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Date: 2019-12-11 Page is: DBtxt001.php list0300-State-of-the-community-1

Definitions for TrueValueMetrics
State of the Community

The state of the community is a similar construct around value as the financial balance sheet of a corporate organization is around money denominated assets and liabilities. The community has many assets ... many asset classes ... and liabilities or constraints. In TVM a value is attributed to all these assets and a negative value attributed to the liabilities and constraints.

Assets. The asset classes include everything of value to the community ... tangible and intangible ... money denominated or not. People are valuable ... human capital if you will. Natural resources are valuable ... and their use and depletion is important and must not be ignored in the metrics. Knowledge is important ... as is organization, governance, security, spirituality and happiness. The TVM goal is for everything that contributes and makes up quality of life to be taken into account.

Liabilities. The liabilities of the community are those things that serve to detract from quality of life and from the productivity of the community. In endemically poor communities these liabilities are all pervasive. The lack of food security ... the lack of physical security ... the lack of productive land ... the lack of water ... the pollution of the environment ... the lack of health services ... the lack of schools

Progress. Change of state from time one to another time two is the primary metric for progress. Corporate progress (money profiot) is the net change between two balance sheets ... in TVM value accounting, progress is the net change between two states of the community.

Value change activities. Value change activities ... socio-economic activities ... are the economic activities that are going on in society. It is these activities that change the community state from state one to state two.

Value adding activities improve the state of the community and the quality of life ... value destruction activities produce a deterioration in the state of the community and quality of life.

It is possible to know whether there is progress or not merely by looking at the change of state of the community, but it is understanding the value change activities that makes it possible to understand how the community is performing and what might be done to improve performance.

Inclusive. TVM has the view that all economic aspects should be included in the TVM framework ... a stark contrast to some corporate accounting that has taken the view that some economic transactions should be kept off the balance sheet. Anything and everything that has an impact on quality of life, standard of living, pursuit of happiness, etc. should be taken into consideration. The TVM embrace of both value and money revenue is the core of TVM's approach. Value is included rather than being merely a sidebar as it is in modern corporate accountancy.



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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