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Date: 2019-09-18 Page is: DBtxt001.php L0700-TVM-for-SUPPLY-CHAIN-2

TRUE VALUE METRICS
SUPPLY CHAIN ACCOUNTING
SUPPLY CHAIN USUALLY BIGGER THAN FINAL ASSEMBLY AND SALES


PROGRESS is the increase in VALUE (of the STATE) from beginning to end of the period
Simply measure the change in the VALUE or everything

Accounting for the money transactons through the supply chain
Accounting for money transactons AND social impact AND environmental impact

NEW SECTION
Sub heading
The next slide shows …

… how the money P&L report describes the impact of the money transactions on the money balance sheet of the operation …

… while the IMPACTS of the operations on society and the environment are ignored because they are outside the reporting envelope.
A better framework for reporting would be this …
So think of all this miniaturized:

HOW PRODUCT AND PROCESS IMPACT EVERYTHING
A way to account for externalities
So think of all this miniaturized:

SOME EXAMPLES OF MAJOR PROCESSES USES IN DIFFERENT SECTORS
Sub heading
… and specifically this mean making all the PROCESSES that are used to support our QUALITY OF LIFE more efficient not only to make more PROFIT but also to have a BETTER IMPACT on SOCIETY (PEOPLE) and ENVIRONMENT (PLANET).
For example … in AGRICULTURE ...
better stewardship of WATER use;
… attention to pollution from run-off containing fertilizers, herbicides, pesticides, etc;
… more responsible use of animal medication to avoid risk of drug resistance important for human health;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
For example … TRANSPORTATION ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… and a whole lot more.
For example … OFFICE BUILDINGS ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… and a whole lot more.
For example … HEAVY INDUSTRY ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
For example … MINING ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… degradation of the land;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
For example … CONSTRUCTION ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.

SOME CONCLUDING OBSERVATIONS
Sub heading
CONCLUDING OBSERVATION ...
… more than anything else improving the EFFICIENCY of PROCESS will change the trajectory of global socio-enviro-economic performance;
… in the past efficiency has simply been about less COSTS and more PROFIT;
… in the future EFFICIENCY has to be about better QUALITY OF LIFE for PEOPLE with very little of no damage to the ENIRONMENT (PLANET)

INTEGRATED FINANCIAL AND IMPACT ACCOUNTING ...
… integration of financial and impact accounting will make it possible for very much better decisions to be made.
… high efficiency can be rewarded and there can be social accountability for bad practices and low efficiency.

CHIEF PERFORMANCE OFFICER
Maybe in the near future it will be possible to rename the CFO (Chief Financial Officer) to be the CPO … the Chief Performance Officer, a C-level position that integrates financial performancewith impact on society (people) and impact on the environment (planet).


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.
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