Estimated reading time: 3 minutes, 40 seconds.
TODAY’S IDEA: Bottom-line thinking
— From Thinking for a Change: 11 Ways Highly Successful People Approach Life and Work by John C. Maxwell
When we think of the bottom line, the first thing that comes to mind is money. However, in Thinking for a Change, leadership guru John C. Maxwell says that if we solely focus on financial matters as the bottom line, we may miss something critical. He says, “Instead, think of the bottom line as the end, the take away, the desired result. Every activity [and organization] has its own unique bottom line. If you have a job, your work has a bottom line. If you serve in your church, your activity has a bottom line. So does your effort as a parent, or spouse, if you are one.”
Maxwell tells the story of Frances Hesselbein who headed the Girl Scouts of America for many years and turned it around into the successful organization that it is today. When she became CEO of the organization, it was in trouble because it lacked direction, and interest in it was dwindling from girls to participate as well as from adults to volunteer. She needed to focus on the bottom line. In her words, “We kept asking ourselves very simple questions. What is our business? Who is our customer? And what does the customer consider value? If you’re the Girl Scouts, IBM or AT&T, you have to manage for a mission.”
Asking these questions and her focus on a mission led Hesselbein to find the Girl Scouts bottom line: “We really are here for one reason: to help a girl reach her highest potential. More than any one thing, that made the difference. Because when you are clear about your mission, corporate goals and operating objectives flow from it.”
In this case, her bottom line was not measured in dollars but in changed lives.
If you are wondering how you can put bottom-line thinking to work for you, Maxwell shares the following five points to do this.
1. Identify the real bottom line.
“It can be as lofty as the big-picture vision, mission or purpose of an organization. Or it can be as focused as what you want to accomplish on a particular project.” Be very specific. “What are you really trying to achieve? When you strip away all the things that don’t really matter, what are you compelled to achieve? What must occur? What is acceptable? That is the real bottom line.”
2. Make the bottom line the point.
Your bottom line will be your guide and goal for all you do, and everything else revolves around it. “Sometimes, for example, an idealistically stated mission and the real bottom line don’t jibe. Purpose and profits [seem to] compete [… but] profits serve purpose—they don’t compete with it.”
3. Create a strategic plan to achieve the bottom line.
Organizations should identify and focus on the “core elements or functions that must operate properly to achieve the bottom line. […] The important thing is that when the bottom line of each activity is achieved, then THE bottom line is achieved.”
4. Align team members with the bottom line.
“Ideally all team members should know the big goal, as well as their individual role in achieving it. They need to know their personal bottom line and how that works to achieve the organization’s bottom line.” (A post to reinforce this point is Believe.)
5. Stick with one system, and monitor results continually.
“Bottom-line thinking cannot be a one-time thing. It has to be built into the system of working and relating and achieving. You can’t just tune in to the desired result every now and then. Achieving with bottom-line thinking must be a way of life, or it will send conflicting messages.
ACTION
TODAY: Do you know the bottom line for the various aspects of your life? Take a moment today to pick one area you want to focus on and find out the bottom line.
FUTURE: Don’t lose sight of that clarity and the bottom line you just figured out. Everything you do should revolve around that bottom line. As you embark in any action or project, ask: is this in alignment and getting me closer to my bottom line? If the answer is yes, go for it! If it’s no, then course-correct and do something instead that gets you closer to your goal.
Happy bottom-lining!
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