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Getting to TBL Metrics Burr Stewart, Burrst Sustainable Seattle – Triple Bottom Line Accounting July 15, 2010
Ideas for discussion today ,[object Object],[object Object],[object Object],[object Object],[object Object]
Popular sustainability metaphors: Economy Ecology Equity Environmental Social Financial Three-legged stool: Wedding cake: Hence, the “Triple Bottom Line” Also, “Corporate Social Responsibility”
Sustainability is simply: Looking “UP” Looking “AHEAD” self organization industry region world country Beyond this year Beyond cheap oil Beyond big bureaucracies Beyond our lifetimes With shared VALUES Money People Environment ,[object Object]
Complicated Simple Anarchy Complex Uncertainty Disagreement … in an increasingly complex world: Benchmarking Scenarios Pilot projects Facilitation Transparency Listening
“ Complicated” vs. “Complex” Types of Questions: What is the problem? Who’s in charge? How can we convince them? What makes you angry? What is possible? What matters? Who else cares? What has worked? What gives you hope? Actions: Plan Create structure Convince Control Stay the course Notice patterns Pilot programs Learn in public Self-organizing groups
Population Greenhouse Gas Emissions Global Temperature Sea Level 2008 CO 2  at 384 ppm  1990 2020 2050 2200 Cause and Effect Relationships in Climate Change Mass Extinctions at ~1000 ppm CO 2 Global Population 6.6 Billion -> 10 ish Bad! 1900
Relationships 101: Cause Effect Stop it Deal with it $$! (Prevention) (Adaptation) Understanding Action
Clarifying Causes & Effects GHG Effects on Xpo Prevention Adaptation $$! Climate Changes Effects on Local Society Effects Outside study area Energy Use Population
 
We’re running out of time We’re Here Our Goal What’s actually Kyoto approach What people think is happening A proactive approach happening 2020 2050 2007
What “collaboration infrastructure” do we need to manage this? 2055 2005 1955 0 Currently projected path Flat   path Historical emissions 2105 “ wedges” R. Socolow and S. Pacala  Princeton University
Catching the waves Efficiency Simplicity Fewer people We are here
Equal visibility of system components Economy Society People Animals Plants Land and Oceans Climate Air & Water Minerals
The forces & actions mismatch Global National State Regional Local Forces Actions & Actors
What is my responsibility to partner to achieve sustainability? ME Our Suppliers Their Suppliers Their Customers Our Customers The public Our Industry My Organization How far does Life Cycle Analysis need to go? Who decides?!
The challenge of shared responsibility MY actions MY PROJECT actions MY COMPANY actions MY COUNTRY or WORLD actions Our CUSTOMERS’ actions Our SUPPLIERS’ actions Who pays for these?
“ Matrix” collaboration: Local Regional National Global Freight Passengers Airports Airlines Mfgrs. FAA ICAO Distribution Centers Businesses Trucks Hotels Cars Businesses Pleasures Pleasures Transit Travel Aviation Logistics Society Society
Who is in charge? ’ 50’s ’ 90’s ’ 20’s Pub. Pvt. NGO
Basic Needs for: Se Self and Family Community World Met by: Private Sector Public Sector NGO Sector Paid by: Prices Taxes & Fees Donations Regulated by: Media Exposure Laws & Courts Chosen by: Markets Elections Collaborations
Coordinating the Strategy Terrorism & criminal activity Fire Earthquake Pandemic Environmental Volcano & climate Cyber Prevention Planning Response Recovery
Bridging the CAP—OPS Divide ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
We need to better visualize long term performance of assets at the rear end as well as the front end of their life: Revenues Costs Years
Not just financial, but also environmental and social Revenues Costs Years Ecosystem benefits Social benefits Ecosystem impacts Social burdens
“ Graphic Portfolio Management” would help us see tradeoffs between various project costs and revenues Today
Whoever can solve this for clients, wins! Social benefits Ecosystem benefits Revenues Ecosystem impacts Social burdens Costs
Global strategies
 
Process strategies
Learning in public
Organizational strategies
 
Chaos and research Mission, strategies and objectives Performance measures, budgets and resources Initiatives and Projects Hopes and worries Why and what How much and when Action and results Meetings and study One sheet of paper Many databases Products,  facilities and services TBL Accounting Making Change Happen
Performance Management for an organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Who What Board & CEO Direction & resources Technical staff New TBL metrics Proj. mgrs. Green everything Business. mgrs Contract docs. TBL auditors Review metrics All departments Their parts in it
The “Planning” Model Financial Objectives, Risks, & Value Environmental Objectives, Risks & Value Social Objectives, Risks & Value Gather Measures, Data Who Pays? Who Decides? Who Acts?
The “Seeking” Model Financial Objectives, Risks, & Value Environmental Objectives, Risks & Value Social Objectives, Risks & Value Act on L.H.F. See Who Pays Measure Adjust
Triple Bottom Line Strategy Economy Environment Equity Environmental Justice Social Responsibility Efficiency Air and water quality, land use decisions, sediment clean-up Financial performance, local economic impacts, local access to global economy Employee benefits, community involvement, living wages, social responsibility Organizational sustainability
TBL meets BSC Customer Community Organization “ Triple Bottom Line” Economics Society Environment “ Balanced Scorecard” Wages, Benefits Profit, Capital Green operations Competitive pricing Customer service Minimum impact Maximum benefit Corporate citizenship Local jobs
Triple Bottom Line Metrics Economics Society Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Metrics about the Outcomes:
Metrics about the Initiatives:
Making Progress ,[object Object],[object Object],[object Object],[object Object]
What else do we need to be doing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What does this all mean? ,[object Object],[object Object],[object Object],[object Object]
Three reasons why I’m optimistic: ,[object Object],[object Object],[object Object]
 
Thank You ,[object Object],[object Object],[object Object],[object Object]
The Ken Wilbur model of systems thinking: Inner (interpretive) Outer (measurable) Individual Group “ I” “ It” “ We” “ They” motives shared values actions org. structure What you see What you don’t Hard Soft “ The Soft stuff is the Hard stuff”
Brain Science ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CARING ADAPTING UNDERSTANDING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],IQ EQ SQ
Balance Individual and Corporate Personality Variations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SQ

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Getting to TBL metrics

  • 1. Getting to TBL Metrics Burr Stewart, Burrst Sustainable Seattle – Triple Bottom Line Accounting July 15, 2010
  • 2.
  • 3. Popular sustainability metaphors: Economy Ecology Equity Environmental Social Financial Three-legged stool: Wedding cake: Hence, the “Triple Bottom Line” Also, “Corporate Social Responsibility”
  • 4.
  • 5. Complicated Simple Anarchy Complex Uncertainty Disagreement … in an increasingly complex world: Benchmarking Scenarios Pilot projects Facilitation Transparency Listening
  • 6. “ Complicated” vs. “Complex” Types of Questions: What is the problem? Who’s in charge? How can we convince them? What makes you angry? What is possible? What matters? Who else cares? What has worked? What gives you hope? Actions: Plan Create structure Convince Control Stay the course Notice patterns Pilot programs Learn in public Self-organizing groups
  • 7. Population Greenhouse Gas Emissions Global Temperature Sea Level 2008 CO 2 at 384 ppm 1990 2020 2050 2200 Cause and Effect Relationships in Climate Change Mass Extinctions at ~1000 ppm CO 2 Global Population 6.6 Billion -> 10 ish Bad! 1900
  • 8. Relationships 101: Cause Effect Stop it Deal with it $$! (Prevention) (Adaptation) Understanding Action
  • 9. Clarifying Causes & Effects GHG Effects on Xpo Prevention Adaptation $$! Climate Changes Effects on Local Society Effects Outside study area Energy Use Population
  • 10.  
  • 11. We’re running out of time We’re Here Our Goal What’s actually Kyoto approach What people think is happening A proactive approach happening 2020 2050 2007
  • 12. What “collaboration infrastructure” do we need to manage this? 2055 2005 1955 0 Currently projected path Flat path Historical emissions 2105 “ wedges” R. Socolow and S. Pacala Princeton University
  • 13. Catching the waves Efficiency Simplicity Fewer people We are here
  • 14. Equal visibility of system components Economy Society People Animals Plants Land and Oceans Climate Air & Water Minerals
  • 15. The forces & actions mismatch Global National State Regional Local Forces Actions & Actors
  • 16. What is my responsibility to partner to achieve sustainability? ME Our Suppliers Their Suppliers Their Customers Our Customers The public Our Industry My Organization How far does Life Cycle Analysis need to go? Who decides?!
  • 17. The challenge of shared responsibility MY actions MY PROJECT actions MY COMPANY actions MY COUNTRY or WORLD actions Our CUSTOMERS’ actions Our SUPPLIERS’ actions Who pays for these?
  • 18. “ Matrix” collaboration: Local Regional National Global Freight Passengers Airports Airlines Mfgrs. FAA ICAO Distribution Centers Businesses Trucks Hotels Cars Businesses Pleasures Pleasures Transit Travel Aviation Logistics Society Society
  • 19. Who is in charge? ’ 50’s ’ 90’s ’ 20’s Pub. Pvt. NGO
  • 20. Basic Needs for: Se Self and Family Community World Met by: Private Sector Public Sector NGO Sector Paid by: Prices Taxes & Fees Donations Regulated by: Media Exposure Laws & Courts Chosen by: Markets Elections Collaborations
  • 21. Coordinating the Strategy Terrorism & criminal activity Fire Earthquake Pandemic Environmental Volcano & climate Cyber Prevention Planning Response Recovery
  • 22.
  • 23. We need to better visualize long term performance of assets at the rear end as well as the front end of their life: Revenues Costs Years
  • 24. Not just financial, but also environmental and social Revenues Costs Years Ecosystem benefits Social benefits Ecosystem impacts Social burdens
  • 25. “ Graphic Portfolio Management” would help us see tradeoffs between various project costs and revenues Today
  • 26. Whoever can solve this for clients, wins! Social benefits Ecosystem benefits Revenues Ecosystem impacts Social burdens Costs
  • 28.  
  • 32.  
  • 33. Chaos and research Mission, strategies and objectives Performance measures, budgets and resources Initiatives and Projects Hopes and worries Why and what How much and when Action and results Meetings and study One sheet of paper Many databases Products, facilities and services TBL Accounting Making Change Happen
  • 34.
  • 35. The “Planning” Model Financial Objectives, Risks, & Value Environmental Objectives, Risks & Value Social Objectives, Risks & Value Gather Measures, Data Who Pays? Who Decides? Who Acts?
  • 36. The “Seeking” Model Financial Objectives, Risks, & Value Environmental Objectives, Risks & Value Social Objectives, Risks & Value Act on L.H.F. See Who Pays Measure Adjust
  • 37. Triple Bottom Line Strategy Economy Environment Equity Environmental Justice Social Responsibility Efficiency Air and water quality, land use decisions, sediment clean-up Financial performance, local economic impacts, local access to global economy Employee benefits, community involvement, living wages, social responsibility Organizational sustainability
  • 38. TBL meets BSC Customer Community Organization “ Triple Bottom Line” Economics Society Environment “ Balanced Scorecard” Wages, Benefits Profit, Capital Green operations Competitive pricing Customer service Minimum impact Maximum benefit Corporate citizenship Local jobs
  • 39.
  • 40. Metrics about the Outcomes:
  • 41. Metrics about the Initiatives:
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.  
  • 47.
  • 48. The Ken Wilbur model of systems thinking: Inner (interpretive) Outer (measurable) Individual Group “ I” “ It” “ We” “ They” motives shared values actions org. structure What you see What you don’t Hard Soft “ The Soft stuff is the Hard stuff”
  • 49.
  • 50.

Editor's Notes

  1. We have all been taught to use standard problem-solving tools, but now we need to develop facility in a new set of “opportunity-seeking” tools.