Social Bottom Line Management

Companies maximise the performance of their
businesses, only when all three bottom lines
(economic, social and environmental) have positive and growing indicators.

Companies are knowledgeable about the management and measurement of their economic bottom line and its indicators.

But…   What about the Social Bottom Line?
How effective is your company’s management of Social Bottom Line?
…And   How is it quantified?

En-Sync has developed a unique approach to the Social Bottom Line Management.

Social Bottom Line Management is:

A set of organisational processes, aimed at continuously increasing the level of economic bottom line of the company. The interests of the stakeholders are matched at the point of equilibrium and the organisational processes maintain the equilibrium to reduce losses of the economic bottom line, which are caused by various social events, with the company’s stakeholders.

Social Bottom Line Management: Processes

At En-Sync 8020, we utilise the following key processes to ensure an effective management of Social Bottom Line Management:
Shared
Value
Business
Strategy
Social License
to Operate
Social
Capability
Social Bottom Line
Accounting
Identify the equilibrium of the stakeholders’ interests that maximise the economic bottom line
Develop the business strategy that is aimed to achieve the equilibrium of the stakeholders’ interests and non-negotiable goals
Ensure positive support of the business strategy by defining, monitoring and analysing changes in social license and shared value equilibrium
improve the organisational capability by delivering
the business strategy and maintaining the social license
Measure the changes in the social bottom line and its impact on the
economic bottom line by establishing a set of indicators and analytics

Shared Value Equilibrium

Shared Value of the company’s stakeholders is the ultimate goal of modern companies The shared value is achieved through the balance of the stakeholders’ interest.
At En-Sync 8020, we use the following processes to find the Shared Value Equilibrium:
Stakeholders
Stakeholder
relationships
Stakeholder
objectives
Stakeholder
power
Equilibrium
modelling
Map groups of stakeholders for
the company
Identify and map the mutual influence relationships between
the stakeholders.
Identify stakeholders’ objectives in qualitative, quantitative, time measures for each relationship
Identify the key relationships available for the stakeholders support the objectives
Model the equilibrium of the interests to optimise the interests of all the stakeholders to maximise the economic bottom line for the company
Shared Value Equilibrium: Accelerated Learning Technology
At En-Sync 8020, we utilise a combination of accelerated learning, dynamic factor modelling, economic, social and environmental value drivers, which allow active learning, trial and errors, in a safe, simulated environment. We do this in In order to highlight old perceptions and ideas about the Single Economic Bottom Line strategy.
Accelerated Learning & Development of Shared Value Equilibrium:
Allows the Executives to see the consequences of ignoring the Triple Bottom Line Equilibrium, today and in the future, and learn about the benefits of changing their perceptions and behaviours about the
Triple Bottom Line Management.

Business Strategy for Shared Value

Effective Business Strategy in the context of Triple Bottom Line Management achieves the targeted shared value equilibrium of interests among the company’s stakeholders, maintains the equilibrium and develops the stakeholders’ interests to find a new equilibrium at a higher level of economic bottom line
for the company.
As a result, to ensure an effective Triple Bottom Line Business Strategy, at En-Sync 8020, we develop
the following elements of the strategy:
Non-negotiable
Goals
Critical Success
Factors
Tasks
Social
Capability
Strategy Linkage
Interests of Stakeholders from the equilibrium model become the
non-negotiable goals embraced in the business strategy
Critical success factors for every non-negotiable goal set
Tasks required to achieve objectives of every critical success factors accompanied with
critical path

Milestones set that match the complexity of the business strategy

Milestones described as outputs
Accountabilities for the tasks cascaded through
the organisational levels
Complexity level of the Business Strategy must match the complexity of the business / value chain

Social License to Operate is:

  • The positive intention of stakeholders, as social license holders, (employees, trade unions, communities, government, NGOs, political parties, etc.), to provide support to the business short and long-term economic bottom line objectives.
  • The critical leading indicator of the company’s Social Bottom Line.
  • It is important to measure Social License to Operate, quantitatively.
At En-Sync 8020, we use the following processes to define, monitor and improve Social License to Operate:
Social License
definition
Social License
assessment
Social License
improvement
Real Time
monitoring
stakeholder support defined with Context, Action, Target, Time dAn for critical tasks in the strategy
Tools which evaluate factors that may have negative impact on the intention of stakeholders to support the business strategy’s objectives
Develop action plans to eliminate or reduce negative impact of the factor
Real time digital analytics and dashboards
for monitoring of social license to operate

Social Capability is realised when:

The organisation can apply the same level of complexity and capability to objectives and tasks related to stakeholders as it applies to economic bottom line objectives (of shareholders).
At En-Sync 8020, we analyse 3 basic capability elements, to evaluate the quality of the company’s social capability:

Systems

Structure

People

Critical tasks of the strategy differ in the complexity level of work required to deliver the outputs:

  • For example, Level 2 Task requires a business process to have a successful delivery
  • Level 3 Task needs a mature functional system

Critical tasks of the strategy require a certain level of standardisation based on level of work complexity (standards, procedures, policies, etc.)

Organisational roles differ in levels of complexity (8 levels)
  • Every critical task must have an accountable role
  • Level of role accountable for a task must match the level of work complexity of the task
  • The role accountable for the critical task must have the authorities required
Critical tasks must have 7 types of horizontal working relationships set

Every critical task of the strategy has the profile of the competency requirements that a role holder must have to deliver the tasks effectively:

  • Skilled knowledge
  • Experience
  • Qualifications
  • Values
  • Information processing capability

Competencies of the role holder accountable for the critical task must match the competency requirements

Social Bottom Line accounting

For En-Sync 8020, Social Bottom Line accounting is a set of “lagging” indicators to evaluate the current state of the equilibrium among the stakeholders’ interests and its impact on the economic bottom line
of the company.
Social License to Operate is the Critical Leading Indicator of the company’s social bottom line, as a result, it is important to measure Social License to Operate quantitatively.
At En-Sync 8020, we use the following processes to define, monitor and improve Social License to Operate:
Stakeholder
Objectives
Stakeholder
Changes
Stakeholder
Events Impact
3BL Value
Driver Tree
Track and Analyse an achievement of shared value (equilibrium) objectives by stakeholders of the company
Track and Analyse changes in:
  • the stakeholders’ objectives
  • stakeholder composition (new stakeholders)
  • stakeholder power

Track and analyse the events with the stakeholders that have an impact on the shared value equilibrium and economic bottom line of the company

Analyse losses and opportunities for the company and stakeholders that are presented by such changes

Triple Bottom Line Value Driver Tree developed, updated and used for analytics

To track changes in economic, social and environmental bottom lines and their impact on each other

Are you interested to find out…
  • Where the gaps are in your Social Bottom Line Management and how to improve it?
  • How to start managing your company’s Social Bottom Line?
  • How to keep your company relevant in 5, 10, 15 years’ time?
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