g. What if we, add triple bottom line?
In this transformation, we introduce the concept of Triple Bottom Line into the iBMC.
The central idea behind the Triple Bottom Line is that organisations should evaluate their performance from a broader perspective, including their social and environmental impacts, in addition to their economic performance — rather than focusing on generating profit, the standard “bottom line.”
Thus, economic, social and environmental outcomes are considered as relevant, and stakeholders are rewarded or penalised for achieving them.
The “Cost Structure”, “Revenue Streams”, and “Distribution & Subsidisation” themes are bundled into a larger theme, the “Economic Outcomes”.
The “Economic Outcomes”, “Social Outcomes”, and “Environmental Outcomes” are infused into the iBMC in the encompassing Outcomes and Impacts theme.
Another way to name the themes is based on the 3P, “Profit Outcomes”, “People Outcomes”, and “Planet Outcomes”.
Examples of economic outcomes include; increased sales and margins, improved cost structures, increased asset utilisation, expanded revenue opportunities, and enhanced customer values [Source: Kaplan & Norton].
Examples of social outcomes include; improved livelihood for farmers, opportunities for employment, local SME development, and dignified living conditions.
Examples of environmental outcomes include; optimised sustainable use of natural resources, sustainable conservation and regeneration of productive land.
