The Basic Concepts of True Value Metrics
Chapter 8 ... Using True Value Metrics

8-3 Establishing Standard Values

Building the Standard Value Database

Standard Value is a Key Element

Many people need to engage with this

Everyone has a different perspective about value and value quantification … an important characteristic that is respected in the TVM approach to value and value quantification.

TVM uses a standard value database. This is a list of things that have value and data about how these items have been assigned quantitative value. TVM keeps value quantification separate from money quantification in order to emphasize that money and value are two totally different concepts or measurement although in some ways related and sometimes overlapping. In certain specific situations it is possible to use money as a proxy for value … but this may not be used generally.

TVM works with multiple sets of standard values reflecting location and culture. Each community has its own profile … usually only one, but it may be more than one. Each country has a value profile … usually one, but there may be more than one. There is a global profile, an average of every part of the world. There are five separate sets: (1) the individual may have their own set; (2) another set specifically for a community; (3) another set that is an average for the nation; and, (4) finally a global average.

An individual will default to the location they are identified with … but this should be modified to reflect personal views … and this in turn will update the community profile.

Building the standards

It will take time for every item of value to be quantified. The time it takes will be reduced by having a large number of people engaging with the process which is quite simple:

1. List as many items as you want
2. Set one of the items to 100
3. Set all the others to have a value relative to the first 100 value item you picked.