<aside> <img src="https://prod-files-secure.s3.us-west-2.amazonaws.com/49de0235-e8bc-4eca-bf20-2a9d6d267a02/b047bd39-2b00-497b-87c1-fe4a570db8c7/10A803A6-B6B6-45F1-9EEE-FE6168C88494.jpeg" alt="https://prod-files-secure.s3.us-west-2.amazonaws.com/49de0235-e8bc-4eca-bf20-2a9d6d267a02/b047bd39-2b00-497b-87c1-fe4a570db8c7/10A803A6-B6B6-45F1-9EEE-FE6168C88494.jpeg" width="40px" /> Lev 19:23-25 ”When you come into the land, and have planted all kinds of trees for food, then you shall count their fruit as uncircumcised. Three years it shall be as uncircumcised to you. It shall not be eaten. But in the fourth year all its fruit shall be holy, a praise to the LORD. And in the fifth year you may eat its fruit, that it may yield to you its increase: I am the LORD your God.” **
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Thirteen years ago, I had a conversation with a charcoal sketch artist peddling his spot-art on the streets of Davao, for 15 Sing dollars per portrait. Even then, some thought it was daylight robbery to pay 600 pesos for his face sketches. A few clients had even requested refunds, dissatisfied with the results.
Fast forward to last month, the same artist, Macky, picked me up from the airport in his brand new SUV, fully purchased upfront with cash. He took me to his secluded island retreat, a hilltop hideaway with a secret, unmarked entrance overlooking the city from across the straits. This is where he used to struggle to make ends meet.
His life changed after being "discovered" by the city mayor, who later became the president, Rodrigo Duterte. Now, Macky sells his portraits for millions depending on who the collectors are and what impact they are making on society.
Reflecting on his journey, Macky marvelled at how he rose to the top of his trade in just 13 years. Today, in his mid-30’s, he is among the highest-earning portraiture artist in his country. He never went to school; I had even discouraged him from seeking a 'degree' at La Salle, fearing it might “corrupt” his talent.
Macky's fame has grown to the point where he literally has to hide away on an island. Out of 1,000 requests, he turns away 998, living off the proceeds from just 2 or 3 paintings, which he can complete in a few weeks. The rest of his time, he spends sitting under a waterfall, drawing inspiration for his next masterpiece.
Impact-based eco-systems (IBE) is an attempt to describe the kind of mojo I am observing more and more in athletes, artists and stand-ups who have made it to new heights not by working harder but understanding what money cannot ever buy.
Impact-based eco-systems measures the societal impact of economic activities rather than work time. It includes environmental effects, social impact, and income distribution. Although complex, it offers a more comprehensive view of the economy.
Time-based eco-systems (TBE) measures economic output by the total hours worked, while impact-based eco-systems considers the effect of economic activity on society.
Time-based eco-systems, the traditional method, multiplies total work hours by the average wage rate to calculate total output. Its limitation is overlooking work quality and the societal or environmental impact. It’s the difference between getting a job and making a fortune.
Think about standing armies vs. special forces. Standing armies are always ready and tackle different dangers. Special forces do specific, often risky, tasks. Both are important for protecting a country but they do different things. Like the US Marines say: “amateurs talk strategy, professionals talk logistics”.
Think about a family doctor and a heart surgeon. This shows the difference between being paid for time and being paid for what you do. The doctor might see 20 patients and the surgeon might do a 6-hour operation. They do the same amount of work. But if you think about the effect of the work, the surgeon's operation that saves a life might be worth more.
The difference between counting the number of seeds in one apple and counting the number of apple trees in each seed can be seen as a metaphor for the difference between these two types of ecosystems.
Counting the seeds in an apple is akin to time-based economics, as it focuses on the immediate, tangible output. This is similar to how time-based eco-systems measure the value of work based on the amount of time spent on it. However, this approach may not fully capture the potential value of the seeds, as each seed has the potential to grow into an apple tree that can produce many more apples.
On the other hand, counting the number of apple trees in each seed is akin to impact-based eco-systems, as it looks at the potential long-term impact of each seed. This is similar to how impact-based eco-systems measure the value of work based on its impact on society, rather than the time spent on it. This approach recognises that each seed - or each hour of work - has the potential to create a much larger impact on society.
An impact-based approach means the value of an action may not be obvious immediately, but can show up over time. For instance, a life coach is valued by the positive changes they create in society. These changes include innovative ideas from their trainees, personal growth, and improved mental health.
A high performance coach who boosts customer service skills in the hotel staff can make customers happier, make them return, and help retain staff. This improves the industry's performance, making good coaches in high demand.