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Meaningful Metrics for a Smart Society
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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
SITE NAVIGATION >>> SITE-NAVIGATION (0) TVM-BRIEF (1) How the World Works (2) STATE - All Capitals (3) FLOW - Activities (4) MANAGEMENT
Date: 2019-04-22 Page is: DBtxt001.php L07-HOW-SEES-WORKS


HOW THE WORLD WORKS
SOCIO-ENVIRO-ECONOMIC SYSTEM
ALL THE CAPITALS / ALL THE PROCESSES

NOT JUST THE FINANCIAL DIMENSION ... BUT ALSO PEOPLE, SOCIETY AND THE ENVIRONMENT
IT'S A COMPLEX WORLD!
... and it is being gamed for the benefit of those who own financial capital
at the expense of those that don't, without adequate concern for the
depletion and degradation of natural capital
.
CAPITALS
SOCIAL
CAPITAL


SOCIO
NATURAL
CAPITAL


ENVIRO
ECONOMIC
CAPITAL


ECONOMIC
IMPACT ON ALL THE CAPITALS
Optimization for profit has been very effective and financial wealth (a component of economic capital) has grown robustly for the past 40 years. The impact on society has been much less positive with wages flatlining since around 1980. The impact on the environment (natural capital) has been catastrophically negative, and now posing an existential risk to the future of humanity.
STATE / ALL THE CAPITALS
NOT JUST THE FINANCIAL CAPITAL
Open L07-STATE-ALL-THE-CAPITALS
PROGRESS - PERFORMANCE / CHANGE IN STATE
CHANGE FOR ALL THE CAPITALS ... NOT JUST FINANCIAL CAPITAL
Open L070-PP-PROGRESS-PERFORMANCE
PROGRESS - PERFORMANCE / CHANGE IN STATE
CHANGE FOR ALL THE CAPITALS ... NOT JUST FINANCIAL CAPITAL
Open L0700-PP-PROGRESS-and-PERFORMANCE
.
ACTIVITIES
SOCIETY

CONSUMPTION
ENVIRONMENT

DEGRADATION
ECONOMY

PROFITS
ACTIVITIES IMPACT ALL CAPITALS
What is good for one part of the system may not be good for other parts of the system. For a long time, decision makers have optimized for business profit and the accumulation of wealth while ignoring negative impacts on society and the environment. A free lunch always comes at someone's cost. There is going to be a reckoning.
ACTIVITIES / SECTORS / STREAMS
FLOWS THAT IMPACT STATE (ALL THE CAPTALS)
Open L07-ACTIVITIES-SECTORS-STREAMS
.
ACTORS
PEOPLE
as ACTORS


ORGANIZATIONS
as ACTORS


GOVERNMENT
as ACTORS

PEOPLE make ALL the decisions
PEOPLE make decisions ... often within ORGANIZATIONS ... and in GOVERNMENT. PEOPLE have to be held accountable for the decisions they are making. Management DATA have a role in making accountability timely and meaningful.
ACTORS / PEOPLE / ORGANIZATIONS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
PEOPLE-as-ACTORS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L0700-PE-AC-PEOPLE-as-ACTORS
ORGANIZATIONS-as-ACTORS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L0700-OG-AC-ORGANIZATIONS-as-ACTORS
GOVERNMENTS-as-ACTORS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L0700-GO-AC-GOVERNMENTS-as-ACTORS
.
MANY FLOWS / MANY PERSPECTIVES
PRODUCTS

PLACES
PROCESSES

TrueValueMetrics is multi-perspective and multi-dimensional ... and as simple as possible using standard profile benchmarks to assess actual performance of everything. Supply chains circle the world creating profits and pollution along the way. There is rigorous accounting for profit and almost none about pollution. This is dangerous and must be changed.
PRODUCTS / STUFF / CONSUMPTION
SUPPORT QUALITY OF LIFE / EARN PROFITS / PROVIDE JOBS
Open L07-PRODUCTS-STUFF-CONSUMPTION
PLACE / COMMUNITIES / COUNTRIES
WHERE LIFE IS LIVED ... WHERE EVERYTHING COMES TOGETHER
Open L07-PLACE-COMMUNITIES-COUNTRIES
PLACE / PLACES
EVERYTHING COMES TOGETHER IN A PLACE
Open L070-PL-PLACE-PLACES
PRODUCTS
PRODUCTS DELIVER QUALITY OF LIFE ... AND POLLUTION
Open L070-PD-PRODUCTS
PROCESSES
PROCESSES DELIVER PRODUCTS, PROFITS ... AND POLLUTION
Open L070-PC-PROCESSES
.
VALUE ADD FROM PEOPLE
People are both beneficiaries and contributors
STATE

CONTRIBUTION

COST of LIVING
CREATING A BETTER WORLD
PEOPLE are the most important actors and beneficiaries of progress. Modern progress is unsustainable as it is and must be changed. This can be done if the priorities are right. Profit cannot be the only and dominant metrics for success. Social impact and environmental impact matter as well.
L070-PE-PEOPLE
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L070-PE-PEOPLE
.
VALUE ADD FROM NATURE
Ecosystem services contribute to society and the economy
STATE

ECOSERVICES

DEGRADATION
THE SOURCE OF EVERYTHING
Nature is the driver of everything. Since the beginning of the industrial revolution people have exploited natural resources to improve society and create financial wealth. This has now become dangerously unsustainable and must be changed.
ECOSYSTEM SERVICE IMPACT
NATURE IS BASIS FOR EVERYTHING
Open L0700-CS-NC-E-ECOSYSTEM
.
VALUE ADD FROM ECONOMIC ACTIVITY
STATE

VALUE
REVENUES

CONTRIBUTION
EXPENSES
ALL IMPACTS
ENGINE OF PROGRESS
Economic activity has improved quality of life significantly over the past 250+ years, but without considering the damage done to parts of society and the environment. This is unsustainable.
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
Site Navigation
CONTEXT / ISSUES /POSSIBILITIES
SYSTEMIC FAILURES / HUNGER / POVERTY / HOPELESSNESS / DESTRUCTION
Open L07-CONTEXT-ISSUES-POSSIBILITIES
SEES ... the COMPLETE SOCIO-ENVIRO-ECONOMIC SYSTEM
FLOWS THAT IMPACT STATE (ALL THE CAPTALS)
Open LL070-SEES-COMPLETE-SYSTEM
ACTIVITIES / SECTORS / STREAMS
FLOWS THAT IMPACT STATE (ALL THE CAPTALS)
Open L07-ACTIVITIES-SECTORS-STREAMS
STATE / ALL THE CAPITALS
NOT JUST THE FINANCIAL CAPITAL
Open L07-STATE-ALL-THE-CAPITALS
ACTORS / PEOPLE / ORGANIZATIONS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
PRODUCTS / STUFF / CONSUMPTION
SUPPORT QUALITY OF LIFE / EARN PROFITS / PROVIDE JOBS
Open L07-PRODUCTS-STUFF-CONSUMPTION
PLACE / COMMUNITIES / COUNTRIES
WHERE LIFE IS LIVED ... WHERE EVERYTHING NEEDS TO COME TOGETHER
Open L07-PLACE-COMMUNITIES-COUNTRIES
PEOPLE / QUALITY OF LIFE
THE ESSENTIAL PURPOSE OF ALL ACTIVITY
Open L07-PEOPLE-QUALITY-OF-LIFE
NATURE / SOURCE OF ALL VALUE
EVERYTHING DEPENDS ON NATURE
Open L07-NATURE-SOURCE-OF-ALL-VALUE
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
TRUE VALUE / DATA at the CENTER
YOU CAN'T MANAGE WHAT YOU DON'T MEASURE
Open L07-TRUE-VALUE-DATA-at-the-CENTER
TVM / VISION and STRATEGY
Better metrics for ALL the ACTIVITIES, CAPITALS, ACTORS, PLACES and PRODUCTS
Open L07-ABOUT-VISION-STRATEGY
More about TrueValueMetrics
An initiative to use better metrics for decision making and accountability
Open L070-TVM
.
PEOPLE / SOCIAL CAPITAL
Determined in part by the INDIVIDUAL and FAMILY and FRIENDS
Determined in part by PLACE: Access to goods and services ... and community
An Individual

A better quality of life for everyone
The Family

The family an important part of the social structure
The Community
Good friends and community positive for quality of life
The Place
Everything comes together in a place ... or doesn't
Nature

The environment really matters ... for health and sustainability
The Economy

The dignity of work, and source of everything to enable the good life
PAST Genetics Parenting Nutrition Education Health Character Culture
PRESENT HAPPINESS ... m Housing ... more Material goods ... m Opportunities ... m Preparation ... m Employment ... more Income ... more
Wealth ... more Good health ... more Family ... more Community ... more Stress ... more Longevity ... more
PLACE ... more Clean air ... more Clean water ... more Good Food ... more Energy ... more Health service ... m Education ... more
Transport ... more Safety ... more Religion ... more Recreation ... more Culture ... more Community ... more
FUTURE PREPARATION OPPORTUNITY
ENVIRONMENT / NATURAL CAPITAL ... m
Social and Economic Progress has been achieved by the depletion and degradation of Natural Capital
LAND
Natural

Essential habitat for all sorts of living organizms ... more
LAND
Agricultural

Huge land areas now used for agriculture
LAND
Built up

Much land now built over with various types of economic development
FRESH
AIR

Fresh air is very good for human health and longevity ... more
FRESH
WATER

Without water there is no life, and now becoming increasingly scarce ... m
OCEAN
WATER

A huge energy sink, and where all the world's garbage accumulates ... m
MINERAL RESOURCES

The raw materials for most of the useful products we use every day ... m
FOSSIL
FUELS

The sources of power that made the industrial revolution possible ... m
CLIMATE
SYSTEMS

The essential mechanisms that have kept the climate stable until now ... m
ECOLOGICAL SYSTEMS

The many mechanisms that serve to recycle everything in nature ... m
BIODIVERSITY - FAUNA

Animals, birds, fish, reptiles, insects and other life forms ... m
BIODIVERSITY - FLORA

Millions of species of plants that occupy a complex ecosystem ... m
PROFITS / WEALTH / ECONOMIC CAPITAL ... m
Social and Economic Progress has been achieved by the depletion and degradation of Natural Capital
PHYSICAL CAPITAL
All of the people built systems and structures that make the modern economy function. ... m
Buildings

Buildings provide shelter and places to work but very inefficient ... m
Infrastructure

Many sorts of infrastructure are essential for a modern economy ... m
Processes

Modern production processes have become very efficient but energy intensive ... m
Transport

Transport and logistics are enabling global trade and sustainable development ... m
Working Capital

Inventory, receivables and financial liquidity are essential to a viable society and economy ... m
OTHER ECONOMIC CAPITALS
More people built systems and structures that make the modern economy function.
FINANCIAL

Money makes the world go round, but it is only a lubricant ... m
KNOWLEDGE

Education is foundational and essential for a better world ... m
INSTITUTIONAL

Organizations, rule of law, etc make an enabling environment ... m
CULTURAL

Dance, music, tradition, religion ... all sorts of good things that make life worth living ... m
LOCATIONAL

Place is where everything comes together and makes a difference ... m
Site Navigation
OVERVIEW / THE WHOLE SYSTEM
The SOCIO-ENVIRO-ECONOMIC SYSTEM (SEES)
Open L07-HOW-SEES-WORKS
SITE NAVIGATION
The SOCIO-ENVIRO-ECONOMIC SYSTEM (SEES)
Open L0700-SN-SEES
CONTEXT / ISSUES /POSSIBILITIES
SYSTEMIC FAILURES / HUNGER / POVERTY / HOPELESSNESS / DESTRUCTION
Open L07-CONTEXT-ISSUES-POSSIBILITIES
SECTOR / PROCESS / IMPACT
FLOWS THAT IMPACT STATE (ALL THE CAPTALS)
Open L07-SECTOR-PROCESS-IMPACT
STATE / ALL THE CAPITALS
NOT JUST THE FINANCIAL CAPITAL
Open L07-STATE-ALL-THE-CAPITALS
ACTORS / PEOPLE / ORGANIZATIONS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
PRODUCTS / STUFF / CONSUMPTION
SUPPORT QUALITY OF LIFE / EARN PROFITS / PROVIDE JOBS
Open L07-PRODUCTS-STUFF-CONSUMPTION
PLACE / COMMUNITIES / COUNTRIES
WHERE LIFE IS LIVED ... WHERE EVERYTHING NEEDS TO COME TOGETHER
Open L07-PLACE-COMMUNITIES-COUNTRIES
PEOPLE / QUALITY OF LIFE
THE ESSENTIAL PURPOSE OF ALL ACTIVITY
Open L07-PEOPLE-QUALITY-OF-LIFE
NATURE / SOURCE OF ALL VALUE
EVERYTHING DEPENDS ON NATURE
Open L07-NATURE-SOURCE-OF-ALL-VALUE
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
TRUE VALUE / DATA at the CENTER
YOU CAN'T MANAGE WHAT YOU DON'T MEASURE
Open L07-TRUE-VALUE-DATA-at-the-CENTER
TVM / VISION and STRATEGY
Better metrics for ALL the ACTIVITIES, CAPITALS, ACTORS, PLACES and PRODUCTS
Open L07-ABOUT-VISION-STRATEGY
More about TrueValueMetrics
An initiative to use better metrics for decision making and accountability
Open L070-TVM



The text being discussed is available at


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.
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