From Aristotle to Tony Flenderson

Having gained a legion of mass-market beer fans last edition, we’re now pivoting, like a business discovering webinars in a pandemic, into some good, old-fashioned Greek philosophy. 

Enter, Aristotle:

The world of impact, in non-traditional settings, like businesses, investment firms and foundations is relatively ‘fresh,’ as Aristotle would put it. 

So I‘m sharing 2 stories (I’ve resisted calling them metaphors—you’re welcome, pedants) designed for a corporate audience that I hope will be useful for you to explain, support and promote your work.

Before we dive in, I’d really love to hear what you think about these moment stories and if you have a different way of explaining this moment of impact? Hit reply and let me know.

Story 1: The Horizontalising of Impact

Ok, picture someone working in computing in the 80s.
Let me guess; a guy, white short-sleeved shirt, pens in the top pocket.
Congratulations, you’re thinking of my Dad. 

Tech used to be a vertical function; off in a side room tinkering with computing towers the size of SUVs. 

Over 20 years or so, those towers became desktop IBMS, then bright jellybean iMacs and eventually the Lenovo Thinkpad with that weird little red thing that’s supposed to be a mouse. Tech transformed from a single function to a horizontal layer, woven into every role, workflow and industry - supported by a merry band of enablers called IT.

Now, almost every job is, in part, a tech job.
Tech horizontalised (yes, I cringed typing that).

To an admittedly smaller degree, Impact is following the trajectory.

For decades, Impact was a vertical - the job of not-for-profits and government; the third sector. 

As consumers started to understand the story of stuff, they sought companies that reflected their values, brands that added to their identity. Consumers wanted ‘alignment.’

CSR, SDGs and ESG started creeping into more boardrooms and all of a sudden the commercial, compliance and communal incentives started stacking up.

Now, in a growing number of companies, most business units are now asking: How does our core (and even not so core) business affect our customers, community, and the world - for better or worse? It may not be the work they are doing, but, like Tech, it is a lens through which their work gets done.

Just like Tech 40 years ago, impact is horizontalising, and we have the privilege of working to usher in that moment. The way it lands within our organisations; whether an impact lens is seen as an obstacle, an obligation or an opportunity - well, that’s up to us.

Story 2: The Opportunification of Impact

Story 1 offers a decent meta-narrative of the impact sector as a whole, but it doesn’t capture the value that an impact lens adds to an organisation when done well.

That’s where Story 2 comes in - and it arrives courtesy of the wonderful Harriet Dwyer of Airtree and Barry Street Consulting fame.

So, let’s begin.

Remember when Human Resources was the ‘fun police’ of office sitcoms. 

Since the dawn of fluorescent lit office cubicles, HR professionals have been writing and enforcing company policy in order to minimise risk, maximise safety and ensure the longevity of the term ‘nark.’

But, over the past 20 years, HR became People & Culture (always stylised with the ampersand for added flair). 

Because, of course, humans are no longer resources to be harnessed and exploited, like rare earth minerals in an active conflict zone. 

P&C isn’t just about compliance. It’s about community, engagement and retention. They recruit and retain talent, celebrate milestones and cultural moments, build ‘generous leave packages’ and offer coaching, development and support - all proven to boost productivity, stabilise teams and increase profitability.

That shift from compliance to value creation has turned companies into cultural trendsetters (think Canva and its Vibe Team) and, crucially in tight labour markets, talent magnets - a process codified in the magnum opus of any high-functioning P&C team, the Employee Value Proposition.

Now, Impact is following that same pathway. 

Where ESG’s decade of dominance has centred on compliance and risk mitigation, the next era of impact is about opportunity.

ESG and CSR still remain, but impact is evolving from a compliance function to a growth driver.

Impact leaders aren’t just keeping companies out of trouble; they’re making them stronger: attracting and keeping top talent, winning customers, and increasing investor appeal. Done well, impact boosts profitability, strengthens valuation, and contributes to the moat, the organisation's competitive advantage.

So, how long before we see companies proudly sharing their Impact Value Proposition?

Right Now

Of course, all of this exists in an interesting context - which is a nice little euphemism for whatever the hell is happening in America today. But we’ll tackle that in a later edition.

For now, no matter which way the winds are blowing, I’m not worried. Impact isn’t just a nice thing to do, nor just the right thing to do - when it comes to growth, it’s the smart thing to do too.

Cheers

Tim