Materiality ... What Really Matters (140517)

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Society and the global economy are complex systems. Understanding may be improved by an appreciation of materiality and what really matters. This series of slides sets out some of the big numbers that help to identify what is important for MDIA and what is not. This is a work in progress ... just a start.
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Materiality ... What Really Matters (140517)

  1. 1. 04:52 AM peterbnyc@gmail.com www.truevaluemetrics.org MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Materiality What Really Matters @truevaluemetric
  2. 2. 04:52 AM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) A great strength of accounting and metrics over law is that accounting and metrics establish what is important and what is not without having to wade through a lot of material that is of little account. Focus on the big numbers, and there can be significant change. Don't make decisions with big numbers. Decision making should be based on the important small numbers that go into making up the big number. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Materiality-What-Really-Matters-140517.odp Materiality - What Really MattersMateriality - What Really Matters
  3. 3. 04:52 AM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Remember that the purpose of numbers and metrics is to understand something better and as a result be able to make better decisions. Another purpose of numbers and metrics is to ascertain what the results of a decision have been and what might be done to improve performance. There is no point in having numbers and metrics just to be able to show them off! The cost of numbers and metrics should always be low relative to the value of the good decisions that are enabled. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Materiality-What-Really-Matters-140517.odp Materiality - What Really MattersMateriality - What Really Matters
  4. 4. 04:52 AM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Buckminster Fuller popularized the idea of the 'trimtab'. This is a small device on the rudder of a ship that uses the energy of the ship to help move the rudder where it needs to be to change course. In management there are similar ideas. For example by making a small incremental investment it may be possible to improve the performance of an existing very large investment. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Materiality-What-Really-Matters-140517.odp Materiality - What Really MattersMateriality - What Really Matters
  5. 5. 04:52 AM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Materiality-What-Really-Matters-140517.odp A slide from the 'Share Value Leadership Summit in NYC Economic Activity by Sector U.S. (2013) Gross non-profit sector Total government spending Estimated total corporate revenue $1.2 trillion $3.1 trillion $23.1 trillion Materiality - What Really Matters
  6. 6. 04:52 AM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Economic Activity by Sector U.S. (2013) Gross non-profit sector Total government spending Estimated total corporate revenue $1.2 trillion $3.1 trillion $23.1 trillion If this is the shape of the US economy, how do you pay for: Education Health Infrastructure National security Law and order, justice Research C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Materiality-What-Really-Matters-140517.odp Materiality - What Really Matters
  7. 7. 04:52 AM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) May 2014 QUESTIONS? FEEDBACK? peterbnyc@gmail.com www.truevaluemetrics.org @truevaluemetric C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Materiality-What-Really-Matters-140517.odp

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