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Meaningful Metrics for a Smart Society
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Date: 2018-09-20 Page is: DBtxt001.php L070-TVM


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


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 performance of big organizations, 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 of performance and to make decisions related to performance improvement. The same facts are described by the datra in ways most suited to reporting and most suited to operational performance improving decision making.
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 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.
Inter alia, TVM enables outside observers of organizational behavior to supply meaningful that can be used to build effec tive accountability for all the actors in our complex global socio-enviro-economic system.

Accounting 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
.
MEASUREMENT MATTERS
Measure Change in State and you Measure Progress
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 CAPITAL
Social Capital
Natural Capital
Economic Capital

The COMPLETE SOCIO-ENVIRO-EONOMIC SYSTEM
The COMPLETE SOCIO-ENVIRO-EONOMIC SYSTEM (SEES) Open L070-SEES-COMPLETE-SYSTEM
The SOCIO dimension of SEES Open L070-SEES-SOCIO
The ENVIRO dimension of SEES Open L070-SEES-ENVIRO
The ECONOMIC dimension of SEES Open L070-SEES-ECONOMIC

ALL the ACTORS and ACTIVITIES GO TOP
About the ACTORS
Accounting to hold ACTORS accountable
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
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-PLACE-PLACES
About GOVERNANCE / MANAGEMEMT
Who makes decisions and how they are made
Open L070-GM-GOVERNANCE-MANAGEMENT

ALL the CAPITALS
ALL the CAPITALS the SOCIO-ENVIRO-ECONOMIC SYSTEM
Open L070-CS-CAPITALS-STATE

SOCIO / SOCIAL CAPITAL
SOCIAL CAPITAL Open L070-CS-SC-SOCIAL-CAPITAL
ENVIRO / NATURAL CAPITAL
NATURAL CAPITAL Open L070-CS-NC-NATURAL-CAPITAL
ECONOMIC CAPITAL
ECONOMIC CAPITAL Open L070-CS-EC-ECONOMIC-CAPITAL

The main segments of capital GO TOP
SOCIAL CAPITAL (SC)
SOCIAL CAPITAL Open L070-CS-SC-SOCIAL-CAPITAL
(1) Human Capital Open L0700-CS-HC-HUMAN-CAPITAL
(2) Relationship Capital Open L0700-CS-RC-RELATIONSHIP-CAPITAL
More SOCIAL CAPITAL disaggregation More InPage
NATURAL CAPITAL (NC)
NATURAL CAPITAL
(3) Natural Capital Open L070-CS-NC-NATURAL-CAPITAL
More NATURAL CAPITAL disaggregation More InPage
ECONOMIC-CAPITAL (EC)
ECONOMIC CAPITAL Open L070-CS-EC-ECONOMIC-CAPITAL
(4) Physical Capital Open L0700-CS-PC-PHYSICAL-CAPITAL
(5) Financial Capital Open L0700-CS-FC-FINANCIAL-CAPITAL
(6) Knowledge Capital Open L0700-CS-KC-KNOWLEDGE-CAPITAL
(7) Institutional Capital Open L0700-CS-IC-INSTITUTIONAL-CAPITAL
(8) Cultural Capital Open L0700-CS-CC-CULTURAL-CAPITAL
(9) Locational Capital Open L0700-CS-LC-LOCATIONAL-CAPITAL
More ECONOMIC CAPITAL disaggregation More InPage

More SOCIAL CAPITAL disaggregation GO TOP

SOCIAL CAPITAL (SC) Open L070-CS-SC-SOCIAL-CAPITAL
(1) Human Capital Open L0700-CS-SC-HC-HUMAN-CAPITAL
(2) Relationship Capital Open L0700-CS-SC-RC-RELATIONSHIP-CAPITAL

More NATURAL CAPITAL disaggregation GO TOP

NATURAL CAPITAL (NC) Open L070-CS-NC-NATURAL-CAPITAL
(3) Natural Capital Open L070-CS-NC-NATURAL-CAPITAL
Air Open L0700-CS-NC-AIR
Biodiversity Open L0700-CS-NC-BIODIVERSITY
Climate Open L0700-CS-NC-CLIMATE
Climate ... historic timeline Open L0700-CS-NC-CLIMATE-historic-timeline
Ecosystem Services Open L0700-CS-NC-ECOSYSTEM-SERVICES
Forest-Resources Open L0700-CS-NC-FOREST-RESOURCES
Fossil Fuels Open L0700-CS-NC-FOSSIL-FUELS
Greenhouse Gases (GHGs) Open L0700-CS-NC-GHGs
Land Open L0700-CS-NC-LAND
Land ... Ecoregions Open L0700-CS-NC-LAND-Ecoregions
Mineral Resources Open L0700-CS-NC-MINERAL-RESOURCES
Sun Open L0700-CS-NC-SUN
Water Open L0700-CS-NC-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 ECONOMIC CAPITAL disaggregation GO TOP
ECONOMIC CAPITAL (EC) Open L070-CS-EC-ECONOMIC-CAPITAL
(4) Physical Capital Open L0700-CS-PC-PHYSICAL-CAPITAL
(5) Financial Capital Open L0700-CS-FC-FINANCIAL-CAPITAL
(6) Knowledge Capital Open L0700-CS-KC-KNOWLEDGE-CAPITAL
(7) Institutional Capital Open L0700-CS-IC-INSTITUTIONAL-CAPITAL
(8) Cultural Capital Open L0700-CS-CC-CULTURAL-CAPITAL
(9) Locational Capital Open L0700-CS-LC-LOCATIONAL-CAPITAL

Elements of TVM / Core Concepts GO TOP
CORE CONCEPTS
TVM uses core concepts from conventonal accounting and scientific analysis
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
TVM-ALL-IMPACT-ACCOUNTING
Open L0700-TVM-ALL-IMPACT-ACCOUNTING
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-COMPANIES
Open L0700-TVM-COMPANIES
TVM comparison with conventional financial accounting (CFA)
Open L0700-TVM-comparison-with-CFA
TVM-DATA-SOURCING
Open L0700-TVM-DATA-SOURCING
TVM-GOVERNMENTS
Open L0700-TVM-GOVERNMENTS
How Double Entry Accounting Works
Meaningful metrics needs to have clarity between STATE and FLOWS
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-NGO-ACCOUNTING
Open L0700-TVM-NGO-ACCOUNTING
TVM-NGOs
Open L0700-TVM-NGOs
TVM-PLACES
Open L0700-TVM-PLACES
TVM-TBL-3P-ALL-the-CAPITALS
Open L0700-TVM-TBL-3P-ALL-the-CAPITALS
TVM-SMEs
Open L0700-TVM-SMEs
TVM-SUPPLY-CHAIN
Open L0700-TVM-SUPPLY-CHAIN
TVM-VALUE-ACCOUNTING
Open L0700-TVM-VALUE-ACCOUNTING

Units of Account GO TOP
Units of Account
Measurements have to be more than mere monetization using markets
Open L0700-TVM-UA-UNITS-OF-ACCOUNT

Standard Value Profiles for PRODUCTS GO TOP
Standard Value Profiles for PRODUCTS
Measurements have to be more than mere monetization using markets
Open L0700-TVM-SV-STANDARD-VALUE-PROFILES

True Value Coin System GO TOP
True Value Coin System
Doing for Society and the Environment what conventional money does for the Economy
Open L070-TVC-TRUE-VALUE-COIN
.
PEOPLE ... m
as ACTORS
ORGANIZATIONS
as ACTORS ... m
ROLE of
PLACE ... m
ALL the
PERSPECTIVES
TOOLS and ... m METHODS METRICS ... m
Accountability
Individual ... more
Family ... more
Community ... more
Employee ... more
Employer ... more
Investor ... more
Customer ... more
Director ... more
Governments ... m
Multinationals ... m
Companies ... m
SMEs ... more
Banks ... more
NGOs ... more
Portfolio ... more
Building ... more
Neighborhood ... m
City ... more
Metro-area ... more
Suburb ... more
Rural Town ... more
Development ... m
STREAMS ... more
PRODUCTS ... more
PROCESSES ... more
SECTORS ... more
PLACES ... more
MARKETS ... more
Productivity ... more
Exchange ... more
Money/Liquidity ... more
Standard Values ... m
Value Tokens ... more
Basic Income ... more
Money Metrics
Economy / GDP ... more
for Investors ... more
for Companies ... more
True Value
Impact Acctg

TVIA ... more



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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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