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Meaningful Metrics for a Smart Society
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CONTEXT
ISSUES
POSSIBILITIES
HOW THE
WORLD
WORKS
ACTIVITIES
SECTORS
STREAMS
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
TRUE VALUE
DATA at
the CENTER
ABOUT
VISION
STRATEGY
Date: 2018-11-20 Page is: DBtxt001.php L070-TVM


TRUE VALUE METRICS
MULTI DIMENSION IMPACT ACCOUNTING
METRICS REALLY MATTER ... BUT THE METRICS MUST BE THE RIGHT ONES


InPage Navigation
The COMPLETE SOCIO-ENVIRO-EONOMIC SYSTEM
The COMPLETE SOCIO-ENVIRO-EONOMIC SYSTEM (SEES) GO InPage ALLofSEES

THE FOUNDATIONAL REASON FOR METRICS LIKE TVM
It is very important to have accountability in every aspect of the socio-enviro-economic system. Over the past 200 years there has been amazing progress in productivity within this system, but rather modest progress in designing and deploying an effective system of accountability.

It is very difficult to have meaningful accountability for a very big organization with many different activities. This may suit those that benefit from the profit performance of big organizations, like investors, senior executives (C-Suite) and senior staff, but this may not be good for society as a whole. This is a problem.

Inside the corporate organization there is impressive data collection and analysis. The data are used in summary form to report progress. The data are also used in a wide variety of disaggregated ways to understand specific issues about profit performance and to make decisions related to improvement. The same facts described by the data are presented in two ways: (1) most suited to reporting in a summary manner; and, (2) most suited to improving decision making for profit performance improvement.

In the better designed management systems the collection of the data actually results in almost immediate action to improve. In such a system the next time there is periodic summarization of reported performance, the perfomance has alreay improved.

(TPB note: Quite early in my career I was reassigned from being the CFO of manufacturing subsidiary to being the VP in charge of both Manufacturing and Finance. This made sense in so far as I did have some engineering background (a Cambridge engineering degree prior to my Chartered Accountancy qualification) but in reality it posed considerable risk. As it turned out I was able to use data to change the factory performance in an extremely short time. A daily production meeting that had been used for years and took place around 10am every day to discuss yesterday's production was replaced by an 8am meeting to discuss the upcoming day's production issues. By 9am most of the issues were being resolved by the maintenance team or others who needed to be engaged. Within weeks the production had more than doubled with almost no change in the costs of the factory.
The prevailing system of reporting does not deliver effective accountability. All of the reporting is self reporting with only quite weak validation of the reports. The information that is reported is quite limited compared to the data that now is available inside major organizations.

Interestingly, the TVM framing of data accumulation and analysis enables outside organizational behavior to be reported in a meaningful way from outside the organization so that there can be effective accountability for all the activities and actors in our massive and complex global socio-enviro-economic system.

Managing for ALL the
SOCIO-ENVIRO-ECONOMIC SYSTEM
Management Accounting designed to improve decision making where the priority is to improve quality of life for everyone and eliminate the unsustainability of a dangerously materialistic consumer economic system
Accounting that facilitates accountability
.

InPage Navigation / Site Navigation
The COMPLETE SOCIO-ENVIRO-EONOMIC SYSTEM
The COMPLETE SOCIO-ENVIRO-EONOMIC SYSTEM (SEES) Open L070-SEES-COMPLETE-SYSTEM
The SOCIO dimension of SEES Open L0700-SEES-SOCIO
The ENVIRO dimension of SEES Open L0700-SEES-ENVIRO
The ECONOMIC dimension of SEES Open L0700-SEES-ECONOMIC

ACTIVITIES GO InPage ACTIVITIES

MEASUREMENT MATTERS
Measure Change in State and you Measure Progress
No need for details about ACTIVITIES in order to measure PROGRESS. This is major simplification.
.
MEASURE PROGRESS FOR ALL THE CAPITALS
Economic Capital UP but Natural Capital DOWN
Consider these trends in SOCIO / ENVIRO / ECONOMIC STATE state over time
THE ACTUAL PAST PLUS a NO CHANGE FUTURE PLUS a BETTER FUTURE
SOCIAL CAPITAL and ECONOMIC CAPITAL have increased but NATURAL CAPITAL has been dangerously degraded. SOCIAL CAPITAL has been compromised by increasing inequality. Continuing in this way is an existential risk. There is a growing consensus that massive changes are essential, but most change initiatives are far too little and too slow. A better way is possible. This requires a system that enables prosperity without growth and every process improved so that production does less environmental damage
More and more DEPLETION and DEGRADATION of NATURAL CAPITAL is UNSUSTAINABLE
.


ALL the ACTORS GO TOP
About the ACTORS
Accounting to hold ACTORS accountable
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
PEOPLE as ACTORS
It is PEOPLE who make decisions and get benefits (or not)
Open L0700-PE-AC-PEOPLE-as-ACTORS
ORGANIZATIONS as ACTORS
ORGANIZATIONS probably account for more than 90% of all economic activity
Open L0700-OG-AC-ORGANIZATIONS-as-ACTORS
GOVERNMENTS as ACTORS
GOVERNMENTS have a role to play ... but how big that role is debated
Open L0700-GO-AC-GOVERNMENTS-as-ACTORS

ALL the ACTIVITIES GO TOP
About the ACTIVITIES
Accounting to hold ACTIVITIES accountable
Open L07-ACTIVITIES-SECTORS-STREAMS
About STREAMS / STRANDS / STRINGS
Accounting for ALL the IMPACTS of STREAMS, STRANDS, STRINGS
Open L070-SS-STREAMS-STRANDS-STRINGS
About SECTORS / INDUSTRIES
Accounting for the efficiency of SECTORS and INDUSTRIES
Open L070-SI-SECTORS-INDUSTRIES
About PROCESSES
Accounting to hold PROCESSES accountable
Open L070-PC-PROCESSES
About PRODUCTS
Accounting to hold PRODUCTS accountable
Open L070-PD-PRODUCTS
About PLACES
Accounting about the PLACE
Open L070-PL-PLACES
About GOVERNMENT
Who makes decisions and how they are made
Open L070-GO-GOVERNMENT

ALL the CAPITAL
For ALL the Socio-Enviro-Economic System
Social Capital Natural Capital Economic Capital
ALL the CAPITALS
Open L07-STATE-ALL-THE-CAPITALS
SOCIAL CAPITAL Open L0700-CS-SC-SOCIAL-CAPITAL
NATURAL CAPITAL Open L0700-CS-NC-NATURAL-CAPITAL
ECONOMIC CAPITAL Open L0700-CS-EC-ECONOMIC-CAPITAL
The Main Segments of Capital GO TOP
SOCIAL CAPITAL (SC) 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
More details for SOCIAL CAPITAL More InPage
.
NATURAL CAPITAL (NC)
Natural Capital Open L0700-CS-NC-NATURAL-CAPITAL
More details for NATURAL CAPITAL More InPage
.
ECONOMIC-CAPITAL (EC) Open L0700-CS-EC-ECONOMIC-CAPITAL
Financial Capital Open L0700-CS-EC-FC-FINANCIAL-CAPITAL
Physical Capital Open L0700-CS-EC-PC-PHYSICAL-CAPITAL
Intangible Capital Open L0700-CS-EC-IC-INTANGIBLE-CAPITALS
Knowledge Capital Open L0700-CS-EC-IC-Knowledge-Capital
Institutional Capital Open L0700-CS-EC-IC-Institutional-Capital
Cultural Capital Open L0700-CS-EC-IC-Cultural-Capital
More details for ECONOMIC CAPITAL More InPage

More Details for SOCIAL CAPITAL GO TOP
SOCIAL CAPITAL (SC) 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

More Details for NATURAL CAPITAL GO TOP
NATURAL CAPITAL (NC)
Natural Capital Open L0700-CS-NC-NATURAL-CAPITAL
Air Open L0700-CS-NC-A-AIR-ATMOSPHERE
Biodiversity Open L0700-CS-NC-B-BIODIVERSITY
Climate Open L0700-CS-NC-E-CLIMATE
Climate ... historic timeline Open L0700-CS-NC-E-CLIMATE-historic-timeline
Ecosystem Services Open L0700-CS-NC-E-ECOSYSTEM
Forest-Resources Open L0700-CS-NC-R-forest-resources
Fossil Fuels Open L0700-CS-NC-R-fossil-fuels
Greenhouse Gases (GHGs) Open L0700-CS-NC-E-GHGs
Land Open L0700-CS-NC-L-LAND
Land ... Ecoregions Open L0700-CS-NC-L-Ecoregions
Mineral Resources Open L0700-CS-NC-R-minerals
Sun Open L0700-CS-NC-SUN
Water Open L0700-CS-NC-W-WATER

DEPLETION Open L0700-CS-NC1-DEPLETION
DEGRADATION Open L0700-CS-NC2-DEGRADATION
Governance Open L0700-CS-NC-GOVERNANCE
Sustainability Open L0700-CS-NC-Sustainability
Waste Open L0700-CS-NC-WASTE
Australia Open L0700-CS-NC-Australia

More Details for ECONOMIC CAPITAL GO TOP
ECONOMIC CAPITAL (EC) Open L0700-CS-EC-ECONOMIC-CAPITAL
Financial Capital Open L0700-CS-FC-FINANCIAL-CAPITAL
Physical Capital Open L0700-CS-PC-PHYSICAL-CAPITAL
Knowledge Capital Open L0700-CS-KC-KNOWLEDGE-CAPITAL
Institutional Capital Open L0700-CS-IC-INSTITUTIONAL-CAPITAL
Cultural Capital Open L0700-CS-CC-CULTURAL-CAPITAL

Navigation GO TOP
CORE CONCEPTS
Open L0700-TVM-CC-CORE-CONCEPTS
TVM-accounting-for-past-present-future
Open L0700-TVM-accounting-for-past-present-future
TVM-ACTIVITY-CHANGE-IN-STATE
Open L0700-TVM-ACTIVITY-CHANGE-IN-STATE
.
Peter Burgess point of view circa 2003
c2003-Community-Development
Open L0700-TPB-c2003-Community-Development
c2003-Community-Complexity
Open L0700-TPB-c2003-Community-Complexity
c2003-Data-Flows-Analysis
Open L0700-TPB-c2003-Data-Flows-Analysis
c2003-Data-at-the-Center
Open L0700-TPB-c2003-Data-at-the-Center
c2003-Failing Development
Open L0700-TPB-c2003-Failing-Development
c2003-Relief-Development-(ORDA) Fund-Flows
Open L0700-TPB-c2003-ORDA-Fund-Flows
c2003-Process-Changing-State
Open L0700-TPB-c2003-Process-Changing-State
c2003-Process-Changing-State
Open L0700-TPB-c2003-Process-Changing-State-2
c2003-Process-Changing-State Open L0700-TPB-c2003-Process-Changing-State
c2003-zzzz ... unsorted / redundant material Open L0700-TPB-c2003-zzzz
.
Community Centric Sustainable Development
Open L0700-TVM-CCSD-elements-from-the-1990s
.
TVM-and-Integrated-Reporting
Open L0700-TVM-and-IR
TVM-and-TEST
Open L0700-TVM-and-TEST
TVM-and-UN-SDGs
Open L0700-TVM-and-UN-SDGs
TVM-and-UN-SDGs-02
Open L0700-TVM-and-UN-SDGs-02
.
TVM-about-CAPITALS-01
Open L0700-TVM-about-CAPITALS-01
TVM-about-CAPITALS-01
Open L0700-TVM-about-CAPITALS-02
L0700-MM-V-changes-over-time
Open L0700-MM-V-changes-over-time
.
.
TVM-for-GOVERNMENTS
Open L0700-TVM-for-GOVERNMENTS
TVM-for-NGO-ACCOUNTING
Open L0700-TVM-for-NGO-ACCOUNTING
TVM-for-NGOs
Open L0700-TVM-for-NGOs
TVM-for-PLACES
Open L0700-TVM-for-PLACES
TVM-for-SMEs
Open L0700-TVM-for-SMEs
TVM-for-SUPPLY CHAIN
Open L0700-TVM-for-SUPPLY-CHAIN
TVM-for-SUPPLY-CHAIN-2
Open L0700-TVM-for-SUPPLY-CHAIN-2
.
TVM comparison with conventional financial accounting
Open L0700-TVM-comparison-with-CFA
TVM-DATA-SOURCING
Open L0700-TVM-DATA-SOURCING
DEFINITIONS
HELPING TO UNDERSTAND WHAT EVERYTHING MEANS
Open L0700-TVM-Definitions
How Double Entry Accounting Works
Open L0700-TVM-how-double-entry-works
TVM-IMPACT-ACCOUNTING
Open L0700-TVM-IMPACT-ACCOUNTING
TVM-measuring-progress
Open L0700-TVM-measuring-progress
Example of production flow
Open L0700-TVM-example-of-production-flow
TVM-MNGT-ACCOUNTING
Open L0700-TVM-MNGT-ACCOUNTING
TVM-TBL-3P-ALL-the-CAPITALS
Open L0700-TVM-TBL-3P-ALL-the-CAPITALS
TVM-VALUE-ACCOUNTING
Open L0700-TVM-VALUE-ACCOUNTING
Units of Account Open L0700-TVM-UA-UNITS-OF-ACCOUNT
Standard Value Profiles for PRODUCTS Open L0700-TVM-SV-STANDARD-VALUE-PROFILES
True Value Coin System Open L0700-TVM-TVC-TRUE-VALUE-COIN
Webpage archive
ndx001 / HOW ACCOUNTING WORKS Open L0700-TVM-ndx001
ndx002 / COMPLEX WORLD - HOW TO MAKE IT WORK Open L0700-TVM-ndx002
TVM for ALL the CAPITALS Open L0700-TVM-for-ALL-the-CAPITALS
ndx003 / ALTERNATIVE NAVIGATION ... CONTEXT / SYSTEM / METRICS / TEAM Open L0700-TVM-ndx003
ndx004 / ALTERNATIVE NAVIGATION ... Text Open L0700-TVM-ndx004
ndx005 / Navigation menu archive Open L0700-TVM-ndx005
ndx006 / COMPLEX WORLD ... HOW TO MAKE IT BETTER Open L0700-TVM-ndx006



The text being discussed is available at


TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative.
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