Welcome to a new segment that we at Compass^(x) Strategy are calling “Being a B.”  I speak with a lot of business owners, entrepreneurs and students and I get a lot of questions.  What is this B Corporation thing?  What does Compass^(x) Strategy do that makes it a B Corp?  Should my company become a B Corporation?  To address these questions, in each newsletter we will feature what that we, and other B Corps that we dig, are doing to make business a force for good.  Please let me know what you think in the comments section.  Or, feel free to submit questions and I will address them in a future post.

Before we get into the details, let’s start with “what is a B Corp?” Unlike traditional companies, B Corporations are legally required to consider the impact of their decisions on their employees, consumers, suppliers, community and the environment.  They also meet higher levels of transparency and legal accountability standards.

Transparency is at the heart of everything with B Corps.  Through a company’s public B Impact Report, anyone can access performance data about the social and environmental practices of that company.  This is a big deal because it is often difficult to distinguish what is a truly good company vs what is merely good marketing.  What that means is you can see the results of the Compass(x) Strategy Impact Assessment (the score we got to get certified) right on the B Corporation website.  No hiding.

Stay tuned next month when we talk about the Compass^(x) Strategy 2% for the Community program.

Recently, I started seeing an acupuncturist to alleviate my allergies, chronic bronchitis and other respiratory joys (Her name is Grainne McKeown and she is awesome).  The first time I went, Grainne took my pulse(s).  Yep.  Pulses.  Plural.  Twelve readings to be exact. 

The reason for this, I was told, was that while Western medicine only measures the quantity of the pulse (beats per minute), Eastern medicine additionally measures the quality of the pulse – the degree to which it is smooth vs. wiry and strength vs. weakness among other things. As a result of this way of measurement, Grainne drew some powerful insights about the root cause of my issues and was able to implement a holistic solution that addressed the systemic problem.  

This of course got me thinking.  Isn’t the same thing true when we think about our business?  Too often we focus only on metrics that measure the quantity of things (sales, revenue, profit, growth).  But are we missing the opportunity to implement more systemic solutions because we are not measuring the quality of things in our business?  By not measuring the quality of our business, are we missing the opportunity to answer the question “why?”  Why are sales down?  Why is revenue up more than we thought? (Note: a former boss of mine once said that if sales were up more than you projected, you missed your plan. Understand why.)

So, here is my challenge to you.  Take some time with your team this week and ask yourself, “how do we know how we are doing?”  Here are a few thoughts to get you started.  Let’s say you are The Acme Anvil Company and you are trying to grow sales to misguided coyotes.  A few quality metrics you could consider:

• Brand Relevance:  Online and offline groups formed around a love for Acme Anvils (think Harley Davidson)
• Customer love:  Customers who submit pictures and videos using your anvils (think Rickshaw Bagworks)
• Employee passion: Degree to which your employees are proud to wear Acme Anvil t-shirts (think Google)
• Company Impact: The number of anvils you give away to coyotes that can’t afford them (think Fellow B Corp Warby Parker)
• Innovation:  How long are the lines for the launch of your new titanium anvil (Think Electronic Arts)

What else did you come up with to measure?  Let me know in the comments section.

I recently read a fascinating article in Wired that said that as science’s ability to target specific genes and molecules has been increasing, it’s effectiveness in finding drugs to solve problems has been decreasing. Weird, right? It turns out, that in an effort to focus on smaller and smaller pieces of the puzzle, scientists lost sight of the interactions of all the stuff that happens in a system as complex as the human body. They lost sight of the big, holistic picture.  It isn’t just about this one gene, or this one molecule.  It is, at least in part, about understanding the role of that gene or molecule in the bigger system.  

This isn’t just confined to science.  We see it all the time in business.  A company spends money on a new logo without understanding what it is they want the new logo to communicate about the company’s broader Purpose.  Guess what?  Sales do not increase.  A finely honed SEO strategy focusing on high value key words will merely drive weak leads if you don’t know who your most likely buyers are and why they buy your stuff.  A well directed, edgy video posted on your YouTube channel without understanding “why choose us” is art, not branding. Technology has given us the ability to create finely honed tactics.  And that is good. Tactics do matter and can, on occasion, be a game changer for your business. However, they have more consistent impact when their role within the big holistic picture is considered.

So, when thinking about your next social media campaign, new product launch, or grassroots programs, put it in context.  When intimately connected to all the other vital initiatives, a tactic can be a powerful thing.  

Not really.  For starters, I was never a Boy Ranger who went to our nation’s capital only to be disillusioned by the corruption of my former heroes.  But, I was (briefly) a Girl Scout, and  last week, I went to Springfield Illinois with a few other Chicago business owners to advocate for Benefit Corporation legislation. 

For some background, Benefit Corporation legislation allows for the creation of a new and voluntary corporate entity in Illinois that incorporates social responsibility and environmental awareness into the very fabric of the company. Current law requires that corporations exist exclusively to maximize shareholder value.  Under this corporate model, social responsibility is subordinated and legally trumped by the fiduciary responsibility to maximize profits. This new type of corporate structure accommodates companies that have Purpose at the core of their company. by adding three requirements to a typical structure such as an S-Corp or a C-Corp.

1) Purpose: have a corporate purpose to create a material positive impact on society and the environment; 

2) Accountability: expand fiduciary duty to require consideration of the interests of workers, community and the environment; and 

3) Transparency: publicly report annually on overall social and environmental performance against a comprehensive, credible, independent, and transparent third party standard.

Benefit corporation laws have been enacted in seven states (including New York, New Jersey, Virginia and California) and bills are moving forward in seven others.   We want Illinois to be next.  

The Journey

On March 22, 2012 I met Steve Sherman (Green Choice Bank) and Greg Christian (Zullos) at Chicago’s Union Station for the three hour train ride down to Springfield.  As you can imagine, we were excited yet nervous – we are all business people, not legislators nor activists.  But fueled by enthusiasm for our cause and lots of caffeine, we set off to Springfield.  

Once in Springfield, we met up with Jen, Tom and Vinnie at the Illinois EnvironmentalCouncil who were our teachers, wingmen and Yodas for the day. 

Our first stop:  “The Rail.” 

The House and Senate were both in session for the day, so all the action was happening in the Capitol building.  While the Senate was off limits, The House allows its members to leave session to talk to constituents that are there to see them.  

How do they know we were there to see them? We sent in business cards to our representatives and hoped they would come out to talk with us.  Democracy in action!

I am pleased to report that every one of them came out to talk to us.  We talked about ourbusinesses, the importance of the legislation and often, Calzone food trucks!

After several hours of loitering and chatting up Representatives, the session in house wrapped up and we headed to their offices.  We went office to office, speaking with anyone in their office.  We were impressed that everyone took 

the time to speak with us.  It may have helped that we always sent in the GreenChoice Bank card (you can’t say no to someone that runs a bank!), but everyone spoke with us.  Good questions were asked, and for the most part everyone was thoroughly engaged on the topic. 

After a long day, of loitering at the rail and talking legislation, we arrived back home in Chicago, having learned a lot, participated in the democratic process and having made a difference (or, as Greg put it, “we are just a couple of cool companies, helping to change the world)!

What’s next?  

All signs are good for B Corp legislation in Illinois.  The Senate is due to vote on the bill in the next few weeks, with the House following in May.   Thank you to the sponsors in both houses that are championing this bill.  Representative Sara Feigenholtz of the 12th district is our sponsor in the House and Senator Michael Frerichs of the 52nd district in the Senate. Thank you!

Please support Benefit Corporation by signing the petition.  

In the classic 80’s film “Say Anything,” John Cusack’s non-jock, outsider character is asked how he got Diane Court, the most elusive girl in school, to go out with him. After stating the obvious (“I called her up”), he ultimately responds with, “I’m Lloyd Dobler.”

Who you are matters.  Not just what you make or sell (or process), but who you are.  

Most successful marketing companies and ad agencies talk about the importance of “defining your brand personality.”  But this misses the point.  I don’t define my personality as Nancy.  I am Nancy.  That means that everything I do, and don’t do is who I am. Everything. That defines my personality.  Not what I say my personality is. 

Similarly, many companies talk about the need for a mission statement.  But again, this misses the point.  Too many mission statements read like a soulless, uninspiring corporate-speak: “Be the leading, most respected manufacturer of blah blah blah.”  Hardly the catalyst that will inspire people to immediately stop what they are doing and buy your stuff.

So, who are you?  What matters to you as a company? 

Patagonia gets it right.  They talk about their mission in terms of “Our Reason for Being.”  Strong words that mean something real. Patagonia’s Reason for Being is to “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”  It is clear.  I know who they are. And, because of this I choose them over other options. 

But it isn’t just what they say – it is what they do.  And don’t do.  Their Reason for Being is reflected in everything:

It is reflected in how they source and manufacture their clothing.  They created “Footprint Chronicles” allows people to track a product’s impact from design through delivery. 

It is reflected in their efforts to minimize waste and (incredibly) consumption.  Beyond encouraging customers to make repairs themselves, Patagonia takes back their products even after years of use for free (or affordable) repair or replacement. They even went so far as to run a Black Friday ad urging people to NOT buy a jacket or anything else that they don’t need. 

It is reflected in how they invest their grant and charitable dollars – participating in “1% for the Planet,” an alliance of businesses that pledge to give 1% of their profits to grassroots environmental groups.  

It is reflected in how they treat their employees.  They offer health benefits to everyone, including part-time, retail, and warehouse staff.  They even subsidize child care and counseling.

It is even reflected in their corporate governance.  California recently passed B Corporation Legislation, allowing corporations to formalize a triple bottom line approach to business (profits, planet and people).  Patagonia was the first in line to register with this new incorporation.  

Patagonia doesn’t have an “environmental steward” brand personality.  It is who they are.  

So, who are you?  

• What is your company’s Reason for Being?
• How is that reflected in everything you do?  
• Are there aspects of how you act as a company (to your customers, your suppliers, your employees, the planet, etc) that is inconsistent with this?

Lloyd Dobler would agree.  It is a dare-to-be-great situation. 

For more information on how Compass(x) Strategy can help you with your Reason for Being, email us at info@compassxstrategy.com.

This 1997 Apple ad has been on my mind lately. Not just because of the passing of Steve Jobs, but because I was surrounded by these crazy visionaries on two recent occasions.

In Mid-October, I had the pleasure of attending TEDx Midwest, here in Chicago.  If you haven’t been to a TED event, imagine an entire day filled with the incredible talks you watch on TED.com, interspersed with purposeful connection and networking time.  

Then, at the end of the month, I participated in the annual B Corporation Champions Retreat in Philadelphia. For those of you unaware of what a B Corporation is (B stands for Benefit), it is a new kind of company that uses the power of business to solve social and environmental problems.  Though new, the idea is rapidly spreading.  In just three years there are already more than 470 companies representing 60 industries and a combined revenue of $2.2 billion. Unlike traditional companies, B Corporations are legally required to consider the impact of their decisions on their employees, consumers, suppliers, community and the environment.

I feel fortunate to have been able to participate in both of these mind-expanding events, so thought I would take the opportunity to share a few learnings.

1. There is a big difference between companies that develop innovation strategies vs. those that are innovative.  So many writers and “experts” talk about the need to put innovation at the core of everything you do, but that is pretty useless advice, really.  What does that mean?  What does that look like?  Well, it looks a lot like San Francisco’s New Leaf Paper. Founded over 10 years ago, they had the modest goal of fundamentally changing the paper industry.  This is one tough industry – low margins, highly polluting and resource intensive. New Leaf Paper was the first to introduce many ground breaking products, including super-bright 100% post-consumer recycled papers, coated papers, book publishing papers and several other products that no one thought possible. As a result of their innovations, major paper manufacturers have had to follow in order to maintain relevance, and have enhanced the environmental design of their products. This is no Dunder Mifflin!

2. When business is conducted as if people matter, it turns out that they do.  Take for example Southern Energy Management a North Carolina-based sustainable energy company focusing on solar power installations and energy efficiency solutions. Even as a relatively small company, they gave all their employees a piece of the company through a stock ownership program.  So when the recession hit hard, both management and their nearly 100 employees committed to surviving together.  As a result of that, not only did they survive with no cutbacks, but the company today is thriving and growing rapidly.  In fact, they were just recognized as One of CED’s (The Council of Entrepreneurial Development)  25 “North Carolina Companies to Watch.” 

3. World changing businesses are led, not managed.  This is something that was a common thread among all the people I met at the B Corporation Retreat. Behind every company was a leader with vision, passion, dedication and a just a little bit of obsession.  Rather than drone on with gushing stories, perhaps the best way to articulate this is through two powerful quotes stated by speakers at TEDx.  

• “Fear is ok.  Complacency will kill you.” – Alison Levine, Adventure Grand Slam explorer and mountaineer
• “Vision without action is a daydream.  Action without vision is a nightmare” – Pablos Holman, inventor and hacker.

So, please join me in saying “here’s to the crazy ones.”  I continue to be impressed and inspired by you.

Inspired?  Learn more about the crazy vision of Compass^(x) Strategy and B Corporations.  Ideas?  Let me know!

The 2011 Green Jobs Award program is run by the SJF Institute and Clean Edge. The SJF Institute connects, inspires and accelerates sustainable entrepreneurs and the fields that support them. Clean Edge, Inc, is the world’s first research and   advisory firm devoted to the clean-tech sector.

Compass X Strategy will be providing pro-bono brand growth and marketing strategy assistance to one of the winning companies.  Winners will be announced in November.  Stay tuned!!

Next weekend is Lollapalooza here in Chicago  – 140+ bands on 8 stages over three 10 hour days.  For those of you who know me well (or have been reading my newsletters), you know I am a huge music fan.  Which is why I put up with the heat, the crowds and the port-a-potties to spend three days enjoying some of my favorites bands and discovering artists that become my new favorites.  But here is the problem:  Sometimes there are too many choices.  In a given time slot, there may be two or more great bands playing at the same time.  One year, I decided to not choose – I can do both, I thought!  I’ll listen to some of the first band, then dash across to the other side of Grant Park and catch some of the second band.  Needless to say, it didn’t work. I spent so much time making sure I left on time that I didn’t fully enjoy the first band.  Then, it took me longer to the second stage, so I heard very little of that band, so I don’t really enjoy that either.  I should have just committed to one. They were both good choices.

When it comes to decision making, many companies face the same issue.  Especially when it comes to choosing who it is you want to target.  Take for example, a hypothetical law firm.  They could get a lot of business with manufacturing companies, or advertising agencies or tech start-ups or any number of other types of businesses.  “We shouldn’t limit ourselves,” they say.  And so they make a website that speaks to everyone and make cold calls and send direct mail pieces to everyone.  And, as you can imagine, it doesn’t work.  Their attention and dollars are spread too thin to really connect with anyone.   Business doesn’t grow and and the leadership team agrees that sales and marketing don’t work.

So how do you choose?  How to you ensure that you boil it down to the good choices and then commit to only those that will deliver the best results.  Here is a way to get a few people together and work through the process.

1. State your goal. What does success look like?  Five more clients? 10 new business presentations?  100 inquiries?
2. Determine your criteria. What is important for you to know in making this choice?  Market size?  Profitability or margins?  Ease (in time and money) to make it happen?  Determine how you want to evaluate before you start.
3. List the options and evaluate. Put the options through the criteria outlined. Evaluating can be as simple (red/yellow/green) or as complex (numerical scores with weighting of the criteria) as you would like.  It doesn’t matter.  Just have some pre-set standards.
4. Make a decision. Once you have been through the evaluation, some ideas should rise to the top over others.  Choose and move forward.

Good luck and have fun.  And, if you are at Lollapalooza next weekend, you can catch me at the Budweiser Stage.  Or the Playstation Stage.  Or…..

For more information on conducting a targeting workshop or other strategic decision making tools, contact us info@compassxstrategy.com.

When I was 13 years old, like many Jewish kids, I stood up in front of my friends and family, read nervously from the Torah, and publicly declared (mostly symbolically) “Today I take my part in adult society.”  This week, I stood up and made another declaration. Thankfully, this time my teeth are straighter and I have outgrown my teen gawkiness.  This time, I publicly declared my values.  Today, I declare that I believe business can be better.  That business can be a force for good.  Today, my company  has become a  Certified B Corporation.

A B Corporation (B stands for Benefit) is a new kind of company that uses the power of business to solve social and environmental problems.  Though new, the idea is rapidly spreading.  In just three years there are already more than 400 companies representing 50 industries and a combined revenue of $1.5 billion. Unlike traditional companies, B Corporations are legally required to consider the impact of their decisions on their employees, consumers, suppliers, community and the environment.

B Corporations have become a legally recognized corporate structure (like a C corp or an S corp)  in Maryland, New Jersey and Vermont.  Six other states have legislation pending.  Additionally, the city of Philadelphia passed a tax break for Certified B Corporations in December 2009.

Why are states and cities getting behind this movement?  The City Council of Philadelphia found that B Corporations in their city provided more than just economic benefits.  The found that that good companies are good businesses.

- 44% offer some form of employee ownership

- They are twice as likely to offer health insurance and retirement plans

- 9 out of 10 are locally owned and are 3 times more likely to be owned by women or minorities

- 82% have programs for community volunteering

- 74% are affiliated with a local charity and are 30 times more likely to donate at least 10% of their income to charity

I am so honored to be a part of this community of forward thinking business leaders.  My 13 year old self would be proud.

Here’s how you can learn more about how Compass^(x) Strategy is being a force for good or about how you can begin assessing how your company can do more.