image missingTrue Value Metrics (TVM)
Meaningful Metrics for a Smart Society
image missing Navigation ... HOME
HOME BRIEF PROBLEMS
POSSIBILITIES
SYSTEM
OVERVIEW
PROGRESS
PERFORMANCE
STATE
CAPITALS
FLOW
ACTIVITIES
FLOW
ACTORS
EFFECTIVE
MANAGEMENT
PETER
BURGESS
SiteNav SitNav (1) SitNav (2) SitNav (3) SitNav (4) SitNav (5) SitNav (6) SitNav (7) SitNav (8)
Date: 2019-09-22 Page is: DBtxt001.php L07-11-MANAGEMENT-retired-190523

TRUE VALUE METRICS
.
SECTION IV
.
MANAGEMENT
MOVING THE NEEDLE ON IMPORTANT ISSUES
.
Peter Drucker famously said you manage what you measure ...
This is undoubtedly true ... in the corporate world, the components that go into making profit are measured intensely in order to improve profit performance ... and it works!
Unfortunately, we don't do anything like the same amount of measuring in order to improve society and avoid degrading the environment ... and we don't have any easy way of talking about social performance and environmental performance in the same way that we are able to talk about corporate performance and investment portfolio performance. This has to change
We argue that you had better measure the right things
.
.
ABOUT THE TVM INITIATIVE
image missing Numbering the Triple Bottom Line

Accounting for ALL the Capitals
image missing
TRANSPARENCY and ACCOUNTABILITY
METRICS TO MAKE THE WORLD A BETTER PLACE
  • Uses the core concepts of conventional accountancy.
  • Enhances the concepts to address the issue of social impact.
  • Also incorporates the impacts linked to environmental changes.
  • Considers multiple perspectives beyond the corporate reporting entity.
  • Accounts for impacts of any activity on social, natural and economic capitals.
  • Accounts for energy use in processes and embedded in products.
  • Acccounts for social impact associated with profile of payroll.
  • Accounts for impacts that have material impact on sustainability.
Data at the Center Data Everywhere
These schematics were drawn around 1995 early in the days of electronic data collection. What was expensive then, has now become relatively low cost. However, the challenge remains to make use of data in a meaningful way so that better decision get made.
.
ACCOUNTING FOR EVERYTHING THAT MATTERS
THE TRENDS ARE CATASTROPHIC
ACCOUNTING FOR SOCIAL, ECONOMIC AND NATURAL CAPITALS
COLOR CODE DISTANT PAST PRESENT NOT GOOD FUTURE COLLAPSE
What science shows is that nature is the foundation for everything. Most of the time there is a complex natural balance or equilibrium, but periodically it gets out of balance and many changes take place very rapidly until another equilibrium is found. Because of humankind's economic activity we have arrived at a tipping point and the equilibrium has been disturbed. It is impossible to predict what future the changes will be .,.. but we do know that there will be massive change and it is unlikly that humankind will have the capacity to do very much about it. BE WARNED! GDP growth will aggravate this crisis, not solve it, but smart policy and technological investment and deployment might mitigate the problem significantly. Inaction is criminal.
Aggregated Socio-Enviro-Economic Trends
What has been happening ... What needs to happen in the immediate future
THE WHOLE SYSTEM THE ACTUAL PAST A NO CHANGE FUTURE A BETTER FUTURE
More and more DEPLETION and DEGRADATION of NATURAL CAPITAL is UNSUSTAINABLE
⚫ Productivity and profits have increased ECONOMIC CAPITAL substantially over decades.
⚫ Meanwhile massive increase in inequality has compromised SOCIAL CAPITAL.
⚫ Most industrial activity has resulted in dangerous degradation of NATURAL CAPITAL.
⚫ Continuing in this way is an existential risk. There is a scientific consensus that massive changes are essential.
⚫ A better way is essential ... a system that enables prosperity without environmental damage
.
THERE IS AN IMPORTANT IDEA IN ACCOUNTANCY THAT IS VERY POWERFUL
Balance sheet improvement over time is progress. Measure the changes, and you measure progress.
NO CHANGE IN BALANCE SHEET
STEADY STATE
GROWTH IN THE BALANCE SHEET
POSITIVE PROGRESS / VALUEADD
DIMINUTION OF THE BALANCE SHEET
VALUE DESTRUCTION
.
CONVENTIONAL ACCOUNTANCY IS WELL ESTABLISHED
Good accounting embraces both P&L Accounts and Balance Sheet Accounts
Profit and Loss Account (P&L A/C) P&L A/C with Balance Sheets
.
TVM Enhanced Accounting also embraces the impacts on externalities
Add Good Impact Deduct Bad Impact Report both Good and Bad
Enhancing the Profit and Loss Account
Adding in the BAD impacts Adding in the GOOD impacts
Combined Financial Impact plus the Externalities
.
Only Financial / Only Entity Enhanced / Only Entity Enhanced plus impact on State
Profit and Loss Account with Enhancement
Conventional Entity Focus TVM Enhanced Focus with Externalities
TVM Enhanced Focus with ALL the CAPITALS
.
ALL ACTIVITIES (PROCESSES) CHANGE ALL CAPITALS (STATE)
These reflect more and more detail about the framing and inclusion of externalities
.
THIS IS BASIS FOR ACCOUNTING FOR EVERYTHING
Everything is summarized along the same lines as a financial consolidation
Enhanced Reporting for any Entity Which also may look like this
Processes / Entities adding up to a PRODUCT
Processes / Entities adding up to a PLACE
Processes / Entities adding up to an ORGANIZATION
Various elements adding up for a PERSON
.
SITE NAVIGATION ... NAVBAR MENU
SITE
NAV
CONTEXT
ISSUES
POSSIBILITIES
HOW THE
WORLD
WORKS
SECTOR
PROCESS
IMPACT
STATE
ALL THE
CAPITALS
ACTORS
PEOPLE
ORGANIZATIONS
PRODUCTS
STUFF
CONSUMPTION
PLACE
COMMUNITIES
COUNTRIES
PEOPLE
QUALITY
OF LIFE
NATURE
SOURCE of
all VALUE
ECONOMY
MONEY
LIQUIDITY
TRUEVALUE
DATA at
the CENTER
ABOUT
VISION
STRATEGY
INPAGE >>> (1) How the World Works (2) STATE - All Capitals (3) FLOW - Activities (4) MANAGEMENT
SITE NAVIGATION >>> SITE-NAVIGATION (0) TVM-BRIEF (1) How the World Works (2) STATE - All Capitals (3) FLOW - Activities (4) MANAGEMENT


The text being discussed is available at

SITE COUNT
Amazing and shiny stats
Blog Counters Reset to zero January 20, 2015
TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends plus donations from well wishers who understand the importance of accountability and getting the management metrics right. TVM is a 'big idea' that has the potential to be a game changer leveling the playing field so the wealth and power is shared on a more reasonable basis between people who work for a living and those that own the economy and the levers of power. In order to be effective, it cannot be funded in the conventional way with a for profit business plan, but absolutely must remain an open access initiative.
WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WILL HELP MAKE THAT HAPPEN


The information on this website may only be used for socio-enviro-economic performance analysis, personal information, education and limited low profit purposes
Copyright © 2005-2019 Peter Burgess. All rights reserved.