The Adaptive Quadruple Bottom Line Scorecard: Measuring organizational sustainability performance

Organizational sustainability is driven by effectiveness and adaptation. To be sustainable, an organization needs two things: (1) knowledge of its impacts on the world and (2) the capacity to learn and innovate in response (McElroy, 2006a). However, most learning and innovation systems in mainstream business are dysfunctional and unsustainable. In this paper, we propose to measure organizational sustainability performance with a new strategic map: the Adaptive Quadruple Bottom Line Scorecard (AQBLSC). This is our contribution to the dialogue about the next generation of Performance Scorecards. Based on the principles of the New Knowledge Management and the Triple Bottom Line, we also adopt a capital-based view. We focus on the impacts of organizational operations on vital capitals. We advocate the use of a quotient-based Footprint Method (McElroy, 2008) as an impact measurement tool, and the use of system dynamics as an impact modeling tool. The AQBLSC provides necessary tools for thinking about indicators, measurement models and metrics for learning, adaptation and (stakeholder) sustainability.