Post on 18-Jul-2015
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
Corporate money profit performance over the past fifty
years has been impressive
MULTI DIMENSION IMPACT ACCOUNTING
Corporate money profit performance over the past fifty years has been impressive
MULTI DIMENSION IMPACT ACCOUNTING
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
PEOPLE progressing
MBC* efficient
PLANET healthy
MULTI DIMENSION IMPACT ACCOUNTING
* MBC … Man Built Capital
MDIAMULTI DIMENSION IMPACT ACCOUNTING
is a system of metrics to enable better management of
everything that matters.
MULTI DIMENSION IMPACT ACCOUNTING
MDIAMULTI 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
Add more detail into the STATE → FLOW → STATE model and it might look
something like this:
MULTI DIMENSION IMPACT ACCOUNTING
PROBLEM!Conventional Accounting only measures this part of
the total system:
MULTI DIMENSION IMPACT ACCOUNTING
Conventional money profit accounting works very well for financial performance … that is
impact on corporate profits and stock value.
MULTI DIMENSION IMPACT ACCOUNTING
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
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
Quality of Life and Standard of Living for PEOPLE should be
measured with a system that is just as powerful.
MULTI DIMENSION IMPACT ACCOUNTING
Resource Depletion should be measured rigorously and
incorporated into all aspects of Impact Accounting.
MULTI DIMENSION IMPACT ACCOUNTING
Ecosystem Services and Bio-Degradation should be
measured rigorously and incorporated into all aspects of
Impact Accounting.
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
A massive amount of scientific data already exists and needs to be mapped to the MDIA data
architecture.
MULTI DIMENSION IMPACT ACCOUNTING
New units of measure need to be defined so that scientific data may be converted into
these units of measure.
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.
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.
MULTI DIMENSION IMPACT ACCOUNTING
Standard Values have much the same characeristics as
Standard Costs in commercial cost accounting.
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.
MULTI DIMENSION IMPACT ACCOUNTING
Data about PRODUCTS needs to be organized. The IMPACT of every PRODUCT in the market
should be 'a click away'.
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.
MULTI DIMENSION IMPACT ACCOUNTING
Data business performance will include IMPACT as rigorously
as there is accounting for PROFIT.
MULTI DIMENSION IMPACT ACCOUNTING
PROCESS is also an element of the data architecture. There should be Standards for all
processes.
MULTI DIMENSION IMPACT ACCOUNTING
COMPANIES have financial accounts. MDIA standards may
be used to convert financial accounts to impact accounts.
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
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.