Date: 2024-10-04 Page is: DBtxt003.php L0900-TVM-management-framework-01a
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TVM Principles of Management
The TVM Management Framework |
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• Peter Drucker famously said you manage what you measure;
• At TVM, we argue that you had better measure all the right things; • For decades it is only financial performance that has been measured; • The modern world is profitable ... but otherwise very dysfunctional; • Better metrics are essential. Better metrics will help! |
| WHAT IS PROGRESS? PROGRESS IS IMPROVEMENT IN STATE. | ||
Steady State |
Progress |
Backsliding |
| Progress can be measured without knowing anything about activities. Simply measure 'state' at the beginning and end of the period. Progress is improvement in state! | ||
| CONVENTIONAL FINANCIAL METRICS | FULL SCOPE TVM METRICS | ||||
GDP GROWTH
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CORPORATE PROFITS
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STOCK PRICES
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SOCIO
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ENVIRO
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ECONOMIC
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| These are embedded in TVM's ECONOMIC metrics | For the complete Socio-Enviro-Economic System | ||||
| TVM ENHANCES CONVENTIONAL ACCOUNTANCY | ||
| Conventional Accountancy | TVM Enhanced Accountancy | Full Scope TrueValueMetrics |
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• Conventional Accountancy: Very powerful ... used throughout the corporate world;
• TVM Enhanced Accountancy: Simply adds in social and evnironmental dimensions; • Full Scope TrueValueMetrics: Applies the TVM concepts for ALL activities and actors. | ||