Definitions for TrueValueMetrics
What? ... What is TVM?
What is TVM:
The corporate accounting ideas of balance sheet and operating statement are applied to a place, to an economic activity and the community as a whole, and not just the organization so that there may be reports to investors.
- TVM is a system of metrics that goes beyond corporate accountancy and macro-economics.
- TVM makes economic activity the basis for analysis with both community and organizations as reporting entities
- TVM is value based ... and uses not only the metrics of money (profit) but also metrics of social value (people) and environmental value (planet).
- TVM measures not only profit of an economic activity, but also the valuadd ... the impact on society and the environment.
TVM has two roles. TVM has two roles: (1) score-keeping; and, (2) data for management information that facilitates improved performance. TVM is a structured system of data collection and analysis to enable a paradigm shift in the way socio-economic performance is measured. TVM is score-keeping for the game is life ... and the pursuit of happiness ... and the playing field is the community.
But TVM is only score-keeping and statistics ... and is neutral. It is not a rule making authority like the National Basketball Association. It is not a referee that ensures the game is played by the rules. It is not a coach that gets the team ready for a game and calls the plays. It is not a player. It is not a spectator merely getting entertainment. It is not an owner that benefits from the outcome of the game ... or a gambler trying to profit from a wager on the outcome of the game. TVM is independent and its score-keeping and data are to be trusted. Score-keeping is more than determining the game winner ... there are also a whole range of performance statistics.
Examples of scoring systems
TVM score-keeping and statistics builds on many of the concepts already developed for corporate accountancy and management information and for economic indicators. Accountancy has great power when used well to organize data for financial and operational analysis ... and with TVM the reporting entity becomes the community and not the organization and the critical key stakeholder are the residents of a community rather than the stockholders and management of an organization. TVM aims to have no opinion ... its goal is merely to collect data and analyze data so that better decisions can be made about the use of resources for socio-economic progress.
- Golf: The number of strokes used for the round. Lowest number wins.
- Cricket: Number of runs. Largest number of runs wins.
- Tennis: Numbers of winning points wins a game. Most games won wins a set. Most sets won wins a match. Most matches won wins a tournament.
- Baseball: Number of runs. Largest number of runs wins. The system of runs is quite complicated, but simplifies to number of runs to determine the winner.
- Soccer: Number of goals scored.
- American football: Number of points scored ... with points assigned for different actions: touchdowns, conversions, field goals, etc.
Sporting analogy. TVM is score-keeping. It is not the rule making authority like the National Basketball Association. It is not a referee that ensures the game is played by the rules. It is not a coach that gets the team ready for a game and calls the plays. It is not a player. It is not a spectator merely getting entertainment. It is not an owner that benefits from the outcome of the game ... or a gambler trying to profit from a wager on the outcome of the game. TVM is independent and its score-keeping is to be trusted.
TVM, however, does more than just keep score. TVM also handles statistics. With the TVM data and analysis it becomes possible for everyone to know a lot more about socio-economic performance than would be the case without. In sport, the score determines which team wins, but the statistics of the game show which players contributed the most to the result.
TVM is grounded in some very old basic concepts of accountancy and measurement ... but also embraces 21st century technical possibilities. In simple ... perhaps simplistic ... terms, TVM is like Facebook except that the central focus is a physical community rather than “me”. With TVM, the connections are not “my” friends and interests, but the people, organizations and issues that influence or impact the socio-economic performance of the community. TVM is structured so that the data about a community is organized in useful ways, rather like the way corporate accounting information is organized into accounts and different datasets that make it easy to understand corporate performance. TVM uses some of constructs that make corporate accountancy powerful ... but does not limit itself to just money transactions, but also embraces activities and initiatives that affect socio-economic well-being.