TRUE VALUE METRICS
image missing Numbering the Triple Bottom Line

Accounting for ALL the Capitals
image missing
Navigation to a massive amount of information This page accessed: 2019-11-21
SITE
NAV
CONTEXT
ISSUES
POSSIBILITIES
HOW THE
WORLD
WORKS
SECTOR
PROCESS
IMPACT
STATE
ALL THE
CAPITALS
ACTORS
PEOPLE
ORGANIZATIONS
PRODUCTS
STUFF
CONSUMPTION
PLACE
COMMUNITIES
COUNTRIES
PEOPLE
QUALITY
OF LIFE
NATURE
SOURCE of
all VALUE
ECONOMY
MONEY
LIQUIDITY
TRUEVALUE
DATA at
the CENTER
ABOUT
VISION
STRATEGY
INPAGE (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Double Entry AccountabilityTM
for PEOPLE, PLANET and PROFIT
FACING UP TO CHRONIC UNSUSTAINABILITY
METRICS TO MAKE THE WORLD A BETTER PLACE
TRANSPARENCY / ACCOUNTING / ACCOUNTABILITY
WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WOULD BE OF HUGE VALUE!
.
SECTION I
.
HOW THE WORLD WORKS
SOCIO-ENVIRO-ECONOMIC SYSTEM
IT'S A COMPLEX WORLD!
Managing complexity is difficult. In modern times, the system has been managed for the benefit of those who own financial capital. The dominant economic metrics have been GDP growth, corporate profit growth and stock market wealth. Management metrics have been aligned to these same goals, and have been very effective.
.
THESE METRICS ARE USED FOR DECISION MAKING
GDP GROWTH CORPORATE PROFITS CAPITAL MARKETS
AND THE RESULTS ARE FAR FROM SATISFACTORY
IN FACT, THE RESULTS ARE CATASTROPHIC
INEQUALITY / POVERTY ENVIRONMENTAL DEGRADATION EXTREME WEATHER
Luxury Yachts Homeless camp Deforestation Ocean plastic Eye of storm Hurricane
While there has been impressive financial performance, it has come at the expense of catastrophic inequality with far too many left behind, degradation of the environment and climate instability with extreme weather events.
.
TAKE INTO ACCOUNT ALL THE CAPITALS
GOING BEYOND FINANCIAL CAPITAL AND MONEY WEALTH
SOCIAL
CAPITAL


SOCIO
NATURAL
CAPITAL


ENVIRO
ECONOMIC
CAPITAL


ECONOMIC
Social and economic progress has been achieved over the past 200+ years by expoiting natural capital. All value originates with nature and everything depends on nature. This is unsustainable, but technological innovation can (must) be used to change things for the better.
.
ACTIVITIES have IMPACT on ALL the CAPITALS
SOCIAL IMPACT ENVIRONMENTAL IMPACT ECONOMIC IMPACT
There is a cost of living to support quality of life
There are contributions that people make
There is net benefit AND change to capitals (hopefully positive)
There are storms, earthquakes and natural disasters
Ecosystem services are a source of all value
There is net benefit AND change to capitals (mostly negative)
There are operating costs for all oconomic activities
There are benefits from economic activity
There is net benefit AND change to capitals (hopefully positive)
.
MANAGE ALL THE ACTIVITIES AND ACTORS
.
CONSUMPTION DRIVING THE MODERN ECONOMY
CONSUMPTION IMPACTS OF PRODUCTION
Quality of Life
SOCIO
Pollution
ENVIRO
Profit
ECONOMIC
Consumption is driving the modern economy. It looks like success as long as the depletion of natural resourcs and the degradation of the environment is ignored.There is strong correlation between better quality of life and more consumption in poor economies, but less so in mature rich economies. Rich economies are increasingly associated with catastrophic pollution, waste, inequality and inefficiency.
.
MOST ACTORS ARE PEOPLE ... WHO SHOULD BE HELD ACCOUNTABLE
PEOPLE HAVE A VARIETY OF DIFFERENT ROLES
MANAGE SO THAT EVERYONE IS ACCOUNTABLE
AS INDIVIDUALS

Live life ... work & family
IN ORGANIZATIONS

Do the work ... make the decisions
AS INVESTORS

Allocate financial resources
Prevailing metrics and financialization have had mixed results ... very good economic ouitcomes for an elite few, but extremely disappointing for everyone else. The concentration of wealth and power is fueling global discontent in very destabilizing ways, including social discontent and anger at the establishment elites and increasingly out-of-control climate instability.
.
NATURE IS ALSO AN ACTOR ... AND SHOULD BE RESPECTED
NATURE PREDATES PEOPLE BY BILLIONS OF YEARS
AND IS THE SOURCE OF ALL VALUE
FOR EXAMPLE NATURE MAKES A FISHERY SUSTAINABLE
JUVENILE NURSERY INDUSTRIAL FISHERY SEAFOOD MARKET
  • Natural Capital is foundation for this fish and food flow
  • Economic Activity captures fish, employs fisherfolk and earns profit.
  • Social Capital benefits from employment and food
.
CONSIDER ALL THE PERSPECTIVES
NOT ONLY PROFIT, BUT ALSO PEOPLE, PLACE & PRODUCT
PROFIT

Economic goal
PEOPLE

Men, women & children
PLACE

Where people live
PRODUCTS

Quality of Life
There is valueadd when there is a positive balance from every perspective. Profit alone is not enough, people should also progress. And the progress of people is enhanced by the characteristics of the place. Products impact everything. The production of products is a factor in the generation of profits. The consumption of products is a factor in the quality of life of people. Not least, the place influences where products may be and are produced.
.
CONSIDER THE RESULTS
GREAT FINANCIAL PERFORMANCE SINCE WWII
PRODUCTIVITY UP
WAGES UP

From end WWII to around 1980
STRONG
GDP GROWTH

GDP growth has been very strong
CAPITAL MARKETS
STOCK VALUES UP

Stock market has been spectacular
ESSENTIAL
HOUSING

More decent housing to around 1980
BUT SOCIAL PROGRESS WEAK SINCE THE 1980s
PRODUCTIVITY UP
WAGES FLAT

From around 1980 to present time
GDP GROWING
GPI FLAT

While GDP is up, progress (GPI) is flat
GROWING
INEQUALITY

More obscene luxury
ESSENTIAL
HOUSING

Slums proliferating since 1980
AND NATURAL CAPITAL BEING DANGEROUSLY DEGRADED
RESOURCE
DEPLETION

Mining for natural resources
ENVIRONMENTAL
DEGRADATION

Deforestation for palm-oil plantations
INDUSTRIAL
POLLUTION

GHGs, liquids and solids
CLIMATE CHANGE
EXTREME WEATHER

Extreme weather
.
IMPERATIVE FOR RADICAL ACCOUNTABILITY
EVERYTHING FOCUSED ON PROFIT PERFORMANCE MAKES NO SENSE
We talk about profit and money and wealth But not about low wages, poverty and deprivation And how the system is rigged in favor of the wealthy And all sorts of abysmal hidden corporate behavior
The only group that are protected systemically are investors ... everyone else nay be lied to with impunity. It is called the First Amendment. But there is nothing to stop society from doing RADICAL ACCOUNTABILITY so that misfeasance in every aspect of society is exposed.
.
SECTION II
.
.
STATE
THE STATE OF ALL THE CAPITALS
SOCIAL
CAPITAL


SOCIO
NATURAL
CAPITAL


ENVIRO
ECONOMIC
CAPITAL


ECONOMIC
.
SOCIAL CAPITAL
THE STATE OF SOCIETY
.
THREE SEGMENTS OF SOCIAL CAPITAL
HUMAN CAPITAL RELATIONSHIP CAPITAL LOCATIONAL CAPITAL
Individual

The basis for everything important ...
Family / Community

The family an important part of the social structure
Place / Community

The place factors into quality of life
Human Capital
Reflects quality of life at the individual level
Past: Value emerging from childhood, parenting, education, healthcare, family and friends, experience ...
Present: Current situation, job and earnings, family and friends, housing, health, wealth, etc. ...
Future: How well prepared. Possibilities in the place ... beyond the place. Macroeconomic trends. Leadership behavior.
Relationship Capital
The relationships associated with family, friends and connections magnifies or diminishes human capital.
A good idea that is never shared has no value, but the network effect of many connections may make it valuable.
Locational Capital
The place really matters.
Human capital is augmented by a high potential place and is diminished by a low performance place.
A really smart place is not driven by technology but by strategy where the potential of people is well understood and used to good effect.
.
PEOPLE ARE THE ACTORS IN THE SYSTEM
It is people (actors with identities) that must be held accountable.
AS AN INDIVIDUAL
AND/OR AS FAMILY

AS AN INDIVIDUAL
IN AN ORGANIZATION

AS AN INDIVIDUAL
MAKING INVESTMENTS

.
NATURAL CAPITAL
NATURE / SOURCE OF ALL VALUE
.
SIX SEGMENTS OF NATURAL CAPITAL
LAND
WATER
AIR
RESOURCES
BIODIVERSITY
ECOSYSTEMS
.
LAND
There is a limited amount of land on the planet. Land is one of the key planetary limits. It is vital that land is used in a sustainable manner rather than being degraded in the interest of unsustainable economic performance.
WATER
Without water, life as we know it cannot exist. In conventional economics, water is undervalued because for a big part of history it has been abundant and easily accessed. This is changing and water must now be valued more appropriately.
AIR
Clean air is good for human health as well as fauna and flora. Many steps have been taken to reduce the problem of air pollution that we can see, but not enough for the air pollution like CO2 that we cannot see, yet still dangerous.
RESOURCES
Natural resources have helped power the industrial revolution and enabled massive improvements in quality of life, but there are limits because of both depletion and egradation of natural capital. Better use of resources is essential.
BIODIVERSITY
Biodiversity is important. Humankind has emerged over millions of years as a result of massive biodiversity and complex evolution. The future of life depends on the continuing health of the biosphere in all its manifestations.
ECOSYSTEMS
There is genius in the way ecosystems have evolved over millions of years to stabilize natural systems in a way that has enabled life as we know it. We should be concerned that in the past 200 years this stability is being compromised.
  • Nature is the source of ALL value
  • To improve quality of life, nature has been exploited, depleted and degraded.
  • Nature is rapidly degrading but ignored in conventional financial and economic analysis.
  • This is NOT sustainable.
.
ECONOMIC CAPITAL
ECONOMY
.
THREE MAIN SEGMENTS OF ECONOMIC CAPITAL
FINANCIAL

Adding to wealth is dominant goal ...
PHYSICAL

Tangible physical structures ...
INTANGIBLE

Important elements for quality of life ...
.
FINANCIAL CAPITAL
THE FINANCIAL ECONOMY
GDP GROWTH CORPORATE PROFITS CAPITAL MARKETS
In modern times, the dominant economic metrics have been GDP growth, corporate profit growth and stock market wealth. Management metrics have been aligned to these same goals, and have been very effective. TrueValueMetrics seeks to enhance accountancy to include Social Impact and Environmental Impact.
.
FINANCIALIZATION HAS BEEN GOOD FOR OWNERS BUT NOT GOOD FOR MOST OF THE WORKING MIDDLE CLASS
STOCKS UP
Stock market has been spectacular
WAGES FLAT
and wages flatlining while productivity grows.
GDP growing / GPI flat
While GDP is up, progress (GPI) is flat
AND IMPACT ON NATURAL CAPITAL IGNORED
RESOURCE
DEPLETION

Mining for natural resources
ENVIRONMENTAL
DEGRADATION

Deforestation for commercial agriculture
CLIMATE
INSTABILITY

Catastrophic costs
.
PHYSICAL CAPITAL
THE PHYSICAL (REAL) ECONOMY
.
LAND & BUILDINGS INFRASTRUCTURE PROCESSES EQUIPMENT
WORKING CAPITAL
  • Modern engineering and technology is deployed and exploited to improve profit performance.
  • Rather little technology is deployed to make society and the world a better place.
  • The modern 'real' economy is pretty amazing, but not so much in the news (Western news, that is).
  • Many of the more amazing things are going on in the Middle East (e.g. Dubai) and Far East (China).
.
LAND AND BUILDINGS
COMMERCIAL FARMLAND HOTEL APARTMENTS ROW HOUSES SUBURBAN Buildings represent a big part of the physical economy, and are a big part of life. They have a long life and require a substantial amount of materials to build. They are where people live their lives. Buildings have impact on the environment during construction and again during their life because of operational energy use.
.
INFRASTRUCTURE
BRIDGES ROAD RAIL PORTS WATER TELECOM Infrastructure makes a big difference to a place. The lack of infrastructure is one of the root causes of poverty in a place. Infrastructure has substantial cost to build, but long life means that infrastructure benefits accrue over a long time. The question of pubic or private ownership of infrastructure is an important ongoing debate.
.
MINING AND MANUFACTURING PROCESSES
MINING I MINING II IRON & STEEL
CONCRETE
PETROCHEMICALS
PULP & PAPER
Processes make products which are needed to satisfy the needs of people ... but the social and environmental efficiency of processes is not accounted for effectively. Business understands the profit performance of processes, but without better metrics, social and environmental improvement get ignored.
.
MACHINERY, EQUIPMENT & VEHICLES
SHIPS AIRCRAFT BUSES
AUTOMATION
MINING
OIL & GAS
The performance of machinery, equipment and vehicles has progressed enormously over the last century. Human brawn is no longer an important part of the production process, rather it is the machine that gets the work done. In the future is is not only going to be the brawn of the machine but also the brain of the machine. The challenge is to make this a benefit to society, the environment and the economy.
.
PRODUCTS / WORKING CAPITAL
SHIPPING TRUCKING
FULFILLMENT
WAREHOUSE
RETAIL
E-COMMERCE
Working capital is a vital component in the economy enabling the efficient function of essential organizations. Technology has enabled substantial improvement in the operation of the supply chain and indeed has made possible global logistics that have become a key part of the modern economy.
.
INTANGIBLE CAPITAL
THE INTANGIBLE ECONOMY
Some of the things that make life worth living
KNOWLEDGE CAPITAL INSTITUTIONAL CAPITAL CULTURAL CAPITAL
KNOWLEDGE EDUCATION GOVERNMENT SECURITY CULTURE RELIGION
.
KNOWLEDGE CAPITAL
EDUCATION / RESEARCH / TECHNOLOGY
KNOWLEDGE
Albert Einstein
EDUCATION
Cambridge
BIO-TECH
Genetic code / DNA
AUTOMATION
Auto Assembly
DIGITAL TECH

Quantum Computing
AEROSPACE

Space Shuttle
It is human imagination that makes knowledge possible. Humankind now has more easy access to knowledge than at any time in history in all sorts of fields. This knowledge has the potential for both good and bad ... nuclear power or nuclear bombs ... digital distribution of news or dangerous misinformation ... cures for disease or biological warfare ... and so on. There are huge possibilities if well used.
.
INSTITUTIONAL CAPITAL
GOVERNANCE / RULE OF LAW / ORGANIZATIONS
Legislation Companies Police Courts Military Accounting The challenge of ordering society in an effective way has been in play for a very long time, and getting this right continues to be a subject of great debate. What is clear is that when the enabling environment of governance, rule of law and organizations becomes dysfunctional, quality of life rapidly degenerates and the system won't work.
.
CULTURAL CAPITAL
MUSIC and ARTS / RECREATION / RELIGION
Music Drama Opera
Dance
Religion
History
Cultural capital comprises all sorts of activities that give pleasure and make life worth living. They nourish the soul. Culture is not a core part of conventional economic and financial analysis, but it should be because it is such an important component of quality of life. To have a sustainable world there is a need for less materialism, and more cultural activity.
.
SECTION III
.
FLOW
INPUTS ... ACTIVITIES ... OUTPUTS
ACTIVITIES / ACTORS / PERSPECTIVES
.
STREAMS / STRANDS / STRINGS
WHAT ARE ALL THE IMPACTS FOR THE LIFE CYCLE OF PRODUCTS?
NATURE EXTRACTION
SUPPLY CHAIN PRODUCTION
USE
WASTE
Everything that is used to support a high standard of living and quality of life has a long supply chain, then production and distribution, then use, and then a post use waste chain. For metrics to be meaningful, all of these stages must be brought into account.
.
CONSIDER ALL THE PERSPECTIVES
EMPOWER ALL THE ACTORS
AND ACCOUNT FOR IMPACT ON ALL THE CAPITALS
TECHNOLOGY

Enabler of progress
ORGANIZATIONS
More than profit
PEOPLE

Men, women & children
PLACE

Where people live
PRODUCTS

Quality of Life
Some people are very fortunate, and others less so. The accident of birth should not be the main determinant of success and a happy productive life. There should be opportunity for everyone. The characteristics of the place make a big difference to quality of life. The choices people make regarding the products purchased and consumed impact the person, the economy and the environment.
.
ROLE PLAYED BY TECHNOLOGY
PRODUCT CONSUMPTION IS A DRIVER OF THE MODERN ECONOMY
CONSUMPTION
PROCESSES
MATERIALS
ENERGY
PAYROLL
Consumption is driving the modern economy. It looks like success as long as the depletion of natural resourcs and the degradation of the environment is ignored.There is strong correlation between better quality of life and more consumption in poor economies, but less so in mature rich econmies. Rich economies are increasingly associated with waste, luxury and inefficiency.
.
ROLE PLAYED BY CORPORATE ORGANIZATIONS
ALL HAVE SUBSTANTIAL IMPACT ON SOCIETY AND THE ENVIRONMENT
DIGITAL TECH
Google
OIL & GAS
ExxonMobil
AERO ENGINES
Rolls Royce
BANKING
HSBC
ENGINEERING GE FOOD Unilever
Most of the global economy comprises products that are produced by very big organizations that are complex with multiple factories in many different locations, and supply chains that span the globe. It is not easy to understand these companies in a way that makes it possible to hold them accountable for their behavior. Nevertheless, despite their complexity, they are able to communicate their profit performance to investors, but not their social impact nor their environmental impact, even where these are material. This has to change.
.
ROLE PLAYED BY INDIVIDUAL PROCESSES & FACTORIES
WHAT IS THE IMPACT ON SOCIETY AND THE ENVIRONMENT?
MINING
LOGISTICS ENERGY
ELECTRICITY PRODUCTION
OIL REFINERY
Every sector, every industry, has become very specialized and over a long period of time has been optimized for profit performance. Profit performance has been exceptional for decades, but too little attention has been paid to social and environmental issues. This must change. Process improvements are essential and must focus in improving social impact and environmental impact as well as merely being more profitable.
.
MANAGE FOR THE SECTORS / INDUSTRIES
WHAT IS THE IMPACT ON SOCIETY AND THE ENVIRONMENT?
MINING
LOGISTICS ENERGY
ELECTRICITY PRODUCTION
AGRICULTURE
HEALTHCARE RAIL
Every sector, every industry, has become very specialized and over a long period of time has been optimized for profit performance. Profit performance has been exceptional for decades, but too little attention has been paid to social and environmental issues. This must change. Process improvements are essential and must focus in improving social impact and environmental impact as well as merely being more profitable.
.
PEOPLE ... THE ULTIMATE ACTORS
.
PEOPLE MAKE DECISIONS ABOUT THE CONSUMPTION OF PRODUCTS
Food - Vegetables Food - Meat Housing Clothes Mobility Recreation
More consumption correlates to a better quality of life up to a certain level. Beyond that level more consumption may well have negative consequences, as for example too much food may result in obesity and diabetes or worse.
.
PEOPLE AS CONTRIBUTORS ... AS DECISION MAKERS
AS INDIVIDUALS

Live life ... work & family
IN ORGANIZATIONS

Do the work ... make the decisions
AS INVESTORS

Allocate financial resources
EMPOWER THE INDIVIDUAL AND ENABLE BASIS FOR A BETTER LIFE
Every individual is different, both in what they are capable of doing and how they want to live their lives. People should have the freedom to succeed in all sorts of good ways, and should be helped so that they never fail. People need the facts about themselves and everything around them.
ESTABLISH ACCOUNTABILITY FOR PEOPLE WITHIN ORGANIZATIONS
Companies are important drivers of the economy. Within companies it is people that make the decisions, and for many decades the dominant metric for success has been profit without taking into consideration impact on society and nature. This must change. Profit performance on its own is not enough!
IMPROVE DECISION PROCESS FOR INVESTMENT DECISIONS
The allocation of capital shapes the future of the economy. People make the decisions about what investments should be made and have been guided mainly by the potential for growth of financial wealth without taking into consideration issues relating to society and the environment. These other issues matter.
.
.
PLACE
THE CRITICAL VALUE ADD FROM LOCATIONAL CAPITAL
.
CITIES / COMMUNITIES
Cities and Communities are where people live their lives
MAIN ST.
SCHOOLS CHURCHES POLICE RECREATION HOSPITALS
SUBURB
UNIVERSITIES HOUSING FIRE RELAXATION PERSONNEL
Everything is needed in the place to enable Quality of Life. Everything is interconnected. Nothing important can be missing ... multi-sector is essential
.
COUNTRIES
More than 200 countries ... with vastly different characteristics
Data at the country level useful for broad comparisons, not so much for management of performance
.
.
PRODUCTS
PRODUCTS IMPACT PEOPLE AND ORGANIZATIONS AND NATURE
.
NEEDED FOR A DECENT QUALITY OF LIFE
Food - Vegetables Food - Meat Housing Clothes Mobility Recreation
More consumption correlates to a better quality of life up to a certain level. Beyond that level more consumption may well have negative consequences, as for example too much food may result in obesity and diabetes or worse.
.
PRODUCTS START WITH NATURE AND HAVE A LONG LIFE CYCLE
NATURE EXTRACTION

LOGISTICS
PRODUCTION
LANDFILL RECYCLING
DRIVING

EATING
CONSUMING
More products and more consumption improves quality of life up to a point. But the manufacture of products results in industrial pollution which is bad for the planet. Getting a better balance is essential.
.
.
SECTION IV
.
MANAGEMENT
MOVING THE NEEDLE ON IMPORTANT ISSUES
.
Peter Drucker famously said you manage what you measure ...
Peter Drucker famously said 'You manage what you measure'
This is undoubtedly true ... in the corporate world, the components that go into making profit are measured intensely in order to improve profit performance ... and it works!
Unfortunately, we don't do anything like the same amount of measuring in order to improve society and avoid degrading the environment ... and we don't have any easy way of talking about social performance and environmental performance in the same way that we are able to talk about corporate performance and investment portfolio performance. This has to change
We argue that you had better measure the right things
.
.
ABOUT THE TVM INITIATIVE
image missing Numbering the Triple Bottom Line

Accounting for ALL the Capitals
image missing
TRANSPARENCY and ACCOUNTABILITY
METRICS TO MAKE THE WORLD A BETTER PLACE
  • Uses the core concepts of conventional accountancy.
  • Enhances the concepts to address the issue of social impact.
  • Also incorporates the impacts linked to environmental changes.
  • Considers multiple perspectives beyond the corporate reporting entity.
  • Accounts for impacts of any activity on social, natural and economic capitals.
  • Accounts for energy use in processes and embedded in products.
  • Acccounts for social impact associated with profile of payroll.
  • Accounts for impacts that have material impact on sustainability.
Data at the Center Data Everywhere
These schematics were drawn around 1995 early in the days of electronic data collection. What was expensive then, has now become relatively low cost. However, the challenge remains to make use of data in a meaningful way so that better decision get made.
.
ACCOUNTING FOR EVERYTHING THAT MATTERS
THE TRENDS ARE CATASTROPHIC
ACCOUNTING FOR SOCIAL, ECONOMIC AND NATURAL CAPITALS
COLOR CODE DISTANT PAST PRESENT NOT GOOD FUTURE COLLAPSE
What science shows is that nature is the foundation for everything. Most of the time there is a complex natural balance or equilibrium, but periodically it gets out of balance and many changes take place very rapidly until another equilibrium is found. Because of humankind's economic activity we have arrived at a tipping point and the equilibrium has been disturbed. It is impossible to predict what future the changes will be .,.. but we do know that there will be massive change and it is unlikly that humankind will have the capacity to do very much about it. BE WARNED! GDP growth will aggravate this crisis, not solve it, but smart policy and technological investment and deployment might mitigate the problem significantly. Inaction is criminal.
Aggregated Socio-Enviro-Economic Trends
What has been happening ... What needs to happen in the immediate future
All the segments of capital Trends to now Needed for the future
.
THERE IS AN IMPORTANT IDEA IN ACCOUNTANCY THAT IS VERY POWERFUL
Balance sheet improvement over time is progress. Measure the changes, and you measure progress.
NO CHANGE IN BALANCE SHEET
STEADY STATE
GROWTH IN THE BALANCE SHEET
POSITIVE PROGRESS / VALUEADD
DIMINUTION OF THE BALANCE SHEET
VALUE DESTRUCTION
.
CONVENTIONAL ACCOUNTANCY IS WELL ESTABLISHED
Good accounting embraces both P&L Accounts and Balance Sheet Accounts
Profit and Loss Account (P&L A/C) P&L A/C with Balance Sheets
.
TVM Enhanced Accounting also embraces the impacts on externalities
Add Good Impact Deduct Bad Impact Report both Good and Bad
Enhancing the Profit and Loss Account
Adding in the BAD impacts Adding in the GOOD impacts
Combined Financial Impact plus the Externalities
.
Only Financial / Only Entity Enhanced / Only Entity Enhanced plus impact on State
Profit and Loss Account with Enhancement
Conventional Entity Focus TVM Enhanced Focus with Externalities
TVM Enhanced Focus with ALL the CAPITALS
.
ALL ACTIVITIES (PROCESSES) CHANGE ALL CAPITALS (STATE)
These reflect more and more detail about the framing and inclusion of externalities
.
THIS IS BASIS FOR ACCOUNTING FOR EVERYTHING
Everything is summarized along the same lines as a financial consolidation
Enhanced Reporting for any Entity Which also may look like this
Processes / Entities adding up to a PRODUCT
Processes / Entities adding up to a PLACE
Processes / Entities adding up to an ORGANIZATION
Various elements adding up for a PERSON
.
ABOUT PETER BURGESS
Peter Burgess grew up in post-war Britain. He was born in Lancashire, spent the war years in the suburbs of London, and after the war moved to rural Devonshire. He was educated at Blundell's and played schoolboy rugby for the English Public Schools against Scotland before entering Cambridge. His academic training was in engineering and economics, and later a professional qualification as a Chartered Accountant. He migrated to the USA in 1967. He worked in corporate financial management until 1978, then as an independent consultant. He did intensive consultancy work with the World Bank, the UN and corporate clients, doing assignments in over 50 countries. He was an early adopter in the field of EDP and later personal computers and applied information technology. In recent years he has become deeply concerned that modern leadership is not effective and without the right focus and management tools ... hence his current work with TrueValueMetrics (TVM).
.
Site Navigation
.
SITE NAVIGATION ... OVERVIEW
Site Navigation ... Hundreds of Links
L0700-AA-180328-Section-SN-Site-Navigation
Open L0700-AA-180328-Section-SN-Site-Navigation
00 - Cover plus limited links
L0700-AA-180328-Section-00-Cover
Open L0700-AA-180328-Section-00-Cover
01 - How the World Works
L0700-AA-180328-Section-01-How-the-World-Works
Open L0700-AA-180328-Section-01-How-the-World-Works
02 - STATE ... ALL the CAPITALS
L0700-AA-180328-Section-02-State-All-the-Capitals
Open L0700-AA-180328-Section-02-State-All-the-Capitals
03 - FLOW ... Actors - Activities - Perspectives
L0700-AA-180328-Section-03-Flow-Activities-Actors-Perspectives
Open L0700-AA-180328-Section-03-Flow-Activities-Actors-Perspectives
04 - MANAGEMENT ... TrueValueMetrics and How to Move the Needle
L0700-AA-180328-Section-04-Management-TrueValueMetrics
Open L0700-AA-180328-Section-04-Management-TrueValueMetrics
???
L0700-AA-Section-01-180328
Open L0700-AA-Section-01-180328
.
TOP LEVEL SITE-NAVIGATION
TOP LEVEL SITE NAVIGATION (no graphics)
Open L07-SITE-NAVIGATION
CONTEXT / ISSUES / POSSIBILITIES (CIP)
UNDERSTANDING THE STARTING POINT ... WHERE WE ARE!
Open L070-SN-CIP
SOCIO-ENVIRO-ECONOMIC SYSTEM (SEES)
ACTIVITIES / CAPITALS / ACTORS / PLACES / PRODUCTS and more
Open L070-SN-SEES
MANAGEMENT ACCOUNTANCY (MA)
MANAGEMENT ACCOUNTANCY EMPOWERS BETTER MANAGEMENT
Open L070-SN-MA
SECTOR-VIEW
SECTORS / STREAMS / INDUSTRIES
Open L070-SN-SECTOR-VIEW
L0700-SI-NAVIGATION-BY-SECTOR
SECTORS / STREAMS / INDUSTRIES
Open L0700-SI-NAVIGATION-BY-SECTOR
TVM ...TRUE VALUE METRICS
ABOUT TVM, THE VISION AND THE STRATEGY
Open L070-SN-TVM
TPB ...ABOUT PETER BURGESS
A LIFETIME OF EXPERIENTIAL LEARNING
Open L070-SN-TPB
.
ISSUES / SUBJECTS
Alphabetical Navigation
Open L070-IS-ISSUES-SUBJECTS
OVERVIEW
ABOUT / VISION / STRATEGY
ENHANCING ACCOUNTING TO IMPROVE SYSTEM PERFORMANCE
Open L07-ABOUT-VISION-STRATEGY
CONTEXT / ISSUES /POSSIBILITIES
SYSTEMIC FAILURE / AMAZING TECHNOLOGY / HUGE POSSIBILITIES
Open L07-CONTEXT-ISSUES-POSSIBILITIES
SOCIO-ENVIRO-ECONOMIC SYSTEM
HOW THE SOCIO-ENVIRO-ECONOMIC SYSTEM WORKS
Open L07-HOW-SEES-WORKS
STATE / ALL THE CAPITALS
NOT JUST THE FINANCIAL CAPITAL
Open L07-STATE-ALL-THE-CAPITALS
SOCIAL CAPITAL / SOCIETY
PEOPLE / QUALITY OF LIFE
THE ESSENTIAL PURPOSE OF ALL ACTIVITY
Open L07-PEOPLE-QUALITY-OF-LIFE
ACTORS / PEOPLE / ORGANIZATIONS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
PLACE / COMMUNITIES / COUNTRIES
WHERE LIFE IS LIVED ... WHERE EVERYTHING COMES TOGETHER
Open L07-PLACE-COMMUNITIES-COUNTRIES
NATURAL CAPITAL / ENVIRONMENT
NATURE / SOURCE OF ALL VALUE
EVERYTHING DEPENDS ON NATURE
Open L07-NATURE-SOURCE-OF-ALL-VALUE
ECONOMIC CAPITAL / ECONOMY
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
SECTOR / PROCESS / IMPACT
EFFICIENCY & EFFECTIVENESS OF ACTIVITIES IS ESSENTIAL
Open L07-SECTOR-PROCESS-IMPACT
STREAMS / STRANDS / STRINGS
IMPACTS ALL THE WAY THROUGH THE LIFE CYCLE
Open L070-SS-STREAMS-STRANDS-STRINGS
SECTORS / INDUSTRIES
A LOT OF SPECIALIZATION AT THE SECTOR / INDUSTRY LEVEL
Open L070-SI-SECTORS-INDUSTRIES
PROCESSES
THE EFFICIENCY OF PROCESSES IS IMPORTANT
Open L070-PC-PROCESSES
FLOWS / STREAMS / IMPACT
PRODUCTS / STUFF / CONSUMPTION
SUPPORT QUALITY OF LIFE / EARN PROFITS / PROVIDE JOBS
Open L07-PRODUCTS-STUFF-CONSUMPTION
PRODUCTS
PRODUCTS FLOW THROUGH THE SYSTEM END TO END
Open L070-PD-PRODUCTS
PROGRESS & PERFORMANCE / MANAGEMENT
TRUE VALUE / DATA at the CENTER
YOU CAN'T MANAGE WHAT YOU DON'T MEASURE
Open L07-TRUE-VALUE-DATA-at-the-CENTER
METRICS for MANAGEMENT
WITHOUT METRICS ... IMPOSSIBLE TO MANAGE
Open L070-MM-METRICS-for-MANAGEMENT
ABOUT TRUEVALUEMETRICS (TVM)
ENHANCED METRICS FOR BETTER PERFORMANCE AND ACCOUNTABILITY
Open L070-TVM
TEAM / TEAMWORK
ABOUT PETER BURGESS (TPB)
A LIFETIME OF EXPERIENTIAL LEARNING
Open L070-TPB-PETER-BURGESS
TEAM / TEAMWORK
ESSENTIAL FOR SUCCESS
Open L070-TT-TEAM-TEAMWORK
TPB BIO
CV as of November 2016 (PDF)
Open Burgess Bio PDF
TPB MANUSCRIPTS
Book length manuscripts, blogs and briefs
Open L0700-TPB-BM-BURGESS-MANUSCRIPTS
TPB ESSAYS
Book length manuscripts, blogs and briefs
Open L0700-TPB-BE-BURGESS-ESSAYS
TPB ESSAYS
Book length manuscripts, blogs and briefs
Open L0700-TPB-BP-BURGESS-PRES-INFO
About Burgess / Linkedin Connections
Navigation to more than 8,000 Burgess Linkedin connections
Open L0700-TPB-Burgess-Linkedin-Connections
.
EVENTS
Events for current year (2019)
Open L0200-EVENTS-2019
EVENTS
Staying in touch with what is happening
Open L0700-TPB-EV-EVENTS
EVENTS - Prior year 2018
This also gives navigation to EVENTS for other years
Open L0200-EVENTS-2018
EVENTS - Current year 2019
This also gives navigation to EVENTS for other years
Open L0200-EVENTS-2019
.
L07-DIAGRAMS-TEMP
Graphics collection / unsorted
Open L07-AAA-DIAGRAMS-TEMP

SITE COUNT<
Amazing and shiny stats
Blog Counters Reset to zero January 20, 2015
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.
WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WILL HELP MAKE THAT HAPPEN


The information on this website may only be used for socio-enviro-economic performance analysis, personal information, education and limited low profit purposes
Copyright © 2005-2019 Peter Burgess. All rights reserved.