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Date: 2021-03-05 Page is: DBtxt001.php L0700-TVM-SEES-Framing-the-System

TRUE VALUE METRICS
SOCIO-ENVIRO-ECONOMIC SYSTEM (SEES)
FRAMING THE SYSTEM

.
FRAMING THE SYSTEM TO ENABLE METRICS
FOR MEASURING PROGRESS AND PERFORMANCE
ORGANIZING THE ELEMENTS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM
.
Think of the Socio-Enviro-Economic system in terms of three segments: : a People piece, a People Built System piece, and a Nature piece.
These images were created around 2005.
The ideas are the same, the segment labels have been clarified and are now called Social Capital, Economic Capital and Natural Capital.
The first step is to separate FINANCIAL CAPITAL from the other parts of ECONOMIC CAPITAL
We should improve the representation by adding the Sun which is the ultimate source of all energy for planet earth.
And then reorder to put FINANCIAL CAPITAL at the top to reflect the way metrics about financial capital are at the center of all of conventional accounting, financial reporting and economic analysis.

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

Segments of the PEOPLE BUILT SYSTEM

ECONOMIC CAPITAL
The top segmentation of ECONOMIC CAPITAL as of 2018 is as follows:
(1) FINANCIAL CAPITAL
(2) PHYSICAL CAPITAL and
(3) INTANGIBLE CAPITAL

Financial Capital includes Money, Business Profit value and Capital Market value.
Physical Capital includes Buildings, Infrastructure, Industrial Plant, Vehicles and Working Capital.
Intangible Capital includes Knowledge Capital, Institutional / Organizational Capital and Cultural Capital.

ECONOMIC CAPITAL / FINANCIAL CAPITAL
Financial Capital is big part of Economic Capital. It is separated out because it dominates the conventional way performance is measured … that is:
(1) business profit;
(2) capital market valuations; and,
(3) GDP growth.

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

ECONOMIC CAPITAL / 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 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.



The text being discussed is available at

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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. 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


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