Some thoughts about Improvements Programs for Place
1 message
Peter Burgess Sat, Dec 5, 2020 at 10:55 AM
To: Peter Burgess
Dear Jonathan / Victoria
As you know I have been up-tight about systemic socio-enviro-economic dysfunction for a very long time ... and wanting to actually help to do something about it.
When I was active in the consulting world and actually getting assignments for the World Bank, the UN and others, I was able to do something quite practical, but I never made a 'name' for myself. Looking back, I am actually quite proud of what I was able to get done ... but was never identified with these efforts.
The good news is that in my post-career life, I have quite a lot to draw on ... though very little of it is super easy to apply. I am, of course, driven by data, but more by the idea of a small amount of data that is critical for understanding and measuring progress and performance than the more common idea that more and more data and more and more precision is the way to go. The value of data is when data informs understanding.
From my perspective, one of the big issues is that most of the world's powerful decision makers believe that more and more profit for the corporate business world is automatically a good outcome. This is patently absurd, but very convenient for the rich and powerful. So much of what is wrong with the socio-enviro-economic system originates with ideas or myths that are good for the wealth of the top few percent, but not so good for everyone else.
Over the past many decades, the internal management of the corporate for-profit organization has been very strong with conventional financial accounting at its core and enhanced in recent years by more and more powerful computer assistance. When it comes to corporate profit performance, there has been amazing management progress.
All the other dimensions of the socio-enviro-economic system are essentially ignored. This is insane ... but it is the reality. The management and the measurement of 'profit' has little or no utility anywhere else in the system except the for-profit corporation.
I am, however, an enthusiast for the power of conventional double entry accounting, that is an accounting and reporting framework based on balance sheet accounts and profit and loss accounts ... something that is universally used in corporate accounting, but missing everywhere else. My goal is to apply these core ideas to the accounting for everything ,,, embracing social, economic and environmental issues in a coherent comprehensive system
When the world starts to invest in ACTIVITIES that do good for society, while generating a reasonable economic return on investment and degrading the environment only to a minimal extent ... there can be an improving world. But for improvement to be at scale this has to become widely adopted.
The good news is that there is a lot of talk about corporate social responsibility, sustainability, ESG, Triple Bottom Line, Purpose and a whole lot more ... but in the end, social outcomes and environmental outcomes don't get much better but rather get worse and metrics like corporate profits and stock markets go to record levels.
I reference activities because it is activities that make change ... but it is ACTORS that are responsible for decisions. Activities may be good for society and the environment or not depending on decisions made by people. Actors (people) are important but they must be accountable wherever they sit in the system.
Organizations are actors in their own right, but also as collectives of people. They must be accountable.
Places also have a role in the performance of the socio-enviro-economic system. Many modern cities have become seriously dysfunctional over the past 50 years ... a cycle that has happened throughout history ... but very visible in the USA in recent times.
I should also add that vastly improved metrics about the costs and impacts of products need to be in play. On this basis many products that are economically profitable would be socially costly as well as environmentally costly.
An emerging 'talking point' in recent months has been the idea that 'we are all in this together'. This is an important idea, and I wish it were true. It would also be good if we were all in it together for the same good reasons.
I like the idea of personal opportunity, and the idea that an individual can make success through their own efforts ... but the playing field should be fair if not flat. In my vision of a better world everyone on planet earth should be seeing progress towards a better standard of living and quality of life ... everyone !!!!!!!!!!!!!!
For this to be realized the dream would be that everyone can access data about such progress, and the possibilities for improving the situation. This idea would have been silly just a few years ago ... but a spin-off of Facebook could probably do it quite easily !!!!!!!
More immediately I am looking to bend accounting, reporting and accountability for ALL the ACTORS in the direction of more comprehensive numbering ... numbering that embraces social progress and performance, economic progress and performance and environmental progress and performance.
I see progress as change in state. ... change in the balance sheet
I see performance as the resource use that results in a change in state. ... an enhanced profit and loss account that incorporates social and environmental impacts..
In the vision I have for better accounting, reporting and accountability, the numbering does not originate solely from inside the reporting entity (as it does right now) but reflects what actually happens as seen by outsiders. Imagine if there were the same sort of strong rules about reporting from the outside as there are reporting from the inside AND if the focus was not simply on the impact on investors, but the impact of every aspect of society and the environment not to mention economic impacts outside the conventional reporting envelope ... that is the supply chain, the post production distribution, use and disposal and all the multitude of impacts along the way. .
In the accounting, accountability and reporting system that I want to see, there is ,also a need for better metrics about place.
_____________________________
Peter Burgess ... Founder and CEO
TrueValueMetrics ... Meaningful Metrics for a Smart Society
True Value Impact Accounting ... Multi Dimension for ALL the Capitals
http://www.truevaluemetrics.org
LinkedIn: www.linkedin.com/in/peterburgess1/
Slideshare: http://www.slideshare.net/PeterBurgess2/
Twitter: @truevaluemetric @peterbnyc
Telephone: 570 202 1739
Email: peterbnyc@gmail.com
Skype: peterbinbushkill
---------- Forwarded message ---------
From: Peter Burgess
Date: Wed, Dec 2, 2020 at 12:02 PM
Subject: Some thoughts about a Camden Place Program
To: Alphonso Coles
Dear Alphonso
It is slow, but I am making progress on the RAS Camden Project financial model and it will be relatively soon that I feel comfortable with the financial characteristics of that project.
I am, as I think you are aware, deeply concerned that the RAS Camden Project will morph into a conventional financial investment with all its social and environmental downside unless there is a very strong financial model for a Camden Place Program.
I don;t know whether you noticed ... but in yesterday's Alliance Partnership / Urban Sea (AP/US) meeting, there was not one single mention of people ... whether it was the employees in the RAS project, or the residents of the Camden place. This is how investment planning gets done ... and it is also the reason why American urban centers have gone to hell over the past several decades. We are meant to be changing this.
There is a huge amount of work to be done ... and it will cost a lot of money to do it. I don't want to dilute the profit potential of RAS Camden by diverting money into social and environmental activities, but rather (1) to facilitate a completely separate funding flow and (2) to engage with all sorts of others who are already working (struggling) to improve Camden doing their own (maybe small) thing.
My goal with TVM is for the management ... that is the social, environmental and economic management ... of a place should be as rigorous as the financial management in a well run corporation ... with every activity getting the resources needed to get the job done well with a minimum of waste. Every sector should be addressed: Police, Courts, Prisons, Health, Education. Public Works; Roads and Bridges, Water and Sewage, Housing (Public and Private). Public Transport, Parks and Recreation. Environmental Safety ... etc etc etc. The question of governance and professional services like law and accountancy need to be addressed ... the role of budgets and the role of finance and the role of taxation and tax holidays. In other words every aspect of the place should be modelled in a way that ensures that the outcome is a better quality of life for the people of the place.
More than anything else we need to know as much as possible about the people (demographics) of the place ... and start to have data about change over time.
In aggregate we need to know something about the macro-fund flows of the place over time ... the money coming in, the money going out, and where the money gets spent in the community, for what and by whom. We know the people in the community have lost out over the past several decades ... but who have been the winners? How has this come about?
What are the activities of the place? Where do people go to work?
Who are the actors? Who are the activists? Where do they get their money? Can they be a force for good?
In my ideal world all of this data would be easily accessible and tracked over time as the foundation for ongoing support for funding flows from both private and corporate philanthropy ... including a philanthropic dimension of the RAS Camden Project.
It has crossed my mind that EVERY Congressional District in the country should be subject to this sort of management oversight so that these folk get their feet held to the fire ... as well as all the other elected officials up and down the ballot. But just as important, this can be the foundation for identifying financial abuse by those with power and influence.
This is not a complete pipe-dream ... it is foundational for any civilized society and it can be done. But it does require a certain amount of grit and chutzpah!
Let's talk, Skype, whatever at your convenience
Best
PeterB
+
_____________________________
Peter Burgess ... Founder and CEO
TrueValueMetrics ... Meaningful Metrics for a Smart Society
True Value Impact Accounting ... Multi Dimension for ALL the Capitals
http://www.truevaluemetrics.org
LinkedIn: www.linkedin.com/in/peterburgess1/
Slideshare: http://www.slideshare.net/PeterBurgess2/
Twitter: @truevaluemetric @peterbnyc
Telephone: 570 202 1739
Email: peterbnyc@gmail.com
Skype: peterbinbushkill
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