image missingTrue Value Metrics (TVM)
Meaningful Metrics for a Smart Society
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ABOUT TVM: Introduction to TrueValueMetrics

Introduction to True Value Metrics
Management Information for Society
True Value Metrics (TVM)is a system of socio-economic measurement that combines some of the rigor of accountancy with some of the concepts of other disciplines including economics, sociology and engineering.

TVM is based on the idea that measures of money and profit, GFP growth and stock market prices are not enough to achieve optimum allocation of resources. There must also be measures about quality of life and issues like long term sustainabillity.

The TVM system is designed to help interested people have more access to actionable information without massive data overload. Data are aggregated so that the State of a Community may be tracked over time and its Progress measured. The Performance of organizations, activities and people relative to Progress is a function of resources used and value created. All of this is analogous to the Balance Sheet and the Profit and Loss Accounting in the business world, except it is value addition and value destruction that stands in for profit and loss!

Accoringly, the database is community centric with organizations, people, projects, activities and all sorts of issues associated with the community. The system makes accountability meaningful at the communityi level. No amount of coordination at the Top of the Pyrmanid (ToP) is going to help very much in making effective Progress out of Poverty, but coordination and improved decision making at the community level at the Bottom of the Pyramid can have a huge impact.


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ABOUT TVM
Introduction to the TVM system

People at the center of everything

The Basic Concepts of TVM ... in book format


HISTORY
About the old Tr-Ac-Net

About Community Accountancy from 2008

About the TAAME initiative from 2006

Tr-Ac-Net and Members from 2007

Some old text from 2000 to 2008 The old CCSD webpage from around 2006
True Value Metrics uses data everywhere

Community
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The informal trading sector ... small enterprises ... represent most of the sustainable economy of Uganda and benefit substantially from increased economic activity in the community.
More than anything else, the database has a focus on community information. With this information it becomes possible to see the impact of policy and development initiatives at the community level where people live. The aggregates and the averages that have been used to develop policy at the TOP have not been effective - so better information are needed. Community level information relevant to the BOP will be a great improvement.

Organizations
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The informal trading sector ... small enterprises ... represent most of the sustainable economy of Uganda and benefit substantially from increased economic activity in the community.
Organizations have been critical in the productivity improvements achieved over the past 200 years, but organizations need to be transparent and accountable or it likely degenerates into a powerful, perhaps profitable, and usually dangerous entity. In the Tr-Ac-Net database and analysis framework, the activities of the organization at the community level are related to the performance of the community and the impact of the business value chain in delivering value to the community.

People
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People are the ultimate source of global energy and inspiration, and the beneficiaries of economic accomplishment. With the simplistic analysis of business school trained accountants and economists, the role of value in human society has been reduced to a money number and achievement has been stifled. This has to be changed so that the human being becomes the focus of effort and of impact.

Projects
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The informal trading sector ... small enterprises ... represent most of the sustainable economy of Uganda and benefit substantially from increased economic activity in the community.
The project form of organization is widely used in the international relief and development sector, and is one of its weaknesses. A typical project has a finite and short life while many of the issues that need addressing have an indertiminate and long life. Worse, the project has been used to provide the accounting and accountability ... for itself ... and not surprisingly, the information is not to be trusted.

Activities and impact
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The informal trading sector ... small enterprises ... represent most of the sustainable economy of Uganda and benefit substantially from increased economic activity in the community.
Rather than looking to organizations and projects to provide the data about performance, the Tr-Ac-Net approach is to look at activities and impacts in a community ... and then relate these to the people and organizations that have been responsible. What is very clear is that the community has seen amazing benefit from good people with little resources, and rather little meaningful benefit from large organizations with power and wealth, but seamingly little interest in community progress.

Violence
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Monrovia, Liberia around 1989. UN troops were too late to stop horrendous killings. The buildings in the background were occupied by the US company, Continental Seafoods in the 1970s. Whatever happened to the idea of NEVER AGAIN?
Military science has increased our human capacity for destruction in a terrible way during the last century. The consequences have been terrible. While the experience of the two World Wars helped some nations to work hard to avoid more war and its awful consequences, much of the world has lurched from one violent crisis to another. The Tr-Ac-Net database includes the issue of violence in the dialog section, and relates this to the associated value destruction. The system also looks at the value chains that result on some economic entities profiting from war and violence.

Infrastructure
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Rural roads need to be functional ... they do not need to be built to main road standards, but should be passable in the rainy season.
The world pays attention to large scale infrastructure, but it is the lack of small infrastructure that is the biggest issue for most people living at the bottom of the pyramid, and challenged every day by the lack of infrastructure that is very mundane. The fact that this small infrastructure is ignored reflects on the relief and development system, and the lack of relevant information so that these matters can be addressed effectively

Children
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This child in Eastern Sudan is severely malnourished. In good times this is a harsh environment, but with conflict the situation is made dramatically worse.
Children are at risk. They need care and attention at the best of times, but in many places there are multiple challenges for children. There are as many as 10 million children that are dying every year from causes that should not be lethal. The pictures of at risk childen are used to raise money, but the changes being made to improve the situation seem to be limited. The facts need to be on the record!

Environment
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The environment is often challenging ... but poor people operating under adversity can make very good use of modest incremental help.
The environment has suffered during the course of the last 200 years. Part of this had its origins in the filth of the industrial revolution, and some results from the increase in population and the prevalence of poverty. Environment needs to be a part of the framework for analysis and changes in environmental conditions included in the metrics.

The database puts structure around a large amount of data, and makes the data available in a way to make the data meaningful.

The challenges of society must not be treated in a simple and simplistic manner. The techniques being used for the True Value Metrics database have the potential to get a very large body of data organized in a way that will facilitate analysis and make it possible to make very much better decisions, and hold people and organizations accountable.





CAVEAT. The information on this website may only be used for socio-economic performance analysis, personal information and limited low profit purposes
Copyright © 2005-2011 Tr-Ac-Net Inc. Peter Burgess. All rights reserved.