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True Value Metrics (TVM)
Meaningful Metrics for a Smart Society
TM
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TM
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A General Theory of AccountabilityTM
TRUE VALUE ACCOUNTING
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Accounting for Everything ... Multi Dimension ... Multi Perspective ... Every Issue
Metrics for Everything that Really Matters
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WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WOULD BE OF HUGE VALUE!
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METRICS REALLY MATTER
BUT THE METRICS MUST BE THE RIGHT ONES
GDP / Corporate Profits / Stock Markets are insufficient
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OVERVIEW-HISTORY
L070-OVERVIEW-HISTORY-0/1/2/3/4/9
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Open L070-OVERVIEW-HISTORY-0
Open L070-OVERVIEW-HISTORY-1
Open L070-OVERVIEW-HISTORY-2
Open L070-OVERVIEW-HISTORY-3
Open L070-OVERVIEW-HISTORY-4
Open L070-OVERVIEW-HISTORY-9
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POVERTY
About BRAC
Percentage in poverty is reducing, but more than 500 million people still live in EXTREME poverty
CREATING A LADDER OUT OF EXTREME POVERTY IN THE PAST TWENTY YEARS, WE HAVE SEEN A STRIKING DECLINE IN HUMAN SUFFERING.
The number of people living in extreme poverty — on less than $1.90 per day — has been cut in half in just two decades. The poorest people are climbing out of poverty, emboldened and equipped to overcome their circumstances with access to vaccines, knowledge about safe pregnancies, improved nutrition, and better quality education.
BUT WITH 900 MILLION PEOPLE STILL LIVING IN EXTREME POVERTY – WITHOUT ACCESS TO ANY OF THESE SERVICES – WE HAVE A RENEWED MANDATE TO REACH THEM BY 2030.
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Open L070I-POVERTY
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QUALITY-STANDARDS
L070-QUALITY-STANDARDS
There are hundreds, if not thousands, of different standards that are being used to 'certify' different aspects of the performance of the global supply chains.
This webpage lists several hundred of these standards.
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Open L070-QUALITY-STANDARDS
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HUMAN CAPITAL / PROGRESS OF PEOPLE
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PEOPLE / QUALITY OF LIFE (PQL)
THE MAIN PURPOSE OF EVERYTHING IS TO IMPROVE QUALITY OF LIFE ... FOR EVERYONE
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Human Capital / Babies / Families / Healthy Food
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THE MAIN PURPOSE OF EVERYTHING IN A FULLY FUNCTIONING SOCIO-ENVIRO-ECONOMIC SYSTEM IS FOR THE QUALITY OF LIFE OF PEOPLE TO BE OPTIMIZED
This idea was behind the thinking of Adam Smith as the field of economics was emerging, but lost over time because of an assumption that when people had more money then they would have a better quality of life. This assumption is only partly true, and getting less and less true as technology enables productivity and changes in the sstructure of the system
... Much more about the interrelationship between demographics, quality of life and economic performance.
... Much more about the impact of people on the environment, and what to do about it.
... Much more about the importance of the family, the society and the community
QUALITY OF LIFE ... satisfying basic needs and enjoying life in all its complexities
COST OF LIVING ... there are costs associated with basic needs and all the other things to have a fun filled life
CONTRIBUTION ... there are a thousand and one different ways in which people can contribute
COST OF LIVING COMPONENTS
... FOOD
... WATER
... SHELTER
... CLOTHING / STUFF
... ACCESS TO OTHER SERVICES like retail stores, gas stations, healthcare, childcare, eldercare, education, roads / transport, utilities, public safety, etc is an important factor in the STATE of the POPULATION
... ACCESS TO EMPLOYMENT - I and jobs are important in quality of life and the ability to pay for essential needs and other things needed for quality of life.
... ACCESS TO CULTURE / RELIGION / RECREATION
... ACCESS TO SOCIAL SAFETY NET
POTENTIAL TO CONTRIBUTE
... PARENTING and other family oriented care-giving is a valuable part of QUALITY OF LIFE
... ACCESS TO EMPLOYMENT - II provides an organizational setting for people to CONTRIBUTE and to be paid for it
... PRO-BONO VOLUNTEERING is another way to make CONTRIBUTION.
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(5) NATURE - NATURAL SYSTEMS and RESOURCES
THE NATURAL ECONOMY / PLANET / SUN ... EVERYTHING DEPENDS ON NATURAL RESOURCES AND NATURAL SYSTEMS
Planet Earth / Water / Trees / Climate instability / Resource depletion
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Planet Earth / Water / Trees / Climate instability / Resource depletion
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EVERYTHING IS ENABLED BY AND CONSTRAINED BY NATURE. ... In modern times, all sorts of People Built Systems (PBS) have been created to convert natural capital into financial capital. Over the past 200 years there have been enormous changes in the technology available to create financial capital, and people have used increasingly sophisticated management metrics to optimize for profit performance and financial wealth creation. At the same time, the impact of human activities that create financial wealth on nature and all its natural systems have been ignored.
NATURAL SYSTEMS ... NATURAL CYCLES, ECOSYSTEM SERVICES, CLIMATE SYSTEMS
BIO-DIVERSITY / NATURE'S RESILIENCE ... FAUNA AND FLORA ... MILLIONS OF SPECIES ... MANY UNKNOWN
LAND ... USED FOR BIO SERVICES, HABITAT, AGRICULTURE, FORESTRY, BUILDING DEVELOPMENT, ETC.
WATER ... USED FOR HUMAN CONSUMPTION, INDUSTRY, AGRICULTURE AND NATURAL SYSTEMS
AIR ... ESSENTIAL FOR LIFE SUPPORT, BUT BEING USED AS A DUMP FOR GASEOUS WASTES
NATURAL RESOURCES / ENERGY
FOSSIL FUELS, FUELWOOD, WIND AND SOLAR
NATURAL RESOURCES / MINERALS / RAW MATERIALS
MINERALS, TIMBER, BIO-DIVERSITY
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CC - FINANCIAL CAPITAL
A COMPONENT OF CREATED CAPITAL / PEOPLE BUILT SYSTEMS AND STRUCTURES (PBSS)
FINANCIAL WEALTH IS THE DOMINANT MEASURE OF CORPORATE AND PERSONAL SUCCESS ... GIVING QUESTIONABLE OUTCOMES
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FINANCIAL CAPITAL
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UNIT OF MEASURE ... MONEY
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MEDIUM OF EXCHANGE ... MONEY
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PERSONAL WEALTH
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CORPORATE VALUE
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FINANCIAL TRANSACTIONS
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CAPITAL MARKETS
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BANKING AND FINANCIAL SECTOR SYSTEMS
Commercial Banks
Investment Banks
Central Banks
Development Banks
SWIFT
Banking regulation
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ECONOMIC PERFORMANCE / GDP
GDP is a measure that sends all the wrong signals about economic performance in any mature economy ... though there is a strong correlation between GDP and quality of life in poor developing economies. After the 1970s GDP has proved to be a bad proxy for quality of life in rich mature economies like the United States and Canada, many countries in Europe and Japan.
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MOVE THIS TO METRICS / ECONOMIC
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MONEY
MONEY is an inadequate metric ... it changes in size over time.
GDP
MEASURING THE PERFORMANCE OF THE NATIONAL ECONOMY
GDP measures consumption more than anything else. There is a weak correlation between quality of life and GDP ... better measures are possible.
MEASURING THE PERFORMANCE OF A CORPORATE ORGANIZATION
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Open MAIN-NAV-#5
Open L0700-PBS-FC-Finance-Investment
Open L0700-PBS-FC-FINANCIAL-CAPITAL
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(6) PBS - INTANGIBLE CAPITAL
A COMPONENT OF PEOPLE BUILT SYSTEMS AND STRUCTURES (PBSS)
INTANGIBLE CAPITAL HAS BECOME A KEY DRIVER OF INCREASED MONEY WEALTH OVER THE PAST FIFTY YEARS ... BUT NOT WELL UNDERSTOOD
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L0700-PBS-IC-INTANGIBLE-CAPITAL
L0700-PBS-IC-Financial-Goodwill
L0700-PBS-IC-Government
L0700-PBS-IC-Institutional-Capital
L0700-PBS-IC-Knowledge-Capital
L0700-PBS-IC-Technology
Research and development results in knowledge, and know-how and intellectual property (IP) all of which has a cost, but also has a potential to contribute to better performance in the future.
Most of the R&D investment has gone towards building knowledge that will enable investors to make more profit, much less has gone to making the world a better place by improving society and improving the burden on the environment.
In one very big way technology has enabled improvements in productivity. To the extent that improvements in productivity make it possible to make the products we need to support our quality of life using less people, productivity means that there will be less employment and lower wages. In the past when there was a shortage of labor, more productivity reaulted in a better standard of living, but in richer mature societies more productivity gives additional opportunity for companies to make their products with less workers and lower payroll.
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Open MAIN-NAV-#5
Open L0700-PBS-IC-INTANGIBLE-CAPITAL
Open L0700-PBS-IC-Financial-Goodwill
Open L0700-PBS-IC-Government
Open L0700-PBS-IC-Institutional-Capital
Open L0700-PBS-IC-Knowledge-Capital
Open L0700-PBS-IC-Technology
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(6) CC - PHYSICAL ECONOMY
A COMPONENT OF PEOPLE BUILT SYSTEMS AND STRUCTURES (PBSS)
PHYSICAL CAPITAL HAS BECOME ENORMOUSLY POWERFUL AND A CRITICAL ENABLER OF PRODUCTIVITY
GDP / Corporate Profits / Stock Markets
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PHYSICAL CAPITAL
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L0700-PBS-PC-PHYSICAL-CAPITAL
L0700-PBS-PC-PHYSICAL-CAPITAL
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Open L0700-PBS-PC-PHYSICAL-CAPITAL
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INFRASTRUCTURE
L0700-PBS-PC-INFRASTRUCTURE
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Open L0700-PBS-PC-INFRASTRUCTURE
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BUILDINGS
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ROADS AND BRIDGES
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RAIL
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WATER AND SEWER
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ENERGY
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COMMUNICATIONS
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SEAPORTS
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AIRPORTS
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VEHICLES
Vehicles have made mobility of people and product possible, and enabled globalization
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PROCESSES
PRODUCTION / PROCESS / PLANT AND EQUIPMENT
Production and process efficiency must be one of the key drivers of sustainable progress
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L0700-PBS-PC-PROCESSES
L0700-PBS-PC-PROCESSES
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Open L0700-PBS-PC-PROCESSES
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Indusrial Plant / Buildings / Vehicles / Bridges / Rail / Water / Ports /
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STRUCTURES, SYSTEMS, PHYSICAL ASSETS - PUBLIC SECTOR AND PRIVATE SECTOR / TECHNOLOGY, MACHINERY, PRODUCTS, PROCESSES, VEHICLES, INFRASTRUCTURE
The physical segment of People Built Systems (PBS) has been deployed mainly to convert natural capital into financial capital without taking into consideration the impact productivity and wealth cration is having on people and the environment. When these issues are taken into consideration the performance of much of the physical plant and equipment is much diminished.
INFRASTRUCTURE
... BUILDINGS
... ROADS AND BRIDGES
... RAIL
... WATER AND SEWER
... ENERGY
... COMMUNICATIONS
... SEAPORTS
... AIRPORTS
PRODUCTION / PROCESS / PLANT AND EQUIPMENT
Production and process efficiency must be one of the key drivers of sustainable progress
VEHICLES
Vehicles have made mobility of people and product possible, and enabled globalization
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Open MAIN-NAV-#5
Open L0700-PBS-PC-INFRASTRUCTURE
Open L0700-PBS-PC-PHYSICAL-CAPITAL
Open L0700-PBS-PC-PROCESSES
Open L0700-PBS-PC-PRODUCTS
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PLACE
GDP / Corporate Profits / Stock Markets
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SECTOR / STREAMS
GDP / Corporate Profits / Stock Markets
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MIDA - MISC
GDP / Corporate Profits / Stock Markets
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ENVIRONMENTAL ACCOUNTING
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ENVIRONMENTAL ACCOUNTING
There are many pieces for Environmental Accounting, but they do not fit together into a coherent framework as they need to.
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ENVIRONMENTAL METRICS - AT THE AUSTRALIAN NATIONAL LEVEL
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Civil war / Genocide / Hunger / Poverty / Homelessness / Devastation
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(1) ISSUES / SYSTEMIC DYSFUNCTION
OVERVIEW / THE ARC OF HISTORY
LOTS TO LEARN FROM HISTORY AND WHAT IT MEANS FOR THE PRESENT AND THE FUTURE
Even though there has been amazing technological progress, almost everyone seems to be disappointed with the way the world works because in large part, the world does not work very well.
THOUSANDS OF ISSUES ... A MULTITUDE OF ISSUES NEED TO BE ADDRESSED ... SYSTEM DYSFUNCTION NEEDS SYSTEM SOLUTIONS (11)
SYSTEMIC DYSFUNCTION OF A COMPLEX SYSTEM ... AMAZING KNOWLEDGE AND TECHNOLOGY BUT UNSATISFACTORY PROGRESS AND PERFORMANCE
THE COMPLETE SYSTEM ... NOT SIMPLY PROFIT AND WEALTH ACCUMULATION ... PEOPLE, NATURE AND PEOPLE BUILT SYSTEMS AND STRUCTURES
WRONG METRICS ... METRICS ARE POWERFUL, BUT BEING USED MAINLY FOR THE BENEFIT OF A VERY FEW ... Many of the aggregate measures of performance show improvement over time, but the diaaggregation of of these measures show that a few people have done very well while most people have not.
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Open MAIN-NAV#OVERVIEW
Open MAIN-NAV-#ISSUES
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Good people / Thinkers / Possibiities
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(2) IDEAS / THINKERS / POSSIBILITIES
IDEAS / THINKERS / POSSIBILITIES
IDEAS ... HUNDREDS OF IDEAS ... BUT NOT MANY GET THE TRACTION NEEDED TO MAKE A DIFFERENCE
There is more knowledge, there are more ideas, there are more thinkers, there are huge possibilities, but even with all of this there is rather little progress compared to what is needed and what is possible. Something important is missing, and part of this is the lack of a system of performance measurement that embraces everything that matters. With the right metrics, it will be easier to move from 'talk' to 'walk'!
THINKERS
PUTTING IDEAS INTO PRACTICE ... BUT VERY FEW ACHIEVE THE SCALE THAT NEEDED TO MAKE A SIGNIFICANT DIFFERENCE
POSSIBILITIES AND CRITICAL CONSTRAINTS
PUTTING IDEAS INTO PRACTICE ... BUT VERY FEW ACHIEVE THE SCALE THAT NEEDED TO MAKE A SIGNIFICANT DIFFERENCE
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Open MAIN-NAV-#2
Open L0200-IDEAS
Open L0200-THINKERS
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GO #IDEAS
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(8) PEOPLE BUILT - INTANGIBLE CAPITAL
GETTING BIGGER AND MORE IMPORTANT ... BUT NOT IN EVERY WAY!
KEY DRIVER OF A BETTER WORLD ... but not always in ways that are beneficial to society as a whole, nor to the efficient functioning of the socio-enviro-economic system. Some parts of intangible capital are of real value to society, and some are constructs that make wealth seem to be much bigger than it really is. Intangible capital may be related to financial capital, but it may also be the driver of progess towards a better quality of life.
FINANCIAL CAPITAL ... INTANGIBLES / GOODWILL
REPUTATIONAL CAPITAL ... BRAND / TRUST
KNOWLEDGE CAPITAL ... SCIENTIFIC / TECHNICAL / SOCIETAL
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Open MAIN-NAV-#8
Open L0700-PBS-IC-INTANGIBLE-CAPITAL
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PLACE - WHERE PEOPLE LIVE THEIR LIVES / WHERE EVERYTHING HAPPENS
Everything happens in PLACE, it is where people live and work and play, and, it is where economic activity consumes resources, degrades the environment and produces products that a needed and wanted by people.
PLACE DETERMINES THE QUALITY OF LIFE FOR PEOPLE ... it is about PEOPLE, that is, family and friends, community, society ... it is about what NATURAL CAPITAL offers ... and it is about the PEOPLE BUILT STRUCTURES and SYSTEMS
PLACE IS WHERE NATURAL CAPITAL IS DEGRADED, whether it is degradation of the land, water pollution, air pollution, resource exploitation or greenhouse gases.
PLACE IS WHERE PEOPLE BUILT STRUCTURES are located, structures with financial value, personal utility AND an environmental cost.
THE STATE OF A PLACE ... THOUSANDS OF ELEMENTS THAT GO INTO VALUING (NUMBERING) THE STATE OF THE PLACE
PROGRESS OF THE PLACE ... HOW MUCH HAS STATE IMPROVED IN A GIVEN AMOUNT OF TIME.
PERFORMANCE OF THE PLACE ... WHAT RESOURCES WERE CONSUMED TO ACHIEVE THIS PROGRESS
PROBLEMS AND CONSTRAINTS / POSSIBILITIES ... Everywhere is different, and the best way to get high performance progress is to remove a constraint that makes it possible for everything else to work better.
MANY VARIANTS OF PLACE ... from planetary scale to a person's home
Home / neighborhood / block / community / village / town / city / region / state / country
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Open MAIN-NAV#PLACE
Open L0700-PL-PLACE
Open L0200-PLACE
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GO #PLACE
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PRODUCT - Goods and services that are needed to support QUALITY OF LIFE
Everything
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PROCESSES - a foundation for an efficient socio-enviro-economic system
Everything
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ORGANIZATIONS - a critical component of the socio-enviro-economic system that enables efficiency
Everything
(11) ORGANIZATION / ORGANIZATIONS
ESSENTIAL TO GETTING ANYTHING DONE
ORGANIZATION ... A framework for efficiency
ORGANIZATIONS ... Many different ways to organize ... different approaches ... different stakeholders ... different ownership ... but essential for performance efficiency
INITIATIVES ... THE FIRST STEP IN GETTING FROM AN IDEA TO IMPLEMENTATION AT SCALE ... PUTTING IDEAS INTO PRACTICE ... BUT VERY FEW ACHIEVE THE SCALE THAT NEEDED TO MAKE A SIGNIFICANT DIFFERENCE
PRIVATE SECTOR ORGANIZATIONS ... THE BEST CONTRIBUTE SIGNIFICANTLY TO QUALITY OF LIFE ... THE WORST DO IMMENSE DAMAGE TO SOCIETY AND THE ENVIRONMENT
PUBLIC SECTOR ORGANIZATIONS ... EFFICIENT FOR MONEY CAPITAL FORMATION BUT NOT SO MUCH FOR SOCIETY AND ENVIRONMENT
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MainNav
Open MAIN-NAV-#11
Open L070-ORGANIZATION-ORGANIZATIONS
GO #INITIATIVES
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SlideNav
GO #OCN
GO #INITIATIVES
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YOU ONLY MANAGE WHAT YOU MEASURE
TRUE VALUE ACCOUNTING is a key piece of systemic improvement that is needed to help make the world a better place. Management experts know that you manage what you measure and TRUE VALUE ACCOUNTING is a way to measure and acount for all the important things that are key to making for a better quality of life and a less degraded environment. Conventional accounting is a powerful system to manage for profit performance, but does too little for impact on society and impact on the environment.
TRUE VALUE ACCOUNTING ... ENHANCED ACCOUNTING THAT EMBRACES EVERYTHING THAT REALLY MATTERS INCLUDING QUALITY OF LIFE AND THE ENVIRONMENT
KEY CONCEPTS ... THE POWER OF CONVENTIONAL ACCOUNTING
VERY POWERFUL / GOOD FOR PROFITS AND WEALTH ... HAS WORKED FOR HUNDREDS OF YEARS
TRUE VALUE ACCOUNTING ... WHY? HOW? WHAT?
YOU MANAGE WHAT YOU MEASURE ... THEREFORE MEASURE WHAT MATTERS (1)
CORE CONCEPTS
DOUBLE ENTRY MONEY ACCOUNTING ... ENGINEERING EFFICIENCY ... THERMODYNAMIC PRINCIPLES
MULTI PERSPECTIVE
MULTI-DIMENSION / MULTI PERSPECTIVE
CONVENTIONAL ACCOUNTING
POWERFUL / GOOD FOR PROFITS AND WEALTH ... IGNORES IMPACT ON SOCIETY AND THE ENVIRONMENT
MEASUREMENT REALLY MATTERS
YOU ONLY MANAGE WHAT YOU MEASURE
THERE ARE MEASURES FOR FINANCIAL PERFORMANCE ... these measures are very powerful. They are the foundation for management decision making in every well managed company, but they are only about money and profit.
OWNERS HAVE DONE VERY WELL ... WORKERS HAVE NOT ... this problem has been getting worse and worse for a long time and is not being addressed by policy makers.
INTANGIBLE CAPITAL ... GETTING BIGGER AND BIGGER ... KEY DRIVER OF A BETTER WORLD
FINANCIAL CAPITAL, THE ENABLER OF ECONOMIC GROWTH AND WEALTH CREATION
but increasingly a tool for wealth extraction that does damage to society and ignores damage to the environment and planetary boundaries. Financial capital is a critical lubricant for the functioning of the socio-enviro-economic system but is neither the fuel nor the engine of the system
THE NATURE OF MONEY ... not working as a store of wealth, nor a good measure of system performance.
BANKING AND FINANCIAL SERVICES ... an important service but never an end in itself.
THE WORKINGS OF MARKETS ... effective, but only when there is market efficiency.
MERGERS AND ACQUISITIONS / CONCENTRATION OF POWER ... dangerous when too much concentration of economic power.
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Open MAIN-NAV-#3
Open L0700-TVA-OVERVIEW
Open L0700-TVA-CORE-CONCEPTS
Open MAIN-NAV-#7
Open L0700-PBS-FC-FINANCIAL-CAPITAL
Open MAIN-NAV-#7
Open L0700-PBS-FC-FINANCIAL-CAPITAL
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GO #OVERVIEW
GO #WHW
GO #CONCEPTS
GO #VIEWS
GO #FC
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ABOUT PETER BURGESS
MOST EVERYTHING ABOUT PETER BURGESS (TPB)
Bio Background / Draft Manuscripts / Essays / Blogs / Connections / Experience and lessons learned
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Open n1-Burgess
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GO #TPB presentation
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Reset to zero January 20, 2015
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TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends. TVM is a 'big idea' that has the potential to be a game changer. The goal is for it to remain an open access initiative.
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WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
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A MODEST DONATION WILL HELP MAKE THAT HAPPEN
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The information on this website may only be used for socio-enviro-economic performance analysis, personal information, education and limited low profit purposes
Copyright © 2005-2021 Peter Burgess. All rights reserved.
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