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Date: 2019-02-17 Page is: DBtxt001.php L0700-MA-MANAGEMENT

MANAGEMENT METRICS
Peter Drucker famously said you manage what you measure ... I say you had better measure the right things

TO DO ... update images to be more relevant to the subject matter
MONEY WEALTH / MONETIZED VALUE
Money / Profit growth / GDP growth / Stock Prices / Cost push inflation / Wages chasing prices

CORPORATE PROFITS
Systems to Manage Corporate Decisions to Achieve a Maximum of Corporate Profits are Powerful
Financial Reporting
Financial reporting
Cost Accounting, Management Information and Key Performance Indicators
Cost accounting is
Standard costing is a technique within cost accounting to get as much value as possible from the information in the most efficient way.
KPI or Ley Performance Indicators are a variety of measures
The best management information is [a TPB perspective] the least amount of data in the most timely way at a very low cost that enables decisions makers throughout an organization to make good decisions reliably all the time.

STOCK PRICES / INVESTMENT PORTFOLIO PERFORMANCE
Stock Markets play a very important role in the financing of private initiatives for progress ... but what is the progress we need?
Stock Price Indices
The 'Dow' passed the 20000 mark for the first time on February 17, 2017 ... but what does this really mean? It is a rather arcane computation based on the closing price of the shares of just 50 large cap industrial companies.
The S&P 500 is a broader index more typical of all of the market.
Portfolio design
Many portfolios have been designed to give the most return in the shortest possible time no matter what the consequences for society at large. This investor behavior is encouraged by the typical financial analysis that has rigorous data about financial performance and essentially no data about anything else. Companies that choose to do good while earning a return for investors tend to be penalized to the extent that doing good conflicts with making more profit.
Portfolios that are designed to build value over time and be sustainable doing right for society and the environment are penalized because of the dominance of the profit metric and the absence of rigorous sustainability metrics and the impact on society and the impact on the environment.

WORLD BANK and MANAGEMENT METRICS
The World Bank monitors national level metrics and 'project' performance related to its own funding. Not nearly enough!
The Annual World Development Report
A widely distributed report about the state of the world based on financial / economic performance at the country level.
Project Performance / Monitoring and Evaluation
The main focus of World Bank management is at the 'project' level. There is a quite rigorous 'project cycle' that starts off with project identification, and then is followed by project preparation, project appraisal, negotiation, disbursement, implementation and evaluation. The amount of analysis that is done during the identification, preparation and appraisal stages of the project cycle is huge relative to the amount of management oversight given during the disbursement and implementation stage. [TPB note: I participated in a number of supervision missions for the World Bank where many issues about project performance were identified with virtually no modality for getting any project shortcomings rectified.]
One of the key metrics for project performance at the World Bank is 'disbursement'. A project was considered successful when the disbursement of the loans was going according to plan with little or not consideration to the actual impact of the project within the beneficiary country. [TPB note: From personal experience, this resulted in all sorts of abuse at the country level, with neither the accounting nor any interest in sorting out the problems ... like corruption ... that were involved!]

UNITED NATIONS and MANAGEMENT METRICS
The United Nations does a lot of 'big picture' metrics ... but little about metrics suited to making better decisions
The Annual Human Development Report
A widely distributed report introduced in 1990 by UNDP about the state of the world based on a wide range of indicators of social and human progress at the country level. It was designed to complement that financial / economic focus of the World Bank reporting.
Development Cooperation Reports (DCRs)
In 1978 the United Nations mandated that UNDP should prepare an annual Development Cooperation Report for every member country about the development assistance being delivered to the country by the international community. These reports included information on all the projects being funded from international sources. Initially they were prepared manually, but in the 1980s they were prepared using early spreadsheet technology and then later using a PC based database system known as DCAS (Development Cooperation Analysis System). In theory, there was a detailed DCR each year for every country and by the end of the 1980s many of these reports were very informative showing a lot about how resources were being used. Early in the 1990s the UNDP stopped preparing these reports for reasons unknown. It is thought that some of the donor countries objected to the level of detail information that was becoming available which showed, inter alia, how much of the development assitance funding was being used for donor priorities rather than for beneficiary country priorities. [Note: TPB did a number of consulting assignments for UNDP to assist in the preparation of DCR reports, and used the DCR reports extensively as a foundation for a lot of development assistance analysis. Interestingly, many of the country level reports in detail based on country level information were impossible to correlate with information published by OECD based on data furnished by donor countries with little or no independent validation!].

UN MDGs - MILLENNIUM DEVELOPMENT GOALS

MDGs - MILLENNIUM DEVELOPMENT GOALS
The 8 Millennium Development Goals were launched by the United Nations in 2000 together with nnn indicators of progress. The MDGs were in effect for the period 2000 to 2015. There were 8 goals and the progress towards these goals was somewhat mixed. Depending on the required narrative and the reporting perspective, the goals were either a success or something of a failure. For more on this, see the link ...
Open L070-METRICS-MDGs

UN SDGs - SUSTAINABLE DEVELOPMENT GOALS

SDGs - SUSTAINABLE DEVELOPMENT GOALS
The 17 Sustainable Development Goals were launched by the United Nations in 2015 together with more than 120 indicators of progress as a replacement fore the NDGs. An important criticism of the SDGs is that they represent discontinuity from the MDGS to the SDGs and too much of an opportunity to lose much of the momentum that was in place for the MDGs. For more on this, see the link ...
More about SDGs
Open L0700-MG-SDGs

SDG-Compass-Guide-Executive-Summary
'http://truevaluemerics.org/DBpdfs/Management/SDG-Compass-Guide-Executive-Summary.pdf'
Open PDF ... SDG-Compass-Guide-Executive-Summary
SDG-Compass-Guide-2015
'http://truevaluemerics.org/DBpdfs/Management/SDG-SDG-Compass-Guide-2015.pdf'
Open PDF ... SDG-Compass-Guide-2015



The text being discussed is available at


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