image missing Date: 2021-10-26 Page is: DBtxt003.php L0700-TVM-measuring-P-and-P



SOCIO-ENVIRO-ECONOMIC SYSTEM (SEES)
MEASURING PROGRESS AND PERFORMANCE

SETTING UP FOR
MEASURING PROGRESS AND PERFORMANCE

ORGANIZING THE ELEMENTS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM
GO TOP
If we think of the Socio-Enviro-Economic system in this way: a People piece, and People Built System piece, and a Nature piece ...
The first step is to separate FINANCIAL CAPITAL from the other parts of PEOPLE BUILT SYSTEMS.
We can improve the representation by adding the Sun which is the ultimate source of all energy for planet earth.
And then reorder to put FINANCIAL CAPITAL at the top to reflect the way metrics about financial capital are at the center of conventional accounting, financial reporting and economic analysis.

Elements of the System by Segment (I)
Elements of the System by Segment (II)

Segments of the PEOPLE BUILT SYSTEM

PEOPLE BUILT SYSTEM ...

PEOPLE BUILT SYSTEM ... FINANCIAL CAPITAL
Financial Capital is part of Man Built Capital but separated out for the purpose of analysis because it has become such an important part of the conventional way of measuring … specifically:
(1) business profit;
(2) capital market valuations; and,
(3) GDP growth.

PEOPLE BUILT SYSTEM ... INTANGIBLE CAPITAL ... Institutional Capital

PEOPLE BUILT SYSTEM ... INTANGIBLE CAPITAL ... Knowledge Capital
Knowledge Capital ... What we know enables productivity and performance. ... Some of this is shared universally and is available for free use, and some is owned by Individuals and Business entities and may be used for their private gain at the expense of society as a whole.
Knowledge Capital ... Knowledge Capital is expanding rapidly … faster than at any previous time in history. ... Important parts of Knowledge Capital have been created with Government funds, often for military and security purposes.

THE SEGMENTATION OF CAPITAL
There is no 'right' way to categorize or segment capital ... the critical key concept is that ALL of capital is included in the analysis and management (decision making) for the system
The TVA segments were chosen as they seem to reflect the state and flow of all the elements in the socio-enviro-econmic system.
An 8 segment breakdown
1 ... ... Individual
2 ... ... Intellectual
3 ... ... Social
4 ... ... Cultural
5 ... ... Natural Capital
6 ... ... Financial
7 ... ... Built
8 ... ... Political
The top TVM segments are:
People / Human Capital
Natural Capital
People Built Systems and Structures (PBSS)
... Financial Capital
... Physical Capital
... Intangible Capital
So this maps as follows:
People / Human Capital
... ... Individual
... ... Intellectual
... ... Social
... ... Cultural
Natural Capital
... ... Natural Capital
PBSS - Financial Capital
... ... Financial
PBSS - Physical Capital
... ... Built
PBSS - Intangible Capital
... ... Political


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