Mdia p3-01-why-what-how-150420

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Mdia p3-01-why-what-how-150420

  1. 1. MDIA WHY? WHAT? HOW? MULTI DIMENSION IMPACT ACCOUNTING
  2. 2. The GOAL is to design and deploy a system of metrics for management that accounts for impact on people and planet as rigorously as double entry accounting accounts for money transactions that impact profit MULTI DIMENSION IMPACT ACCOUNTING
  3. 3. Corporate money profit performance over the past fifty years has been impressive MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. But labor income over the past fifty years … not so good MULTI DIMENSION IMPACT ACCOUNTING
  5. 5. WHY? MULTI DIMENSION IMPACT ACCOUNTING
  6. 6. The following slides show some important trends! MULTI DIMENSION IMPACT ACCOUNTING
  7. 7. MULTI DIMENSION IMPACT ACCOUNTING
  8. 8. MULTI DIMENSION IMPACT ACCOUNTING
  9. 9. MULTI DIMENSION IMPACT ACCOUNTING
  10. 10. MULTI DIMENSION IMPACT ACCOUNTING
  11. 11. MULTI DIMENSION IMPACT ACCOUNTING
  12. 12. Corporate money profit performance over the past fifty years has been impressive MULTI DIMENSION IMPACT ACCOUNTING
  13. 13. Huge recent economic growth but a finite planet! MULTI DIMENSION IMPACT ACCOUNTING
  14. 14. MULTI DIMENSION IMPACT ACCOUNTING
  15. 15. MULTI DIMENSION IMPACT ACCOUNTING
  16. 16. MULTI DIMENSION IMPACT ACCOUNTING
  17. 17. MDIA Why? More reason! MULTI DIMENSION IMPACT ACCOUNTING
  18. 18. YELLOW: The PEOPLE piece … Human Capital (NC) DIRTY BROWN: The ECONOMIC piece … Man Built Capital (MBC) GREEN: NATURE, ENVIRONMENT … Natural Capital (NC) MULTI DIMENSION IMPACT ACCOUNTING COLOR KEY
  19. 19. MULTI DIMENSION IMPACT ACCOUNTING
  20. 20. MULTI DIMENSION IMPACT ACCOUNTING
  21. 21. MULTI DIMENSION IMPACT ACCOUNTING
  22. 22. MULTI DIMENSION IMPACT ACCOUNTING
  23. 23. MULTI DIMENSION IMPACT ACCOUNTING
  24. 24. MULTI DIMENSION IMPACT ACCOUNTING
  25. 25. Trajectory to disaster! This must be changed to this … MULTI DIMENSION IMPACT ACCOUNTING
  26. 26. MULTI DIMENSION IMPACT ACCOUNTING
  27. 27. PEOPLE progressing MBC* efficient PLANET healthy MULTI DIMENSION IMPACT ACCOUNTING * MBC … Man Built Capital
  28. 28. WHAT? MULTI DIMENSION IMPACT ACCOUNTING
  29. 29. MDIA is ETRICS The double entry idea is very powerful: MULTI DIMENSION IMPACT ACCOUNTING
  30. 30. MDIA MULTI DIMENSION IMPACT ACCOUNTING is a system of metrics to enable better management of everything that matters. MULTI DIMENSION IMPACT ACCOUNTING
  31. 31. MDIA MULTI DIMENSION IMPACT ACCOUNTING It is en extension of conventional accounting and builds on the amazing power of the double entry system MULTI DIMENSION IMPACT ACCOUNTING
  32. 32. State … B/S Flow … P&L New State … B/S MULTI DIMENSION IMPACT ACCOUNTING
  33. 33. MULTI DIMENSION IMPACT ACCOUNTING
  34. 34. MULTI DIMENSION IMPACT ACCOUNTING
  35. 35. MULTI DIMENSION IMPACT ACCOUNTING
  36. 36. Put STATE side by side and there is a very useful time series: MULTI DIMENSION IMPACT ACCOUNTING
  37. 37. MULTI DIMENSION IMPACT ACCOUNTING
  38. 38. Add more detail into the STATE → FLOW → STATE model and it might look something like this: MULTI DIMENSION IMPACT ACCOUNTING
  39. 39. MULTI DIMENSION IMPACT ACCOUNTING
  40. 40. PROBLEM! Conventional Accounting only measures this part of the total system: MULTI DIMENSION IMPACT ACCOUNTING
  41. 41. MULTI DIMENSION IMPACT ACCOUNTING
  42. 42. Conventional money profit accounting works very well for financial performance … that is impact on corporate profits and stock value. MULTI DIMENSION IMPACT ACCOUNTING
  43. 43. MDIA How? MULTI DIMENSION IMPACT ACCOUNTING
  44. 44. You Manage what you Measure. Attributed to Peter Drucker When you change the way the game is scored, you change the way the game is played. MULTI DIMENSION IMPACT ACCOUNTING
  45. 45. MULTI DIMENSION IMPACT ACCOUNTING The first step is to design and develop a data architecture that is congruent with the realities of the modern global socio-enviro-economic system
  46. 46. Quality of Life and Standard of Living for PEOPLE should be measured with a system that is just as powerful. MULTI DIMENSION IMPACT ACCOUNTING
  47. 47. Resource Depletion should be measured rigorously and incorporated into all aspects of Impact Accounting. MULTI DIMENSION IMPACT ACCOUNTING
  48. 48. Ecosystem Services and Bio- Degradation should be measured rigorously and incorporated into all aspects of Impact Accounting. MULTI DIMENSION IMPACT ACCOUNTING
  49. 49. MULTI DIMENSION IMPACT ACCOUNTING The data architecture is already in a relatively complete form.
  50. 50. MULTI DIMENSION IMPACT ACCOUNTING A massive amount of scientific data already exists and needs to be mapped to the MDIA data architecture.
  51. 51. MULTI DIMENSION IMPACT ACCOUNTING New units of measure need to be defined so that scientific data may be converted into these units of measure.
  52. 52. MULTI DIMENSION IMPACT ACCOUNTING A characteristic of these new units of measure is that they will enable complex details to be summarized easily for reporting and conversation.
  53. 53. MULTI DIMENSION IMPACT ACCOUNTING These new units of measure will NOT merely be a market monetization of an element. They will be new units that have the properties of all physical measures.
  54. 54. MULTI DIMENSION IMPACT ACCOUNTING Standard Values need to be established for EVERYTHING.
  55. 55. MULTI DIMENSION IMPACT ACCOUNTING Standard Values have much the same characeristics as Standard Costs in commercial cost accounting.
  56. 56. MULTI DIMENSION IMPACT ACCOUNTING In cost accounting Standard Costs are a way massively to simplify costing without losing much, if any, of the utility of the cost accounting information.
  57. 57. MULTI DIMENSION IMPACT ACCOUNTING Data about PRODUCTS needs to be organized. The IMPACT of every PRODUCT in the market should be 'a click away'.
  58. 58. MULTI DIMENSION IMPACT ACCOUNTING Data about the choices PEOPLE make needs to be organized so that there may be ways for PEOPLE to earn rewards for making choices that are good for themselves, the society and the enviroment.
  59. 59. MULTI DIMENSION IMPACT ACCOUNTING Data business performance will include IMPACT as rigorously as there is accounting for PROFIT.
  60. 60. MULTI DIMENSION IMPACT ACCOUNTING PROCESS is also an element of the data architecture. There should be Standards for all processes.
  61. 61. MULTI DIMENSION IMPACT ACCOUNTING SUPPLY CHAIN may be built up from PROCESS standards.
  62. 62. MULTI DIMENSION IMPACT ACCOUNTING COMPANIES have financial accounts. MDIA standards may be used to convert financial accounts to impact accounts.
  63. 63. MULTI DIMENSION IMPACT ACCOUNTING Operating units of companies and entities in the supply chain can be held to account based on information originating in a PLACE
  64. 64. MULTI DIMENSION IMPACT ACCOUNTING It should become more and more difficult for anti-social operational performance to be possible simply because it is out of sight.
  65. 65. MULTI DIMENSION IMPACT ACCOUNTING Accountability is a public matter …

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