Page 183 - Performance Leadership

172 • Part III Principles from the Values and Social Dimensions

avoid layoffs and would lead to making at least part of the target. Islamic
banking would have great potential for opening up a previously
untapped market but would require significant investment and would
only potentially contribute to the ROCE over the long term. A new
matrix, plotting social/environmental performance against business per-
formance, shows how these options can be compared. See Figure 10.2.
The lines in Figure 10.2 represent the effort Direct Bank could put
in each of the options. If this is a low effort, it would only look at creat-
ing some efficiencies. If it puts in major effort (high), it requires a com-
plete redesign. A horizontal line means the business performance
increases, while the social/environmental performance stays the same.
It means the improvement option is valid and that the initiative is envi-
ronmentally and socially neutral. A decreasing line means the organi-
zation may reach its goals, but by extracting value from its environment.
The organization’s benefit is an environmental and/or social loss. This
leads to risk and should be considered a nonsustainable solution.
Increasing lines are to be preferred. It means that management is adding
value by finding a way to reconcile the different requirements from the
various stakeholders, such as society and shareholders. Both the organ-
ization and its stakeholders win.
Figure 10.2 clearly shows that centralizing call centers is not a good
idea. If there is some moderate cost-cutting it is okay, but the moment it
means closing a call center there is great social risk. The call center is the
only physical presence the company has in the country. Laying off people

F igur e 10.2
CSR as Part of the Business Model for Direct Bank

Centralizing Call Centers Connecting Call Centers Islamic Banking
Social/
Low
environmental High High
performance
Low

High Low

Business Business Business
performance performance performance