image missingTrue Value Metrics (TVM)
Meaningful Metrics for a Smart Society
image missing Navigation ... HOME
HOME
CONTEXT
ISSUES
POSSIBILITIES
HOW THE
WORLD
WORKS
SECTOR
PROCESS
IMPACT
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
TRUEVALUE
DATA at
the CENTER
ABOUT
VISION
STRATEGY
Date: 2019-03-23 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


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.
SITE COUNT
Amazing and shiny stats
Blog Counters Reset to zero January 20, 2015

CAVEAT. 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.