mdia p3-01-data-architecture-150420
TRANSCRIPT
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
MDIAData Architecture
MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.SLIDESET STILL IN DEVELOPMENT.UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS
MDIA data architecture is built around the idea that the double entry accounting construct of State, Process and Flow can be enhanced to account for impact on people and planet as well as only profit.
MULTI DIMENSION IMPACT ACCOUNTING
and this slide shows …
How progress and performance may be measured using the change in state over a period
MULTI DIMENSION IMPACT ACCOUNTING
and these slides show …
something of the complexity of the real world that exists, and what an effective system of metrics has to reflect.
MULTI DIMENSION IMPACT ACCOUNTING
This slide shows …
Something about FEEDBACK, and an approach to data flow that integrates local data collection with local decisions AND data aggregation at higher levels for research and policy analysis.
MULTI DIMENSION IMPACT ACCOUNTING
Next 2 slides● The first slide is a simplified representation of the State – Flow – State idea for ALL elements of the Socio-Enviro-Economic System
● The second slide shows what the conventional money metrics measure … just a tiny part of everything that matters.
MULTI DIMENSION IMPACT ACCOUNTING
* BOP – EOP … Beginning and End of Period
MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
HumanCapital
Man BuiltStructures & Systems
NaturalCapital
Money FoodGovernmentNature (life)
Sun
Nature (life)
Capital Market Value
WaterLaws. RulesNature (life)Land
ShelterInfrastructureWater Clothes
IndustryNature (life)AirHealth
MiningEcoservicesEducation
Energy SkillsWaste
RecreationRetailCulture
Logistics ReligionKnowledge
Technology
Security
Energy
Mobility
Profit
MULTI DIMENSION IMPACT ACCOUNTING
ResourceDepletion
EnvironmentDegradation
ImprovesQoL
Super RichAffluent
BoP
Industrial
MiningEnergy
GovernmentNot-for-ProfitPaperwork
Banking
WaterAir
EcoServicesHabitat
Law
MineralsEnergy
Land
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
ImprovesEnvironment
MaintainsNatural
Capital andremediates
ProducesProducts
ImprovesQoL
FinancialProgress
Renewables
WasteCreation
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
Super RichAffluent
BoP
Industrial
MiningEnergy
GovernmentNot-for-ProfitPaperwork
Banking
WaterAir
EcoServicesHabitat
Law
MineralsEnergy
Land
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL ACCOUNTS
Financial Accounts describe Economic Activity
REVENUESProducts Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL ACCOUNTS
ADD positive impact not accounted for
REVENUESProducts Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUESProducts Sold X Price
VALUE to buyerEquals
HUMAN CAPITAL ADD
Wages and benefitsWhat value to
employee?
Pro-good expendituresWhat value to society?
TaxationWhat value to society?
POSITIVE IMPACT NOTACCOUNTED
FOR
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL ACCOUNTS
DEDUCT negative impact not accounted for
REVENUESProducts Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
For products andenergy bought
and this process
Free use of thecommons andpublic services& infrastructure
Degradationof land
Water scarcityand degradationAir pollution:
Impact on peopleAir pollution:
Impact on climate
Air pollution:Impact on people
Solid waste
Resourcedepletion
Environmental Degradation
Negativeimpact
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL ACCOUNTS
ACCOUNTING FOR EVERYTHING
REVENUESProducts Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUESProducts Sold X Price
VALUE to buyerEquals
HUMAN CAPITAL ADD
Wages and benefitsWhat value to
employee?
Pro-good expendituresWhat value to society?
TaxationWhat value to society?
For products andenergy bought
and this process
Free use of thecommons andpublic services& infrastructure
Degradationof land
Water scarcityand degradationAir pollution:
Impact on peopleAir pollution:
Impact on climate
Air pollution:Impact on people
Solid waste
Resourcedepletion
Environmental Degradation
POSITIVE IMPACT NOTACCOUNTED
FOR
Negativeimpact
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
IMPACT OF THE ACTIVITIES OF AN INDIVIDUAL
InputTimeEffortAbility
ImprovesSociety
Pro GoodActivities
Buy and UsePRODUCTS
Pro MoneyActivities
Non-ImpactRecreation
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
ImprovesWellness
ImprovesQoL
WASTELiquidGasesSolids
NaturalCapital
Depleted
MaybeimprovesFC in HC
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
INPUTS ACTIVITIES BADImpact
State-EOPState-BOP
GOODImpact
MULTI DIMENSION IMPACT ACCOUNTING
Job-Money Work
Housing
Health
Time
Skills
Income
Recreation
Education
ProGood Work
Energy
PLUS opportunities
Improvessociety
Food
Clothes
ResourceDepletion
EnvironmentalDegradation
BOP EOPThe Individual
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
PERSONALASSETS
Energy
Health
Enjoyment
Skills
Experience
Family
Shelter
Friends
Money
Stuff
QUALITYOF LIFE
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
PERSONALASSETS
Energy
Health
Enjoyment
Skills
Experience
Family
Shelter
Friends
Money
Stuff
QUALITYOF LIFE
PRODUCTSuse MBSS
PRODUCTSImpact NC
PRODUCTSUse
MBSS
PRODUCTSimprove QOL
MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOODActivities
IndividualQoL
IndividualQoL
Use of Pesticides
Use of Land
The IMPACT of FOOD
Use of Water
Use of Fertilizers
Air Pollution
Use of Growth Hormonesand Antibiotics
Use of Energy
Use of Equipment
Use of Labor Inputs
Money Price
Money Profit
Money Cost
True Value
Value Add
True Cost
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
LAND USE
Sustainable agricultureWater purification
About LAND USE
Wetlands
Intensive monoculture
Coastal mangrove
Urban infrastructure
Roads, Parking Lots
There is a limited amount of landThere are multiple possible uses
Money Profit
Land is a factorin improving
human capital, producing goods
and services, locating MBSS,and providingvery criticalecosystemservices
Suburban sprawl
Housing
Tropical forestHabitat
Industrial operations
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
WATER USE
Food productionuses water
Beverage productionuses water
About WATER USE
Water is essential to LIFENothing is more important
Household wateruse essential
Industrial processesuse water
Rainfall and freshwater are abundant
in some placesbut not everywhere
Household wastealso pollutes
Waste water pollutionfrom processesa critical issue
Important forall processes to
treat water beforedischarge
Water is abundant,but most has toomuch dissolved
salts to be potable
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
EMISSIONS
SO2 … acid rain
CO2-Greenhouse Gas
About ATMOSPHERIC POLLUTION
Air pollution has many forms, all of which are more or less detrimental to people and planet
Particulates
MH4-Methane-GHG
Some emissionshave a direct
impact on health
Nitrous oxides
Freon-ozone layerdamage
Some emissionsare greenhouse
gases that causeglobal warming
The atmosphere is not an infinite free
dump for undesirableand toxic emissions
All emissionshave a cost
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
MBSSMan-BuiltStructures& Systems
Sun
NaturalCapital
FINANCIAL ACCOUNTSHuman
Capital
MBSSMan-BuiltStructures& Systems
Sun
NaturalCapital
HumanCapital
Economic Activity … Process Accounts
REVENUESProducts Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUESProducts Sold X Price
VALUE to buyerEquals
HUMAN CAPITAL ADD
Wages and benefitsWhat value to
employee?
Pro-good expendituresWhat value to society?
TaxationWhat value to society?
For products andenergy bought
and this process
Free use of thecommons andpublic services& infrastructure
Degradationof land
Water scarcityand degradationAir pollution:
Impact on peopleAir pollution:
Impact on climate
Air pollution:Impact on people
Solid waste
Resourcedepletion
Environmental Degradation
POSITIVE IMPACT NOTACCOUNTED
FOR
Negativeimpact
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL ACCOUNTS
Economic Activity … Process Accounts
REVENUESProducts Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
MBSS
NaturalCapital
HumanCapital
PRODUCT … the SUPPLY CHAIN
IMPACT ACCOUNTING ADJUSTMENTS
Zero to start
Costs this stage
Profit this stage
Price this stage
FINANCIAL ACCOUNTS
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Cost = Price stage 1
Costs Stage 2
Profit Stage 2
ImpactStage 1
ImpactStage 1
ImpactStage 1
Cum Costs
Cum Profit
Price Stage 2
ImpactStage 2
ImpactStage 2
ImpactStage 2
Cum Impact
Cum Impact
Cum Impact
Cost = Price stage 2
Costs Stage 3
Profit Stage 3
Cum Costs
Cum Profit
Price Stage 3
ImpactStage 3
ImpactStage 3
ImpactStage 3
Cum Impact
Cum Impact
Cum Impact
FinancialDimension
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
MULTI DIMENSION IMPACT ACCOUNTING
MBSS
NaturalCapital
HumanCapital
PLACE … Where people live and work … where impact can be seen
IMPACT ACCOUNTING ADJUSTMENTS
Zero to start
Costs this stage
Profit this stage
Price this stage
FINANCIAL ACCOUNTS
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
ImpactStage 1
ImpactStage 1
ImpactStage 1
FinancialDimension
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun
Product
Place
Supply Chain
Process
Organization
Enablingenvironment
Society
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun
Moving forward … Request for collaborationMoney is part of a complex socio-enviro-economic system. While it works … it does not work as well as it should, nor as well as it could. The work of MDIA is to enable this complex system to work better.
MDIA needs to be a team effort. Join in and help to make the world a better place. Please get in touch.
Peter Burgess … [email protected]
MULTI DIMENSION IMPACT ACCOUNTING