally rather than vertically. For example, instead of asking, “how much did the company grow financially last year?”, you might ask, “how satisfied were my employees, customers, and vendors?” Instead of increasing an already high profit margin, you may look at increasing training or volunteer hours, or recovering costs from energy savings.
More specifically, if you’re an electronics manufacturer with huge surpluses, look at your supply chain and check your recyclability, quotas and waste production. If you’re a grocery chain with Whole Foods-like potential, double-check your food sourcing and look for sustainable products you can put on your shelf.
In the pursuit for greater financial growth, economic impact on employees, community and environment often takes the back seat. The essence of TBL is to provide checks and balances, not put things on hold, but to pay forward the benefits we’ve worked so hard to accrue. It’s a mentality that guides us down a path where people and planet are given some, if not equal, consideration along with profit.
Growth eventually reaches a threshold though where the next unit of growth provides less value than the previous unit did. In economics, it’s called the law of diminishing marginal utility. The growth curve basically plateaus out. If you’re bigger than everyone else, being just a little bigger makes little difference.
If growth isn’t just about going upwards, then what is it? From a triple bottom line (TBL) perspective, growth is about going outwards, spreading horizontally rather than vertically. For example, instead of asking, “how much did the company grow financially last year?”, you might ask, “how satisfied were my employees, customers, and vendors?” Instead of increasing an already high profit margin, you may look at increasing training or volunteer hours, or recovering costs from energy savings.
More specifically, if you’re an electronics manufacturer with huge surpluses, look at your supply chain and check your recyclability, quotas and waste production. If you’re a grocery chain with Whole Foods-like potential, double-check your food sourcing and look for sustainable products you can put on your shelf.
In the pursuit for greater financial growth, economic impact on employees, community and environment often takes the back seat. The essence of TBL is to provide checks and balances, not put things on hold, but to pay forward the benefits we’ve worked so hard to accrue. It’s a mentality that guides us down a path where people and planet are given some, if not equal, consideration along with profit.