TVM TRAINING
MANAGING in the 21st CENTURY
MANAGING FOR A BETTER WORLD ... TRIPLE BOTTOM LINE and ALL THE CAPITALS
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MANAGING FOR A BETTER WORLD
In very many ways, the world is a better place than it was a hundred years ago, or indeed, better than it has ever been. But that is not to say that it is any way near as good as it ought to be, given the amazing knowledge that presently exists. One of the biggest single reasons for this delta between what could and shhould be and what is, is that the main systems of management are no longer fit for purpose. The Triple Bottom Line was described by John Elkington in 1993. There are powerful metrics for profit, but effective metrics for people and planet have not been clearly articulated within mainstream management circles. Worse, while there is more and more collection of data, far too little attention has been paid to changes in state. While there has been an aggregate growth in financial or economic capital, it has come at the expense of social capital and natural capital, neither of which are accounted for effectively.
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SOME BASIC CONCEPTS
TrueValueMetrics (TVM) draws on basic concepts from science and accountancy that have been used for a very long time. Accountancy is the underlying structure upon which modern corporate management information systems are based, and is very powerful, but limited only to the financial dimension of performance. The basic idea of TVM is that the same framework that is used for financial performance of an entity may also be used as the foundational framework of accounting for everything.
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PROBLEMS
On average there has been economic success as measured by GDP growth and stock market prices, but when it comes to the health and happiness of everyone, the results are poor. For almost half a century there has been growing inequality, and nothing done to address the problem. At the same time, there has been low investment on critical infrastrucuture in much of the world (not China) and massive depletion of national resources and degradation of the environment. The accumulated greenhouse gasses (GHGs) in the atmosphere have reached a critical level and the climate changes predicted several decades ago are now doing a significant amount of damage. The metrics need to be upgraded to improve the decisions that get made.
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POSSIBILITIES
Modern knowledge is impressive, but the disconnect between what is possible and what is actually done is a problem that must be addressed. This is the job of leaders who must manage effectively. Many areas of science are science are progressing rapidly and the possibilities are endless. Biology and medical science is one of the fast moving areas, as is materials science and computer science. There is the possibility that this amazing knowledge can be used to make the world a better place, but there is also the possibility that this knowledge can be used for bad purposes. The systems of governance required to manage what is possible and control evil intent is dangerously out-dated.
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GLOBAL GOALS
Goals are a step in the right direction ... but only a small step and only one of very many. Talk about 'goals' rarely does very much to 'move the needle' ... but talk is better than complete silence.
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COUNTRY LEVEL PROGRESS AND PERFORMANCE
Data about country level progress and performance has been compiled for many years by the OECD, the World Bank and others. This is interesting, but not enough to optimize the progress and performance of all the actors in the socio-enviro-economic system. Specifically, it works quite well for very large entities, but not well at all for the small entity, the family and the individual.
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PROGRESS AND PERFORMANCE OF THE GLOBAL COMPANY
Many global companies are bigger and more powerful or influential than countries. Such companies are also responsible for most of the world's trade, production of most goods and services, most employment, as well as use or resources and sources of pollution. As goes these companies, so goes the world.
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PROGRESS AND PERFORMANCE OF LOCAL COMPANIES
Smaller local companies have an important role to play in society. Frequently they are at a disadvantage relative to glboal companies that have international leverage
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PROGRESS AND PERFORMANCE OF SMALL BUSINESS
Small business
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COST, PRICE AND VALUE OF PRODUCTS AND SERVICES
Products and services are the lifeblood of both society and the economy. Products and services are the foundation for quality of life, the raison d'etre for corporate organizations and trade while at the same time being the root cause of resource depletrion and environmental degradation. Products and services flow through the socio-enviro-economic system having multiple complex impacts all the while.
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THE IMPORTANCE OF PLACE
People live their lives in a place. The place has an outsize influence on the quality of life of the people who live in the place.
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THE IMPORTANCE OF THE INDIVIDUAL
Respect for the individual is important. The socio-enviro-economic system works are its best when an individual's quality of life is improving. Every individual on the planet should be experiencing an improvement in their quality of life. Making this happen should be the most important goal of leadership and all of those with power and influence.
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THE IMPORTANCE OF COMMUNITY
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THE IMPORTANCE OF PRODUCTION TECHNOLOGY
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