Why TrueValueMetrics?
For almost 20 years I was a successful corporate management accountant and a CFO very interested in corporate performance. In this role I learned how important it was to have the right incentives in the company so that everyone was pushing towards the same corporate goal. My work on this helped the companies I worked for improve profit performance substantially. In 1978 I started a small international management consultancy firm that applied management accounting inside major business organizations and tried ... rather unsuccessfully ... to bring accountability and performance metrics into the public sector at home and abroad.
TrueValueMetrics is an initiative of Tr-Ac-Net Inc., a company I formed in 2003 to continue the activities of my consulting firm. Tr-Ac-Net was short for Transparency and Accountability Network, an initiative that was seeking to enable better accounting in both private business and public sector organizations. TrueValueMetrics has now emerged as the core activity of the company because of the vital importance of measuring what matters, and specifically measuring not only money profit, investor value and GDP growth but also all the other factors that go into making for a better quality of life for the people who are employees, suppliers, customers, family members and the community at large, and also all the factors that go into a sustainable environment. TrueValueMetrics is value accountancy where both money profit and valuadd are measured and reported together.
What is TrueValueMetrics?
TrueValueMetrics is an essential component of the emerging social business asset class. A social business may not have fast growing profits and a high capital market valuation, but this can be made up by fast growing social valuadd and a high valuation on the emerging social business exchanges.
Money profit accounting is ubiquitous. Every organization uses a similar construct of revenues and costs to determine money performance ... profit. Money profit accounting ignores important impacts on stakeholders other than the investor. Other economic measures like GDP also ignore much of social and economic activity that is critical to quality of life. TrueValueMetrics is accounting that incorporates value into the basic money accounting construct.
How does TVM quantify value?
People say value depends on too many factors to be quantified. In TVM, the diversity of opinion about value becomes a strength, not a weakness. In a free society my 'values' may be different from yours, and we should be free to optimize our own values. But surprisingly, even in quite different cultures and societies there are many important values that are central to quality of life. In TVM there are both the individual value profiles and also a range of 'standard profiles' which serve as benchmarks.
TVM addresses many issues
As a starting point, TVM assumes that there are hundreds of problems, not one single big problem ... or to put it another way, there are hunndreds of ways in which improvements to the outcomes may be achieved. Reform therefore must be inclusive of everything ... in practical terms this embraces 'a lot'.
Webpage Archive
The ideas that are incorporated in TrueValueMetrics have evolved over time. The webpage archive is a record of how some of the ideas have matured over time ... some have died altogether or morphed in ways that makes them almost unrecognizable in their current form.
Go to Webpage Archive
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TVM Dialog
The TVM dialog is background to the problem and a demonstration of how much dialot or conversation there has been about important matters. From a practical management standpoint, the problem is that the ideas get no traction because the system of measurement is wrong and therefore the incentives are pushing in the wrong direction.
Dialog
Navigation through the dialog using:
SEGMENTS
Navigation using segments allows switching to different parts of the information according to the type of resource being used.
DIALOG ISSUES
There are many issues ... not one single silver bullet ... there are hundreds of separate issues
CHRONOLOGICAL
The numerical sequence is roughly chronological ... this is most recent posting first
Definitions
These are the basic definitions that provide the structure and framework for TVM
Basic Concepts
These are the basic concepts that went into formulating TVM
Authors
Few ideas are original ... these are excerpts from many people writing about issues and ideas.
Countries
Many issues cross national boundaries, but each country is also unique in very many different ways.
Snippets
Burgess TVM Snippets ... big print short notes about TVM
Webpage archive
Some of the webpages that have been used in the past to describe TVM and its precursor initiatives
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