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Date: 2024-05-14 Page is: DBtxt001.php txt00000051

TVM Concepts
Metrics

Financial performance of an organization is an inadequate metric.

I am quite single-minded about socio-economic development, and the role of many different initiatives in making for high performance progress. From my perspective, there is not much clarity about what should be measured and what constitutes progress and performance. This is, of course, a big subject, and I will mention just one thing at this time. Almost all the initiatives about performance metrics have a focus purely on the organization and the clients. This means that critical externalities are not taken into account, or taken into account inadequately. I argue that the focus should be on the community, and how an organization like an MFI facilitates improvement of quality of life in the community. My experience suggests that the performance of an organizational initiative is very much linked to many different sector elements, not to mention politics and personalities! Peter Burgess @truevaluemetric truevaluemetrics.org


Peter Burgess
April 2011
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