image missingTrue Value Metrics (TVM)
Meaningful Metrics for a Smart Society
image missing Navigation ... HOME
HOME BRIEF PROBLEMS
POSSIBILITIES
SYSTEM
OVERVIEW
PROGRESS
PERFORMANCE
STATE
CAPITALS
FLOW
ACTIVITIES
FLOW
ACTORS
EFFECTIVE
MANAGEMENT
PETER
BURGESS
SiteNav SitNav (1) SitNav (2) SitNav (3) SitNav (4) SitNav (5) SitNav (6) SitNav (7) SitNav (8)
Date: 2019-09-15 Page is: DBtxt001.php L0700-MM-ABOUT-CAPITALS

METRICS for MANAGEMENT
ABOUT CAPITALS
Many approaches ... underlying ideas not so very different


THE SEGMENTATION OF CAPITAL
There is no 'right' way to categorize or segment capital.
The critical key concept is that ALL of capital is included.

An 8 segment breakdown
The framing described
1 ... ... Individual
2 ... ... Intellectual
3 ... ... Social
4 ... ... Cultural
5 ... ... Natural Capital
6 ... ... Financial
7 ... ... Built
8 ... ... Political
The top TVM segments are:

Social Capital (comprising Human, Relational and Locational)
Natural Capital
Economic Capital
... Financial Capital
... Physical Capital
... Intangible Capital (comprising Knowledge, Institutional, Cultural, etc. )
So this maps as follows:

Social Capital (comprising Human, Relational and Locational)
... ... Individual
... ... Intellectual

... ... Social
... ... Cultural

Natural Capital
... ... Natural Capital
Economic Capital
... Financial Capital
... ... Financial
... Physical Capital
... ... Built
... Intangible Capital (comprising Knowledge, Institutional, Cultural, etc. )
... ... Political
... ... Intellectual

... ... Cultural

Segmenting the Capitals ... Forum for the Future

365 272
This has some similarity with the TVM framing. There are 3 main segments as in the TVM framing as there are with this. With TVM Social Capital is subdivided into Human Capital. Relational Capital and Locational Capital. With TVM, Economic Capital is subdivided into Financial Capital, Physical Capital and Intangible Capitals. The Intangible Capital is missing from this diagram.
For TVM accounting and analysis about 30 subdivisions of the capitals are used.
'http://truevaluemetrics.org/DBpdfs/Metrics/Forum-for-the-Future/Forum-for-the-Future-five-capitals-model.pdf' Open PDF ... Forum-for-the-Future-five-capitals-model

SAP perspective of segmentation
There is a growing recognition that performance must embrace not only the profit dimension, but should comprise social, economic and environmental. This SAP image shows this, but it also highlights the continuing concept that the corporate business is at the center of this universe. TVM frames the system with people and society at the center of the system with Natural Capital and Economic Capital supporting, enabling, improving and sustaining Social Capital.

KPMG view of Socio-Enviro-Economic System
TPB observation: KPMG is one of the world's largest accountancy firms ... yet this presentation is devoid and any meaningful connection to the core concepts that make accountancy so powerful, and deserving to be at the center of almost every major management information system in the corporate world anywhere on the planet. As I see, it, the accountancy profession is missing a huge opportunity to expand its role in management information by enhancing accountancy to embrace not only financial transactions but all the transactions that impact all the capitals. This is why TVM has the potential to be powerful and a gamechanger.



Figure 4 from this report:
'http://truevaluemetrics.org/DBpdfs/ImpactAccounting/KPMG-A-New-Vision-of-Value-2014.pdf'
Open PDF ... KPMG-A-New-Vision-of-Value-2014.pdf

'http://truevaluemetrics.org/DBpdfs/ImpactAccounting/KPMG-A-New-Vision-of-Value-2014.pdf'
Open PDF ... KPMG-A-New-Vision-of-Value-2014.pdf


... Urbanization
... Population Growth
... Wealth
... Food Security
... Ecosystem Decline
... Deforestation
... Climate Change / CO2
... Energy and Fuel
... Material Resource Scarcity
... Water Scarcity




The text being discussed is available at

SITE COUNT
Amazing and shiny stats
Blog Counters Reset to zero January 20, 2015
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. TVM is a 'big idea' that has the potential to be a game changer leveling the playing field so the wealth and power is shared on a more reasonable basis between people who work for a living and those that own the economy and the levers of power. In order to be effective, it cannot be funded in the conventional way with a for profit business plan, but absolutely must remain an open access initiative.
WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WILL HELP MAKE THAT HAPPEN


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.