image missingTrue Value Metrics (TVM)
Meaningful Metrics for a Smart Society
image missing Navigation ... HOME
HOME
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
Date: 2019-03-23 Page is: DBtxt001.php L070-SEES-COMPLETE-SYSTEM


SOCIO-ENVIRO-ECONOMIC SYSTEM
COMPLETE SYSTEM
HUGE ... COMPLEX ... AND AMAZING


HUGE COMPLEX SYSTEM
HOW IT ALL FITS TOGETHER
CAPITAL / STATE GO InPage SEES-1 Open L070-CS-CAPITAL-STATE

HUGE SYSTEM ... VERY COMPLEX
HOW IT ALL FITS TOGETHER

The system is very complex with many competing agendas!

Top down management of this system for best results is impossible
Better results can be achieved by many fast incremental improvements and effective metrics and feedback.
GO TOP
By thinking in terms of three critical segments, the complexity of the system may be organized in a somewhat coherent manner: PEOPLE (Social Capital), ENVIRONMENT (Natural Capital) and the ECONOMYC (Economic Capital)
THREE (3) SEGMENTS
Social Capital
Natural Capital
Economic Capital
#1 ... SOCIAL CAPITAL
The PEOPLE segment ... EVERYTHING ABOUT SOCIETY AND QUALITY OF LIFE FOR PEOPLE:

Optimizing for HUMAN CAPITAL and SOCIAL CAPITAL may represent a very different priority for investors and corporate decision makers but it is essential for peace and prosperity in the modern world. There was a time when the constraint on quality of life was the ability to produce the goods and services people need and a shortage of labor, but in the modern world a different set of limits have emerged and the critical limitation is to avoid depletion of natural capital with degradation of the environment and possible changes to the critical equilibrium of the socio-enviro-economic system.
SOCIAL CAPITAL Open L0700-CS-SC-SOCIAL-CAPITAL
HUMAN CAPITAL Open L0700-CS-SC-HC-HUMAN-CAPITAL
RELATIONSHIP CAPITAL Open L0700-CS-SC-RC-RELATIONSHIP-CAPITAL
LOCATIONAL CAPITAL Open L0700-CS-SC-LC-LOCATIONAL-CAPITAL

NATURAL CAPITAL
NATURE ... UPON WHICH EVERYTHING IS BASED, BUT COMPLETELY IGNORED IN THE PREVAILING METRICS OF PERFORMANCE

EVERYTHING has its origin in the amazing NATURAL CAPITAL which exists on planet earth
Modern knowledge about matural capital is enormous, yet only a tiny part of everything there is to know.
NATURAL CAPITAL has been the source of all FINANCIAL CAPITAL and PHYSICAL CAPITAL and it is essential that the use of financial capital is optimized for the benefit of us all, and quickly.
NATURAL CAPITAL Open L0700-CS-NC-NATURAL-CAPITAL

ECONOMIC CAPITAL
CREATED CAPITAL ... PEOPLE BUILT SYSTEMS AND STRUCTURES ... AMAZING SYSTEMS THAT HAVE BEEN CRITICAL FOR IMPROVEMENT IN QUALITY OF LIFE ... BUT AT SOME CONSIDERABLE COST TO THE ENVIRONMENT, AND THE PLANET UPON WHICH EVERYTHING DEPENDS

The creations of people have improved quality of life in amazing ways over the past 200 years.
ECONOMIC CAPITAL Open L0700-CS-EC-ECONOMIC-CAPITAL
FINANCIAL CAPITAL
It is wealth ... it is money ... which is both essential and dangerously misunderstood and a constraint in so many ways ...
Open L0700-CS-EC-FC-FINANCIAL-CAPITAL
PHYSICAL CAPITAL
Comprises all the engineering and technology that makes production possible ... and the buildings and the infrastructure ...
Open L0700-CS-EC-PC-PHYSICAL-CAPITAL
Buildings
Open L0700-CS-EC-PC-Buildings
Infrastructure
Open L0700-CS-EC-PC-Infrastructure
Processes
Open L0700-CS-EC-PC-Processes
Products
Open L0700-CS-EC-PC-Products
Working Capital
It is the stock of materials, finished goods and money that are needed to support the continuous flow of production and commerce ...
Open L0700-CS-EC-PC-Working-Capital
INTANGIBLE CAPITAL
Open L0700-CS-EC-IC-INTANGIBLE-CAPITALS
Knowledge Capital
Comprises knowledge ... and the foundation for the amazing technology that has been invented and deployed ...
Open L0700-CS-EC-IC-Knowledge-Capital
Institutional Capital
It is all the organization and organizations that make it possible to get things done ...
Open L0700-CS-EC-IC-Institutional-Capital
Cultural Capital
It is a dimension of capital that gives color and beauty to life in a multitude of interesting ways ...
Open L0700-CS-EC-IC-Cultural-Capital
Heritage
It is a dimension of capital that gives color and beauty to life in a multitude of interesting ways ...
Open L0700-CS-EC-IC-Heritage

HOW THE THREE SEGMENTS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM HAVE CHANGED OVER TIME
Huge amounts of Natural Capital have been converted to create Financial Capital in the last 200 years!
Planetary boundaries are being exceeded, with only modest efforts to remediate Natural Capital
A series of images that describe the way the 3 segments of the system have changed over time

A simple series that shows how the relative scale of the three main segments of the socio-enviro-economic system have changed over time, until now when we have the risk of existential collapse of the system Open L0700-SEES-changes-over-time

MEASURING PROGRESS AND PERFORMANCE
ORGANIZING THE ELEMENTS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM to ENABLE EASY MEASUREMENT
GO TOP
ACTIVITIES DELIVER RESULTS
Details of activities are not needed to measure PROGRESS
PROGRESS is the increase in VALUE (of the STATE) from beginning to end of the period

Simply measure the change in the VALUE or everything
PROGRESS AND PERFORMANCE Open L070-PP-PROGRESS-PERFORMANCE
ECONOMY / Profit, Stock prices, GDP Open L0700-PP-ECONOMY
PEOPLE / SOCIETY Open L0700-PP-SOCIETY
ENVIRONMENT Open L0700-PP-ENVIRONMENT

If we think of the Socio-Enviro-Economic system in this way: a People piece, and People Built System piece, and a Nature piece ... Open L0700-SEES-measuring-P-and-P

Elements of the System by Segment (I)
Elements of the System by Segment (II)

Segments of the PEOPLE BUILT SYSTEM Open L0700-SEES-describing-the-elements

PEOPLE BUILT SYSTEM ...

PEOPLE BUILT SYSTEM ... FINANCIAL CAPITAL
Financial Capital is part of Man Built Capital but separated out for the purpose of analysis because it has become such an important part of the conventional way of measuring … specifically:
(1) business profit;
(2) capital market valuations; and,
(3) GDP growth.

PEOPLE BUILT SYSTEM ... INTANGIBLE CAPITAL ... Institutional Capital

PEOPLE BUILT SYSTEM ... INTANGIBLE CAPITAL ... Knowledge Capital
Knowledge Capital ... What we know enables productivity and performance. ... Some of this is shared universally and is available for free use, and some is owned by Individuals and Business entities and may be used for their private gain at the expense of society as a whole.
Knowledge Capital ... Knowledge Capital is expanding rapidly … faster than at any previous time in history. ... Important parts of Knowledge Capital have been created with Government funds, often for military and security purposes.

SOCIO-ENVIRO-ECONOMIC SYSTEM
ALL THE CAPITALS / ALL THE PROCESSES

NOT JUST THE FINANCIAL DIMENSION ... BUT IMPACT ALSO ON PEOPLE, SOCIETY AND THE ENVIRONMENT
GO TOP
STATE / ALL OF CAPITAL
THE WIDELY ACCEPTED SIX CAPITAL SEGMENTATION
The critical idea is that ALL of capital is brought into account, not just financial capital
Open L0700-CC-CAPITALS
HUMAN CAPITAL
PEOPLE / QUALITY OF LIFE / COST OF LIVING / CONTRIBUTION TO SOCIETY

Human Capital / Babies / Families / Healthy Food
Open L0700-HC-HUMAN-CAPITAL
SOCIAL / RELATIONSHIP CAPITAL
PEOPLE IN GROUPS / IN COMMUNITIES / IN SOCIETY

Families / Friends / Communities / Connections
Open L0700-SC-SOCIAL-RELATIONSHIP-CAPITAL
NATURAL CAPITAL
NATURE / NATURAL SYSTEMS / NATURAL RESOURCES

Planet Earth / Land/ Air / Water / Trees / Storms /
Open L0700-NC-NATURAL-CAPITAL
CREATED PHYSICAL CAPITAL
BUILDINGS / INFRASTRUCTURE / MACHINERY AND EQUIPMENT / TRANSPORT EQUIPMENT

Indusrial Plant / Buildings / Vehicles / Bridges / Rail / Water / Ports /
Open L0700-CPC-CREATED-PHYSICAL-CAPITAL
CREATED INTANGIBLE CAPITAL
RULE OF LAW / SECURITY / KNOWLEDGE / CULTURE / INSTITUTIONS / ETC.

Laws / Justice / Security / Knowledge / Culture
Open L0700-CIC-CREATED-INTANGIBLE-CAPITAL
CREATED FINANCIAL CAPITAL
MONEY WEALTH / MONETIZED VALUE

Money / Profit growth / GDP growth / Stock Prices / Cost push inflation / Wages chasing prices
Open L0700-CFC-CREATED-FINANCIAL-CAPITAL

STATE ... CAPITALS
FLOW ... PROCESS - STREAMS / STRANDS / STRINGS - SECTORS / INDUSTRIES

ALL THE PROCESSES
THE IMPACT OF ACTIVITIES / STREAMS / SECTORS

These are responsible for the amazing improvement in quality of life and standard of living over the past 200 years, and also responsible for the degradation of the environment. The efficiency of these are the key to a better world.
Open L0700-RE-PROCESSES
SECTORS / INDUSTRIES
SPECIALIZATION IN SECTORS HAS DELIVERED MAJOR EFFICIENCIES THROUGH SPECIALIZATION

PROCESSES THAT HAVE ENABLED PRUDUCTIVITY SO THAT PEOPLE ARE NOT CONSTAINED BY THE AVAILABILITY OF PRODUCTS
Open L070-SI-SECTORS-INDUSTRIES
AGRICULTURE - CROP
Open L0700-SI-AGRICULTURE-CROP
AGRICULTURE - LIVESTOCK
Open L0700-SI-AGRICULTURE-LIVESTOCK
BANKING-FINANCIAL-SERVICES
Open L0700-SI-BANKING-FINANCIAL-SERVICES
CONSTRUCTION
EDUCATION
Open L0700-SI-EDUCATION
FISHERIES
Open L0700-SI-FISHERIES
GOVERNMENT-PUBLIC-SECTOR
Open L0700-SI-GOVERNMENT-PUBLIC-SECTOR
HEALTH
Open L0700-SI-HEALTH
INVESTMENT
Open L0700-SI-INVESTMENT
LOGISTICS
Open L0700-SI-LOGISTICS
MEDIA
Open L0700-SI-MEDIA
MILITARY INDUSTRY COMPLEX
Open L0700-SI-MILITARY-INDUSTRY-COMPLEX
Military
Open L0700-SI-Military
Mining
Open L0700-SI-Mining
POLICE
Open L0700-SI-POLICE
POLITICS
Open L0700-SI-POLITICS
PROFESSIONS
Open L0700-SI-PROFESSIONS
Pulp-Paper
Open L0700-SI-Pulp-Paper
Iron-and-Steel
Open L0700-SI-Iron-and-Steel
Shipping
Open L0700-SI-Shipping
TECHNOLOGY
Open L0700-SI-TECHNOLOGY
TRANSPORT
Open L0700-SI-TRANSPORT
TRANSPORT-AIRCRAFT
Open L0700-SI-TRANSPORT-AIRCRAFT
WASTE
Open L0700-SI-WASTE
WATER / SEWER
Open L0700-SI-WATER-SEWER

ALL THE PROCESSES
THE IMPACT OF ACTIVITIES / STREAMS / SECTORS

These are responsible for the amazing improvement in quality of life and standard of living over the past 200 years, and also responsible for the degradation of the environment. The efficiency of these are the key to a better world.
Open L0700-RE-PROCESSES

STREAMS / STRANDS / STRINGS
STREAMS / STRANDS / STRINGS REFLECT THE FLOWS THROUGH THE SOCIO-ENVIR0-ECONOMIC SYSTEM

LINKS BETWEEN PRODUCTION AND CONSUMPTION, DEPLETION OF NATURAL CAPITAL AND IMPROVEMENT IN HUMAN CAPITAL
Open L070-SS-STREAMS-STRANDS-STRINGS
ADVERTISING
ECOSYSTEM SERVICES
EDUCATION
ENERGY
Open L0700-SS-ENERGY
FOOD
Open L0700-SS-FOOD
INCOME
LABOR / JOBS / EMPLOYMENT
LAND
LIFESTYLE
Open L0700-SS-LIFESTYLE
MONEY
Open L0700-CFC-Money
TAXATION
Open L0700-SS-TAXATION
TOXINS
Open L0700-SS-TOXINS
WATER
Open L0700-SS-WATER


ALL THE PRODUCTS
THE IMPACT OF ACTIVITIES / STREAMS / SECTORS

PRODUCTS support a good quality of life and high standard of living, but PRODUCTS also POLLUTE and their production has an impact on the ENVIRONMENT, but the production also enables PROFIT and enables JOBS
GO TOP
NAVIGATION TO ALL PRODUCTS
Some unstructured general information about a lot of products ... background to establishing Standard Value Profiles
Open L0200-PRODUCTS
ABOUT THE ACCOUNTING FOR PRODUCTS
Conventional accounting has a long experience with cost accounting and financial reporting involving PRODUCT
Open L0700-CC-PRODUCTS
PRODUCT AS A REPORTING ENTITY
When PEOPLE know more about the PRODUCTS they buy and use, they are enabled to make better decisions
Open L0700-CC-PRODUCTS
THE STANDARD VALUE PROFILE FOR ALL PRODUCTS
A Standard Value Profile enables easy access to critical information about a PRODUCT
PRODUCT AS A PART OF CREATED PHYSICAL CAPITAL
There are huge stocks of PRODUCT ... relatively few shortages
Open L0700-CC-PRODUCTS


ALL THE ACTORS
THE ACTORS THAT MAKE THINGS HAPPEN / GET THINGS DONE

They are responsible for all the progress that has been achieved ... but also the damage that has been done that needs to be remediated
Open L070-ACTORS

REPORTING ENTITIES
REPORTING FOR ORGANIZATIONS, PEOPLE, PLACES, PROCESSES, PRODUCTS, STREAMS

Also PROJECTS, PROGRAMS and POLICIES
Open L070-RE-REPORTING-ENTITIES
ORGANIZATIONS
PURPOSE SHOULD BE MORE THAN JUST MAXIMIZING PROFIT
Open L0700-RE-ORGANIZATIONS
PEOPLE
THE MAIN PURPOSE OF EVERYTHING IS TO IMPROVE QUALITY OF LIFE FOR PEOPLE
Open L0700-RE-PEOPLE
PLACES
WHERE EVERYTHING COMES TOGETHER ... THE PEOPLE LIVE. ORGANIZATIONS PRODUCE AND POLLUTE
Open L0700-RE-PLACES
PROCESSES
WHERE AMAZING TECHNOLOGY SHOULD BE APPLIED FOR COMPREHENSIVE EFFICIENCY
Open L0700-RE-PROCESSES
PRODUCTS
PRODUCTS FLOW THROUGH THE SYSTEM, AND THROUGH USE DELIVER VALUE TO PEOPLE AND SOCIETY
Open L0700-RE-PRODUCTS
STRANDS
EVERYTHING HAS AN IMPACT ON EVERYTHING ELSE
Open L0700-RE-STRANDS
PROJECTS
Appropriate for activities that are time limited
Open L0700-RE-PROJECTS
PROGRAMS
Needed for program accountability
Open L0700-RE-PROGRAMS
POLICY
Needed for accountability with respect to policy
Open L0700-RE-POLICY

OTHER WAYS TO SEGMENT CAPITAL
OTHER REPRESENTATIONS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM
GO TOP

OTHER REPRESENTATIONS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM
There is no 'right' way to categorize or segment capital
The critical key concept is that ALL of capital is included in the analysis and management (decision making) for the system
The TVIA segments were chosen as they best reflect the state, flow and linkages of all the elements in the system.
Open L0700-SEES-other-representations

ALL THE CAPITALS
THE STATE OF EVERYTHING
Open L070-CAPITALS
EARTH SYSTEM
IMPACT OF HUMAN ACTIVITIES







'http://truevaluemetrics.org/DBpdfs/SEES/Coupling-Earth-and-Human-Systems-nww081.pdf'
Open PDF ... RED-StrategicPlan-2011

HOW THE SOCIO-ENVIRO-ECONOMIC SYSTEM WORKS
A VARIETY OF VIEWS / PERSPECTIVES

ALMOST NO MENTION OF THE IMPORTANCE OF GETTING THE METRICS RIGHT
GO TOP

-->
THE NEXT SYSTEM PROJECT ... TRANSFORMATIONS / SYSTEMIC CHALLENGES & SOLUTIONS IN 21ST CENTURY AMERICA
A NEW HEDONISM ...A Post-Consumerism Vision ... by KATE SOPER
Transformations-Post-Consumerism-2017
A 51 page paper

'http://truevaluemetrics.org/DBpdfs/Initiatives/TheNextSystemProject/Transformations-Post-Consumerism-2017.pdf'
Open PDF ... Transformation-Consumerism-2017
Jobs/ Unemployment / Income ... Basic Income
The Panama Papers prove it: America can afford a universal basic income ... If the super-rich actually paid what they owe in taxes, the US would have loads more money available for public services
Burgess COMMENTARY: I wish this was so ... but it is not. Universal basic income cannot be funded in a meaningful way by the economic / financial system as we know it. The experiments referred to in the article are very small both in terms of numbers of people and amounts being paid. However ... banks do have a version of universal basic income for themselves, and it is possible that such a system ... the fiat money system and the fractional reserve system ... could be replicated to work for society in much the same way that the finance system works for banks. Blockchain technology may be the foundation for such an innovation. Peter Burgess

Open file 14156



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.
SITE COUNT
Amazing and shiny stats
Blog Counters Reset to zero January 20, 2015

CAVEAT. 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.