OVERVIEW
MANAGEMENT
PERFORMANCE
POSSIBILITIES
CAPITALS
ACTIVITIES
ACTORS
BURGESS
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TPD DRAFT
TVM MANAGEMENT METRICS A brief outline of the main elements (as of October 28th 2022) Original article: Peter Burgess COMMENTARY Peter Burgess | ||
TVM MANAGEMENT METRICS
PEOPLE ... FAMILY ... SOCIETY
HUMAN CAPITAL
IMPACT ON QUALITY OF LIFE
PROFIT ... ECONOMIC ... FINANCIAL ... MONEY
FINANCIAL CAPITAL
IMPACT OF FINANCIAL SECURITY AND WEALTH
PLANET ... ENVIRONMENT ... NATURE
NATURAL CAPITAL
IMPACT OF THE ENVIRONMENT
EXISTING FINANCIAL MANAGEMENT METRICS
PROFIT AN LOSS ACCOUNT
INCOME ... EXPENSES ... RESULTING PROFIT
BALANCE SHEET
CURRENT ASSETS ... CURRENT LIABILITIES
TOTAL ASSETS ... TOTAL LIABILITIES ... RESULTING OWNERS' EQUITY
VALUING MONEY
There was a time when money was a piece of paper
There was a time when that piece of paper represented an amount of gold in a vault, The shrorthand for this is the 'gold standard'.
Gold was valuable because it was scarce, it didn't corrode and these characteristics were widely understood.
One of the functions of money is that it is a 'medium of exchange'
Another function attributed to money is that it is a 'store of value'
THE FUNCTION OF EXCHANGE
More than anything else a functioning economy is one where exchange enables goods and services are able to flow smoothly to an equilibrium where both parties are getting the maximum of value.
BARTER is an exchange where one product or service is exchanged by one party with another party for another product or service. It is inconvenient and clumsy and difficult to implement.
By introducing monay as an intermediary step it is possible for exchange to be significantly more efficient and easy to use. Money may take many different forms. The important characteristic is that they maintain their 'value' over time ... at any rate the time between the sell transaction and a subsequent buy transaction.
STORE OF VALUE
The idea that 'money' is a store of value is more myth than reality. There is no modern money that has kept its value over time ... the norm is always that the money is debased and is worth less and less over time ... where worth is the buying power of the money.
WEALTH
Wealth is ownership of stuff.
Wealth is widely used as a measure of 'success' in the modern world, but this measure is flawed in many ways. One such flaw is the idea that more and more wealth delivers happiness and quality of life when in reality it can be hard work and lots of headaches to manage and preserve wealth.
QUALITY OF LIFE
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