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Date: 2022-07-04 Page is: DBtxt001.php txt00012200

Burgess Dialog
Dialog with Frank Wennin

Dialog about Capitals ... Frank suggests 8 ... PeterB wrote about 7 in 2014


Peter Burgess

Gmail Peter Burgess Fwd: theeightcapitals 5 messages Frank Wennin Thu, Nov 10, 2016 at 4:49 PM To: Peter Burgess ---------- Forwarded message ---------- From: 'Frank Wennin' Date: Nov 10, 2016 11:06 AM Subject: theeightcapitals To: 'A M Gover' , 'Gina Bria' Cc: Gina meet Anne Marie again (Ted Hall's Reception) When I can get this to make sense to both of you we will be Off to the Races! Each Capital synchronizes with each step This will get things flowing. How hard is it to sync these to the GO-signal? 1. Individual/ Experiential 2. Social 3. Intellectual 4. Financial 5. Cultural 6. Political 7. Natural 8. Built. I'm sure about 1-4. > 5-8 is subject to interpretation if you've got better ideas about it. I certainly would love to hear them > > intellectual, > financial, > natural, > cultural, > built, > political, > individual > and social. 4 attachments Fig_1_Eight_Forms_of_Captial.png 41K theeightcapitals.pdf 98K Frank Wennin GO 48.odt 77K go signal draft.pdf 194K

Peter Burgess Fri, Nov 11, 2016 at 10:44 AM To: Frank Wennin Dear Frank Thanks for sending this to collection of material to me ... This is my paper of December 2014 which talked about 7 dimensions of Capital My basic thesis is that we are in and part of a very complex system. My current thinking about how this complexity can be understood usefully is that there is a basic system segmentation as follows: * People / Human Capital * People Built Systems, and * Nature / Natural Capital Some time back my sub-segmentation was into 7 dimensions of capital as follows • Nature and natural bounty: ◦ ...........Natural Capital (NC) • Man built structures and systems: ◦ ...........Physical Capital (PC) ◦ ...........Institutional Capital (IC) ◦ ...........Knowledge Capital (KC) ◦ ...........Financial Capital (FC) ◦ • People ◦ ...........Human Capital (HC) ...........Social Capital (SC) I got push back from a number of my peers arguing that my 7 capitals was wrong ... because others had described more or less the same ideas and concluded that the number was 5 ... or 4 ... or 6. This suggested to me that we needed dynamic thinking not a static analysis. This has evolved into this ... 3 main segments ... then just 5 sub-segments ... and a multitude of sub-sub-segments • People ◦ ...........Human Capital / Social Capital ..................... Everything that goes into Quality of Life • Nature and natural bounty: ◦ ...........Natural Capital (NC) ..................... Every dimension of natural capital (Sun, Land, Water, Air, Biological systems, Climate systems, Eco-services, etc., etc., etc) • People Built Systems: ◦ ...........Physical Capital (PC) ◦ ..................... Buildings, Infrastructure, Manufacturing Processes, Transport Systems, Computers, etc., etc., ...........Financial Capital ..................... Money wealth ...........Intangible Capital IC) ◦ ..................... Business goodwill, Network effect, NPV computations, Fiat money, etc., etc., I am developing more rigor around what it is that connects all these things together ... I call these sectors / strands / streams / strings It is also pretty clear that an understanding of the system requires an understanding of perspective. At the moment the only perspective that is measured with rigor is that associated with investors, the corporate organization and some simplistic macro-economic measures. This one perspective has given us massive inequality and is inadequate to drive anything else. As a meaningful framework for analysis emerges, I am working on the way a simple powerful system of metrics will inform decision makers everywhere in the system from powerful people with wealth and influence to every individual person on the planet and everyone in between. True Value Accounting is emerging with a system of standard value profiles as the core way to do the numbering .... [more on this later] I have a deep frustration with the idea that a complex world can be talked about in really simplistic ways ... as happens in much of the mainstream media, on social media and in the 24/7 news cycle. This is terribly unproductive and potentially extremely dangerous. One outcome is terrible public policy and a world that has increasing potential for disaster. I guess I am also frustrated at my own inability to handle this complexity in a way that is helpful. On the other hand this current frustration is not much different from the frustration I had early in my career when older managers would not embrace the computerized data that my corporate accounting was producing ... until they suddenly realized that they could use the data to improve their own performance and be given credit for being high performers! Please note that all the links I have given you above are still WORK IN PROGRESS and are being updated on a more or less continuous basis. All the best Peter _____________________________ Peter Burgess ... Founder and CEO TrueValueMetrics ... Meaningful Metrics for a Smart Society True Value Accounting ... Multi Dimension Impact Accounting LinkedIn: Slideshare: Twitter: @truevaluemetric @peterbnyc Telephone: 570 202 1739 Email: Skype: peterbinbushkill [Quoted text hidden]

Frank Wennin Fri, Nov 11, 2016 at 10:50 PM To: Peter Burgess Thanks Peter, Is MDIA something that exists in any form outside of your writings? Are you open to adapting your 7 to the 8 I'm outlining? 1. Human= Individual/Experiential 2. Social 3. Knowledge= Intellectual 4. Financial= Integrity Pool 5. Institutional= Purpose Tank 6. Natural= Keep Making Change 7. Physical= Trusteeship 8. Charity I'm just coming from the platform cooperativism conference. I'm going on Sunday. There's a billion people participating in the cooperative economy and a hundred million coops if that's really true then the new normal must find it's level. Frank [Quoted text hidden]

Peter Burgess Sat, Nov 12, 2016 at 10:10 AM To: Frank Wennin Dear Frank Is MDIA something that exists in any form outside of your writings? The answer is NO ... except that there are many initiatives to improve corporate reporting. The main accounting bodies and others are working on similar ideas and I have some low level connections with people in these groups ... not to mention around 4,000 Linkedin connections to people doing this sort of work. (Institute of Chartered Accountants in England and Wales ... and in about 20 other countries) (Associations of Certified Public Accountants in several States including New York State) (International Federation of Accountant (IFAC)) (Association of Certified and Chartered Accountants (ACCA)) (Sustainability Accounting Standards Board (SASB)) (Global Reporting Initiative (GRI)) (International Impact Reporting Committee (IIRC)) (Social Return on Investment (SROI)) and others with less traction Am I open to moving from my set of capital to your set Basically NO because I have already moved from my set of two years ago to a better set that more closely fits the world that really exists. As I mentioned previously part of my revised thinking relates to the way in which everything fits together ... or not. All systems settle down to some form of equilibrium and our socio-enviro-economic system is a system. People have changed some of the parameters of the systems in important ways, and we do not yet know what this means for the system equilibrium. This explains climate change and it also explains in a different way the Brexit event, and the rise of social and political anger. I am also wanting a framework that works in a rich city like New York and a poor village in Burundi [PLACE] ... that works for individual PEOPLE and FAMILIES and COMMUNITIES ... that works for big business organization like GE and small business like my local diner ... for hospitals in Baltimore or Cleveland, and clinics in India, for organizations like RMI or Save the Children [ORGANIZATION] ... that works for food, and clothes, and cars, and houses [PRODUCTS] ... and works for mining, and steel making and petro-chemical refining [PROCESSES] ... and ties all of these chains together in a coherent way numbering the impact of everything on ALL the capitals of the PEOPLE segment [SOCIO], the NATURAL segment [ENVIRO] and the PEOPLE BUILT SYSTEMS segment [ECONOMIC], of the SYSTEM of which we are a part. None of the initiatives that I know of have pulled together a complete framework ... in general, many of the initiatives are better at the bit they do than I am, but they ignore critical pieces or ignore critical differences like the difference between rich and poor nations, or different political and social circumstances ... and of course most of the efforts ignore the concept of double entry that has made conventional accounting such an important part of the history of business. I learned when I was quite young (from my Father) that there is nothing new in the world and that most ideas have been had before ... and this has never been more true than at the present time. The key is to understand which of the old ideas has a reasonable hope of being useful as the circumstances or context changes. Big data is an emerging tool ... but as the recent polls connected to the election have shown, they are rather poor at predicting change, which is important in the modern world where the only thing that is constant is change. I should perhaps also add that my thinking is not original ... it might be unique in the way I am trying to put all the bits together, but the bits all come from somewhere else. To the extent I find something that is a better fit than what I am doing I will most likely pull it in. This is what is going on at the moment with FinTech, Blockchain etc. but a lot of what I am seeing is smoke and mirrors without much fundamental change in the underlying system understanding that really is needed ... specifically they still have the money measure at the center, when this measure cannot do the job on its own! Lets talk ... some people are working to make the world a better place and have corporate platforms to do it ... others are going to use their corporate platforms to make money while doing immense damage to others ... both people and environment ... dependent on the system. Are you familiar with what Andrew Winston is talking about in his book The Big Pivot ... CEOs are increasingly trying to do the right thing ... I argue that CFOs don't have easy to use tools to number doing the right thing. TVA will eventually help ... but I still have to figure out a mechanism for what I refer to as the STANDARD VALUE PROFILES that are the key to simple, easy useful, numbering! Peter _____________________________ Peter Burgess ... Founder and CEO TrueValueMetrics ... Meaningful Metrics for a Smart Society True Value Accounting ... Multi Dimension Impact Accounting LinkedIn: Slideshare: Twitter: @truevaluemetric @peterbnyc Telephone: 570 202 1739 Email: Skype: peterbinbushkill

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