TRUE VALUE METRICS
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Accounting for ALL the Capitals
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SITE
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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 / ACCOUNTABILITY
WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WOULD BE OF HUGE VALUE!
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#1 CONTEXT
ISSUES and POSSIBILITIES
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MANY ISSUES / PROBLEMS

INCOME
INEQUALITY

PLASTIC
POLLUTION

CONSUMPTION
WASTE

FOOD
DEFORESTATION

NO WATER
DROUGHT

FINANCIAL
GREED
MANY TERRIBLE OUTCOMES

Poverty
Starvation

War - Physical
Destruction

War - Human
Lives Lost

Urban
Decay

Industrial
Pollution

Extreme
Weather
EXISTENTIAL RISKS
CLIMATE
CHANGE
ECOSYSTEM
FAILURE
INEQUALITY
WEALTH
INEQUALITY
POVERTY
GLOBAL
WARFARE
BANK
FAIURE
ALL SORTS OF GOOD PEOPLE

Nuclear
Family
Indian family
South Asia
Arab Women
Middle East
Nelson Mandella
South Africa

Paul Polman
Unilever
Bill Gates
Gates Foundation
There are many good nice people everywhere on the planet. Everyone needs to have ways to better themselves and their families. People must also take responsibility to consume more efficiently so they do less damage to the environment.
AMAZING TECHNOLOGY
Rapid technological development over past 200 years ... and accelerating
MEDICAL SCIENCE MATERIALS

Genetic code / DNA

Antibiotics

3D Printing

Composite materials

Plastics

High strength steels
ELECTRONICS COMMUNICATIONS

IBM

Microsoft

Oracle
Apple
Print Media

Digital Media
SOCIAL MEDIA PASSENGER TRANSPORT

Google

Facebook

Twitter
Passenger Rail Passenger Car
Passenger Bus
FREIGHT / LOGISTICS AEROSPACE

Shanghai new port

Container Ships

Freight rail

Jet engines

Passenger Aircraft

Satellites
We should use technology to make it possible for people to have a better life. We have deployed technology to make the most financial wealth. It is time to use amazing technology to improve society and the environment and not just the profit.
  • Better metrics will help to solve these problems.
  • There is no one slver bullet that is going to solve all problems.
  • Better metrics along the lines of TrueValueMetrics
  • More accountability ... stronger, quicker!
Site Navigation
CONTEXT / ISSUES /POSSIBILITIES
SYSTEMIC FAILURES / HUNGER / POVERTY / HOPELESSNESS / DESTRUCTION
GOOD PEOPLE / AMAZING TECHNOLOGY / HUGE POSSIBILITIES
Open L07-CONTEXT-ISSUES-POSSIBILITIES
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#2 HOW THE WORLD WORKS
SOCIO-ENVIRO-ECONOMIC SYSTEM
GO TOP
IT'S A COMPLEX WORLD!
The system has been managed for the benefit of those who own financial capital. The result is catastrophic inequality and unsustainable depletion of natural capital and the degradation of the environment. Better metrics like TrueValueMetrics can be a gamechanger.
ALL THE CAPITALS ARE INVOLVED ... EVERYTHING IS INTERCONNECTED
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) change things for the better.
MONEY ... WRONG GOAL, WRONG METRIC, WRONG RESULT
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.
SOCIAL CAPITAL ... THE INDIVIDUAL AND THE FAMILY
STATE

CONSUME

CONTRIBUTE

People live their lives ... they make decision and consume to support quality of life ... and they contribute in many different ways
SOCIAL CAPITAL ... PEOPLE ENGAGE IN MANY WAYS
as INDIVIDUALS

in COMPANIES

in GOVERNMENT
PEOPLE are the ACTORS ... either on their own or within ORGANIZATIONS. It is people that make decisions and they have to be held accountable for the decisions they are making.
ECONOMIC CAPITAL ... PROFIT and PAYROLL
PROFITS

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.
PROCESSES HAVE MULTI-CAPITAL COSTS AND PRODUCE PRODUCTS
STEEL

SHIPPING ELECTRICITY Process improvement has been impressive for decades. Labor productivity is up substantially, but many processes are energy intensive and environmentally unsustainable.
PRODUCTS HAVE IMPACT AT ALL STAGES OF THEIR LIFE CYCLE
CARS

FOOD
CLOTHES
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.
PLACE IS WHERE LIFE IS LIVED ... WHERE EVERTHING HAPPENS
MAIN ST.
SERVICES RECREATION 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.
WASTE ... HUGE SOCIAL, ENVIRONMENTAL AND ECONOMIC COSTS
LANDFILL TRASH RECYCLE Waste contributes nothing to quality of life, but has social, environmental and economic costs. Reducing waste and the idea of circularity in the economy is a win-win-win and has started to grow. Much work still to do.
BETTER METRICS NEEDED ... TRUE VALUE ENHANCED ACCOUNTANCY

TrueValueMetrics builds on the powerful foundation of conventional financial accountancy. Accountancy's key concepts are used to account for the state, flows and impact for all activities and capitals.
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Site Navigation
How the Socio-Enviro-Economic system works
EVERYTHING CONNECTS TO EVERYTHING ELSE
Open L07-HOW-SEES-WORKS
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#3 SECTOR / PROCESS / IMPACT GO TOP
SECTOR ACTIVITIES and PROCESSES 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)
PRODUCTION ... SECTORS / INDUSTRIES / PROCESSES
MINING
PRODUCTION
LOGISTICS
Every sector, every industry, has become very specialized and over a long period of time has been optimized for profit performance. In the past, too little attention has been paid to social and environmental issues, and this must change.
FLOWS ... STREAMS / STRANDS / STRINGS
SUPPLY CHAIN
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.
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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Site Navigation
SECTOR / PROCESS / IMPACT
EFFICIENCY & EFFECTIVENESS OF ACTIVITIES IS ESSENTIAL
Open L07-SECTOR-PROCESS-IMPACT
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#4 STATE / ALL THE CAPITALS GO TOP
TAKE INTO ACCOUNT ALL THE CAPITALS
SOCIAL CAPITAL NATURAL CAPITAL ECONOMIC CAPITAL
SOCIAL CAPITAL
Individual

The basis for everything important ...
Family

The family an important part of the social structure
Community

The place factors into quality of life
(1) HUMAN CAPITAL
(2) RELATIONSHIP CAPITAL
(3) LOCATIONAL CAPITAL
NATURAL CAPITAL
LAND
RESOURCES
WATER
BIODIVERSITY
AIR
ECOSYSTEMS
(1) LAND
(2) WATER
(3) AIR
(4) RESOURCES
(5) BIODIVERSITY
(6) ECOSYSTEMS
ECONOMIC CAPITAL
FINANCIAL

Adding to wealth is dominant goal ...
PHYSICAL

Tangible physical structures ...
INTANGIBLE

Important elements for quality of life ...
(1) FINANCIAL CAPITAL
(2) PHYSICAL CAPITAL
(3) INTANGIBLE CAPITAL
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Site Navigation
STATE / ALL THE CAPITALS
NOT JUST THE FINANCIAL CAPITAL
Open L07-STATE-ALL-THE-CAPITALS
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#5 ACTORS / PEOPLE / ORGANIZATIONS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
GO TOP
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PEOPLE AT THE CENTER OF EVERYTHING
Good people everywhere ... but too many left behind
Bad folk not held accountable ... and a root cause of inequality
GOOD PEOPLE POWERFUL PEOPLE BAD PEOPLE
Indian family
South Asia
Arab Women
Middle East

Bill Gates
Microsoft

Carlos Slim
Grupo Carso

Idi Amin
Uganda

Muammar Gaddafi
Libya
Huge corporate organizations and governments dominate everything
But people run these organizations and make the decisions

Google

ExxonMobil

Rolls Royce

HSBC

Government

Security
  • There are a majority of good people, and some very good leaders;
  • Relatively few bad folk, but too many in positions of power and influence;
  • Too many ultra wealthy folk who have gamed the system in ways that are often legal but still wrong;
  • Most financial wealth has been extracted from society and nature in ways that cannot be sustained;
  • People ... everyone ... especially powerful people, must be held accountable.
Site Navigation
ACTORS / PEOPLE / ORGANIZATIONS
FOR DECISIONS ... RESPONSIBILITY ... ACCOUNTABILITY
Open L07-ACTORS-PEOPLE-ORGANIZATIONS
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#6 PRODUCTS / STUFF / CONSUMPTION GO TOP
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SUPPORT QUALITY OF LIFE / EARN PROFITS / PROVIDE JOBS

Vegetables

Meat

Housing

Clothes

Mobility

Recreation
  • 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
Site Navigation
PRODUCTS / STUFF / CONSUMPTION
SUPPORT QUALITY OF LIFE / EARN PROFITS / PROVIDE JOBS
Open L07-PRODUCTS-STUFF-CONSUMPTION
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#7 PLACE / COMMUNITIES / COUNTRIES GO TOP
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Place ... Where Life is Lived
Communities Cities Countries
  • Everything is needed in the place to enable Quality of Life
  • Everything is interconnected
  • Nothing important can be missing ... multi-sector is essential
Site Navigation
PLACE / COMMUNITIES / COUNTRIES
WHERE LIFE IS LIVED ... WHERE EVERYTHING COMES TOGETHER
Open L07-PLACE-COMMUNITIES-COUNTRIES
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#8 PEOPLE / QUALITY OF LIFE
THE MAIN GOAL SHOULD BE BETTER QUALITY OF LIFE
GO TOP
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The State of Society / Social Capital
Quality of life has improved over the past 200 years ...
but still far too many people left behind, and not being addressed
HUMAN CAPITAL RELATIONSHIP CAPITAL LOCATIONAL CAPITAL
Young Child

The basis for everything important ...
Grown Adult

... and enabling a positive contribution.
Family

The family an important part of the social structure
Community
... as well as good friends and community.
Place
Everything comes together in a place
Products

Goods and services accessible and affordable
  • Human Capital ... Reflecting quality of life at the individual level
  • Relationship Capital ... Modified and augmented by family, friends, connections
  • Locational Capital ,,, Modified also by the enabling aspects of the place
Site Navigation
PEOPLE / QUALITY OF LIFE
THE ESSENTIAL PURPOSE OF ALL ACTIVITY
Open L07-PEOPLE-QUALITY-OF-LIFE
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#9 NATURE / SOURCE OF ALL VALUE GO TOP
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Natural Capital / State of the Environment
LAND
WATER
AIR
RESOURCES
BIODIVERSITY
ECOSYSTEMS
  • 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.
Site Navigation
NATURE / SOURCE OF ALL VALUE
EVERYTHING DEPENDS ON NATURE
Open L07-NATURE-SOURCE-OF-ALL-VALUE
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#10 ECONOMY / MONEY / LIQUIDITY GO TOP
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FINANCIAL CAPITAL PHYSICAL CAPITAL INTANGIBLE CAPITAL
INVESTMENT BULLS BUILDINGS STEEL MFG. SECURITY CULTURE
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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
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Site Navigation
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
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#11 TRUE VALUE / DATA at the CENTER
YOU MANAGE WHAT YOU MEASURE
GO TOP
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
Data at the Center Measuring Progress 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
Site Navigation
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
TRUE VALUE METRICS
ENHANCED METRICS FOR BETTER PERFORMANCE AND ACCOUNTABILITY
Open L070-TVM
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#12 ABOUT / VISION / STRATEGY
ABOUT THE TVM INITIATIVE
GO TOP
Site Navigation
ABOUT / VISION / STRATEGY
ENHANCING ACCOUNTING TO IMPROVE SYSTEM PERFORMANCE
Open L07-ABOUT-VISION-STRATEGY
ABOUT TRUEVALUEMETRICS (TVM)
ESSENTIAL FOR SUCCESS
Open L070-TVM
ABOUT PETER BURGESS (TPB)
A LIFETIME OF EXPERIENTIAL LEARNING
Open L070-TPB-PETER-BURGESS
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EVENTS
Events for current year (2019)
Open L0200-EVENTS-2019
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L07-SITE-NAVIGATION
COMPLETE SITE NAVIGATION (no graphics)
Open L07-SITE-NAVIGATION
SN-CIP ...CONTEXT / ISSUES / POSSIBILITIES
UNDERSTANDING THE STARTING POINT ... WHERE WE ARE!
Open L070-SN-CIP
SN-SEES ...SOCIO-ENVIRO-ECONOMIC SYSTEM
ACTIVITIES / CAPITALS / ACTORS / PLACES / PRODUCTS and more
Open L070-SN-SEES
SN-MA ... MANAGEMENT ACCOUNTANCY
MANAGEMENT ACCOUNTANCY EMPOWERS BETTER MANAGEMENT
Open L070-SN-MA
SECTOR-VIEW
SECTORS / STREAMS / INDUSTRIES
Open L070-SN-SECTOR-VIEW
SN-TVM ...TRUE VALUE METRICS
ABOUT TVM, THE VISION AND THE STRATEGY
Open L070-SN-TVM
SN-TPB ...ABOUT PETER BURGESS
A LIFETIME OF EXPERIENTIAL LEARNING
Open L070-SN-TPB
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L07-DIAGRAMS-TEMP
Graphics collection / unsorted
Open L07-AAA-DIAGRAMS-TEMP
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WORK IN PROGRESS
Alternative version of Home Page in development
Open index-1902v6.php
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L0700-AA-180328-Section-00-Cover Open L0700-AA-180328-Section-00-Cover
L0700-AA-180328-Section-01-How-the-World-Works Open L0700-AA-180328-Section-01-How-the-World-Works
L0700-AA-180328-Section-02-State-All-the-Capitals Open L0700-AA-180328-Section-02-State-All-the-Capitals
L0700-AA-180328-Section-03-Flow-Activities-Actors-Perspectives Open L0700-AA-180328-Section-03-Flow-Activities-Actors-Perspectives
L0700-AA-180328-Section-04-Management-TrueValueMetrics Open L0700-AA-180328-Section-04-Management-TrueValueMetrics
L0700-AA-180328-Section-SN-Site-Navigation Open L0700-AA-180328-Section-SN-Site-Navigation
L0700-AA-Section-01-180328 Open L0700-AA-Section-01-180328
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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.
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