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Meaningful Metrics for a Smart Society
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Date: 2019-07-16 Page is: DBtxt001.php list0300-Activity-1

Definitions for TrueValueMetrics
Activity

Activity ... an activity ... is at the center of everything.

Activity ... an activity ... is at the center of everything.

The purpose of an activity is to achieve something that either I need, we need as a family, or we need as a community or society.

The effectiveness or efficiency of an activity is the relationship between what gets used or consumed in the activity and what comes out in the form of a needed good or service.

The economic activity is at the center of the TrueValueMetrics (TVM) valuadd accounting system framework. The progress and performance of society is a result of the sum of all economic activity, including both the money profit activities carried out by business organizations, and all other production and service activity for goods and services needed in the society.

The progress and performance of a business organization is the sum or consolidation of all its economic activities. TVM aggregates both the money profit transactions and the value flow transactions, reporting on both.

The progress and performance of a community, or the larger society is the sum of all economic activities in the community or in the larger society.

While TVM is concerned with the effectiveness and efficiency of economic activity, the system measures progress and performance using the concept of change in state. The change in state using the basic double entry accounting construct invented more than 400 years ago is a simpler way to measure impact than to try to sum all the economic activities. The detail associated with summarizing a very large number of transaction results in data overload and confusion. A more reliable measure can be obtained by merely looking at how the 'state' ... the balance sheet has changed.



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.
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