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Date: 2019-09-17 Page is: DBtxt001.php list0300-Rollup-1

Definitions for TrueValueMetrics
Roll Up

The performance of an economic activity has an impact for:

  • The implementing organization
  • The place where the economic activity is located
Implementing organization. In the prevailing money profit organization and its accounting system, there is accounting for all the economic activities of the organization and these aggregate to the organization as a whole. The consolidated performance is what gets reported to top management and the shareholders.

In this process of aggregation, it is the organization that controls. The result is a reporting outcome that is of interest to investors, but of little utility to analysts of community performance.

Typical corporate consolidations are only about the money profit accounting, and not about the associated TVM style value accounting. Under a TVM value accounting regime the organizational roll up would report not only on money profit but also on the valuadd.

Place. Economic activity, even when it is implemented by an organization, takes place in a place. Community is a place ... and all economic activities of the place “add up” or 'roll up' to the community.

In turn, the community performance can roll up to a higher level that may be a district, or a state, or a country.

In this perspective of community there is no spatial overlap. Within a community there may also be neighborhoods ... and within neighborhoods also blocks.

A community is going to be most concerned with the valueadd more than the money profit ... but the same valuadd should be rolled up for both the community and the organizaiton.

Affinity Group. An affinity group may also be considered a community. An affinity group has more of the characteristics of an organization than a place, and the roll-up should be designed accordingly. A note of caution therefore ... the “roll-up” or aggregation of affinity groups is complex and should be done carefully and not used in aggregatomg for national or global aggregate.

Drill down. The antithesis of roll-up is drill down. With drill down it becomes possible to understand the components that make up any situation ... drill down gives the subsidiary data that aggregates to the summary. (See Drill Down for more)



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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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