TRUE VALUE METRICS
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Accounting for ALL the Capitals
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Navigation to a massive amount of information This page accessed: 2019-03-23
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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!
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SECTION I
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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.
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THESE METRICS ARE USED FOR DECISION MAKING
GDP GROWTH CORPORATE PROFITS CAPITAL MARKETS
AND THE RESULTS ARE FAR FROM SATISFACTORY
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.
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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.
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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)
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MANAGE ALL THE ACTIVITIES
CONSUMPTION DRIVING THE MODERN ECONOMY
CONSUMPTION

SOCIO
PROCESSES

ENVIRO
SUPPLY CHAIN

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 econmies. Rich economies are increasingly associated with waste, luxury and inefficiency.
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EMPOWER ALL THE ACTORS
MANAGE SO THAT ALL ACTORS 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 for an elite few, bue extremely disappointing for everyone else. The concentration of wealth and power is fueling global discontent in very destabilizing ways.
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CONSIDER ALL THE PERSPECTIVES
NOT ONLY PROFIT, BUT ALSO PEOPLE, PLACE & PRODUCT
PEOPLE

Men, women & children
PLACE

Where people live their lives
PRODUCTS

Consumption & 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.
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CONSIDER THE RESULTS
SOCIAL PROGRESS UNACCEPTABLY WEAK
FOR INVESTORS
STOCKS UP

Stock market has been spectacular
WAGES FLAT
PROFITS -v- WAGES

and wages flatlining while productivity grows.
WRONG SIGNAL
GDP growing / GPI flat

While GDP is up, progress (GPI) is flat
NATURAL CAPITAL BEING DANGEROUSLY DEGRADED
RESOURCE
DEPLETION

Mining for natural resources
ENVIRONMENTAL
DEGRADATION

Deforestation for commercial agriculture
CLIMATE CHANGE
EXTREME WEATHER

GHGs and destabilizing temperature rise
SOCIAL CAPITAL DIMINISHED BY MASSIVE INEQUALITY
OBSCENE LUXURY SLUMS CRISIS of POVERTY
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SECTION II
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STATE
THE STATE OF ALL THE CAPITALS
SOCIAL
CAPITAL


SOCIO
NATURAL
CAPITAL


ENVIRO
ECONOMIC
CAPITAL


ECONOMIC
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SOCIAL CAPITAL
THE STATE OF SOCIETY
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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.
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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

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NATURAL CAPITAL
NATURE / SOURCE OF ALL VALUE
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SIX SEGMENTS OF NATURAL CAPITAL
LAND
WATER
AIR
RESOURCES
BIODIVERSITY
ECOSYSTEMS
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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.
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ECONOMIC CAPITAL
ECONOMY
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THREE SEGMENTS OF ECONOMIC CAPITAL
FINANCIAL

Adding to wealth is dominant goal ...
PHYSICAL

Tangible physical structures ...
INTANGIBLE

Important elements for quality of life ...
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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.
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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

Global temperature on the rise
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PHYSICAL CAPITAL
THE PHYSICAL (REAL) ECONOMY
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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).
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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.
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INFRASTRUCTURE
BRIDGES ROAD RAIL PORTS WATER TELECOM Infrastructure makes a big difference to a place. Every sector of the economy has an infrastructure component. A modern economy needs efficient infrastructure in order to function effectively. The lack of infrastructure is one of the root causes of poverty in a place. Infrastructure has substantial cost, but also should have long life and well designed infrastructure results in long term net benefit to the socio-enviro-economi system.
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MINING AND MANUFACTURING PROCESSES
MINING I MINING II IRON & STEEL
CONCRETE
PETROCHEMICALS
PULP & PAPER
Mining and manufacturing processes make products which are needed to satisfy the needs of people ... but the performance of processes determines how much damage to society and the environment comes as a result of this production. The scale of the prevailing environmental inefficiency is not well known and by association the oportunity for process improvement. This is important for efforts to achieve sustainability.
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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.
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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.
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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
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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
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INSTITUTIONAL CAPITAL
GOVERNANCE / RULE OF LAW / ORGANIZATIONS
Legislation Companies Police Courts Military Accounting
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CULTURAL CAPITAL
MUSIC and ARTS / RECREATION / RELIGION
Music Drama Opera
Dance
Religion
History
Cultural capital has a lot of value ...
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SECTION III
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FLOW
INPUTS ... ACTIVITIES ... OUTPUTS
ACTIVITIES / ACTORS / PERSPECTIVES
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STREAMS / STRANDS / STRINGS
WHAT ARE ALL THE IMPACTS FOR THE LIFE CYCLE OF PRODUCTS?
EXTRACTION
SUPPLY CHAIN PRODUCTION USE
LANDFILL RECYCLE
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.
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CONSIDER ALL THE PERSPECTIVES
EMPOWER ALL THE ACTORS
AND ACCOUNT FOR IMPACT ON ALL THE CAPITALS
ORGANIZATIONS
More than corporate profit
PEOPLE

Men, women & children
PLACE

Where people live their lives
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.
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MANAGE ALL THE ACTIVITIES
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.
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HIGH PRODUCT VOLUME AND LOW PRODUCT COST DELIVERS PROFIT
LOWEST POSSIBLE WAGES
LOWEST COST OPERATIONS
MAX POSSIBLE PROFIT
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.
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MANAGE FOR ORGANIZATIONAL PERFORMANCE
ORGANIZATIONS FOCUS ON OPTIMIZING FOR PROFIT
LITTLE ATTENTION IS PAID TO 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.
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MANAGE THE INDIVIDUAL PROCESSES
WHAT IS THE IMPACT ON SOCIETY AND THE ENVIRONMENT?
MINING
LOGISTICS ENERGY
ELECTRICITY PRODUCTION
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.
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MANAGE FOR THE SECTORS / INDUSTRIES
WHAT IS THE IMPACT ON SOCIETY AND THE ENVIRONMENT?
MINING
LOGISTICS ENERGY
ELECTRICITY PRODUCTION
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.
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PEOPLE
BETTER LIVES FOR ALL PEOPLE EVERYWHERE
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
PEOPLE WANT QUALITY OF LIFE AND A REASONABLE COST OF LIVING
PEOPLE WANT A BETTER FUTURE FOR THEMSELVES AND THEIR FAMILIES
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EMPOWER THE INDIVIDUAL AND ENABLE BASIS FOR A BETTER LIFE
ESTABLISH ACCOUNTABILITY FOR PEOPLE WITHIN ORGANIZATIONS
IMPROVE DECISION PROCESS FOR INVESTMENT DECISIONS
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PLACE
CITIES / COMMUNITIES
Cities and Communities are where people live their lives
Performance of many sectors enables the quality of life of the population of the place
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
PLACE is a key determinant of quality of life. It is where every sector delivers (or not) the goods and services need for people to have a decent quality of life.
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PRODUCTS
NEEDED FOR A DECENT QUALITY OF LIFE
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NATURE ... FOUNDATION FOR SOME PRODUCTS
EXTRACTION PRODUCTION USE POST USE LANDFILL RECYCLING
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EXTRACTION ... START OF THE CHAIN
EXTRACTION

LOGISTICS
PRODUCTION
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.
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IMPACT DURING USE OF THE PRODUCT
DRIVING

EATING
CONSUMING
Use of products supports a decent standard of living. But the use of products also means there is impact as a result of their production.
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IMPACT WHEN THE PRODUCT IS DISCARDED
DRIVING

EATING
CONSUMING
Use of products supports a decent standard of living. But the use of products also means there is impact as a result of their production.
  • Products are needed to enable quality of life for people
  • There are essential needs, and also less important wants
  • For the very rich there is a luxury sector
  • But products also create environmental degradation
CONSUMPTION ... PROCESSES PRODUCE PRODUCTS
FOOD

CARS

CLOTHES
Products (goods and services) are some of the things that support quality of life. Without them quality of life degrades, and at the limit, people die. Products flow through the system. Design products the right way and the performance of the system can be improved enormously.
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PEOPLE ... CONSUMERS 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.
Responsible consumption and lifestyle can be good for health and happiness ... wellness
The consumption of products has mostly negative impact on environment through all the supply chain
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ORGANIZATIONS ... MAKE PRODUCTS TO MAKE PROFIT
GDP GROWTH MORE SALES PROFITS STOCK VALUE JOBS PAYROLL
When GDP is growing it is much easier to sell products and deliver profits.
If profits go up, then the stock price goes up and investors are happy
When payroll goes up, then profits go down and investors are not happy
Wages have flatlined for 4 decades while profits have risen substantially.
A lot of people are 'mad as hell'
PEOPLE ... CONSUMPTION, QUALITY OF LIFE & ENVIRONMENTAL IMPACTS
COMPANIES ... PROFITS & SOCIAL & ENVIRONMENTAL IMPACTS
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SECTION IV
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MANAGEMENT AND ACCOUNTABILITY
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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
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PROGRESS and PERFORMANCE
PAST PERFORMANCE HAS BEEN CATASTROPHIC
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PROGRESS IS CHANGE IN STATE (BALANCE SHEET)
PROGRESS IS IMPROVEMENT IN STATE
Social, natural (ecosystem) and economic activities cause change in state. Sustainable progress is getting the right balance between social impact, environmental impact and economic impact (which includes money profit and wealth impact).
Metrics about STATE is very much easier to collect than trying to collect information about a myriad of activities that have all sorts of impact on social, natural and economic capital (state). This is a foundational characteristic of the TrueValueMetrics (TVM) framing for management accountancy.
  • Progress is change in state (balance sheet) from beginning to end of period.
  • No need for any information about activities during the period.
  • This is a major simplification and far easier to implement.
  • The idea is derived from a basic concept in conventional accountancy (incomplete record reporting).
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WRONG GOAL, WRONG METRIC, WRONG RESULT
THE FINANCIAL ECONOMY / MONEY and LIQUIDITY
MONEY
US$ has has massive value loss over time
MONEY BASE
Monetary base has expanded since 2008
STOCKS UP
Stock market has been spectacular
MONEY DOWN
... but the buying power of the US$ is way down
WAGES FLAT
and wages flatlining while productivity grows.
GDP -v- GPI
While GDP is up, progress (GPI) is flat
MONEY

LOSING VALUE
GDP SIZE

HUGE GROWTH
INTANGIBLES
SMALL REAL VALUE
Money is the dominant measure ... but has been gamed for decades. It does not stand for anything and totally depends on 'trust' ... whatever that is.
  • The financial economy has grown robustly since the 1980s.
  • Profits, Stock Prices and GDP measure success. Society and the environment are ignored.
  • Amazing innovation has been deployed mainly to improve profit performance.
  • Huge corporate organizations have emerged with immense monopolistic power.
  • Concentration of economic power by individuals and has come at the expense of everyone else.
  • A lot of people are 'mad as hell' and don't intend to take it any more.

STOCKS UP, PROFITS UP/WAGES DOWN, SOCIETY DOWN
STOCKS UP
Stock market has been spectacular
PROFITS -v- WAGES
and wages flatlining while productivity grows.
GDP growing / GPI flat
While GDP is up, progress (GPI) is flat
People make decisions ... as individuals, within organizations, as investors ... and it is pretty clear that the decisions that have been made over the past 50+ years have served the interest of the rich and powerful a whole lot more than the majority of the people on the planet who work hard and don't share very much in the wealth they are creating.
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MASSIVE DAMAGE TO NATURAL CAPITAL
RESOURCE
DEPLETION

Mining for natural resources
ENVIRONMENTAL
DEGRADATION

Deforestation for commercial agriculture
CLIMATE CHANGE
EXTREME WEATHER

GHGs and destabilizing temperature rise
TrueValueMetrics seeks to enhance accountancy to include Social Impact and Environmental Impact. Better management needs better metrics and that will be a gamechanger.
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MANY ISSUES / PROBLEMS

INCOME
INEQUALITY

PLASTIC
POLLUTION

CONSUMPTION
WASTE

FOOD
DEFORESTATION

NO WATER
DROUGHT

FINANCIAL
GREED
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TERRIBLE OUTCOMES

Poverty
Starvation

War - Physical
Destruction

War - Human
Lives Lost

Urban
Decay

Industrial
Pollution

Extreme
Weather
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EXISTENTIAL RISKS GROWING
CLIMATE
CHANGE
ECOSYSTEM
FAILURE
INEQUALITY
WEALTH
INEQUALITY
POVERTY
GLOBAL
WARFARE
BANK
FAILURE
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GDP ... MORE CONSUMPTION, MORE GDP
CONSUMPTION TRENDS ... LESS IS SOMETIMES BETTER
BUTTER / MARGARINE
BEVERAGES
TOBACCO
ENERGY
FOOD
MEAT
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ECONOMIC CAPITAL ... PROFIT and PAYROLL
PRODUCTIVITY

PROFITS
EXECUTIVES

HUGE GAINS
WORKERS

FLATLINE
Profits and stock market have increased spectacularly in the past 40 years and executive pay has increased from 50X to 500X of worker pay. Worker pay has flatlined since the 1980s while productivity and profits have increased.
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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.
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MANAGEMENT AND ACCOUNTABILITY
MORE THAN OPTIMIZING FOR PROFIT PERFORMANCE
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TRUE VALUE METRICS / DATA at the CENTER
YOU MANAGE WHAT YOU MEASURE
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ECONOMIC ACTIVITY IMPACTS SOCIAL, NATURAL & ECONOMIC CAPITAL
Data at the Center Activities change State Enhanced Accountancy
  • Management is the Art of Making Changes to Achieve Improvement.
  • Collect and Analyze Data to Understand How Things Work.
  • Expand the GOOD ... Eliminate the BAD.
  • More and More Data and Analysis is not Better Management.
  • Good Management Moves the Needle in the Right Direction.
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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
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ABOUT PETER BURGESS
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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

TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative.
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