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TrueValueMetrics
ACTION INFORMATION FOR ALL OF SOCIETY
Metrics about the State, Progress and Performance of the Economy and Society
Metrics about Impact on People, Place, Planet and Profit
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'TrueValueMetrics' is being drafted into book form to help people better to understand TrueValueMetrics (TVM) and the way it works. The separate chapters of the book may be downloaded as PDF files. The individual sections of each chapter may be viewed as separate webpages.
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Chapter 1
INTRODUCTION
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This chapter answers some key questions. Why is this book being written? What does the writer hope to achieve? It is time to make changes. It is time to do things differently so that there is sustainable progress. It is time for a paradigm shift. These are important issues ... this book is a starting point.
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Chapter 2
SYSTEMIC DYSFUNCTION
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This chapter suggest how it is that a world with so much potential delivers so little and at such a huge cost in terms of human misery and environmental degradation. This is not the way things need to be, there is systemic dysfunction.
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Chapter 3
THERE ARE WAYS FORWARD
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There are ways forward ... not one, but many. A single silver bullet is not the right approach ... rather there needs to be a use of resources that gets the most value for the society as possible. The way forward has several main components: more meaningful development data and metrics, a focus on community scale initiatives
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Chapter 4
MORE MEANINGFUL METRICS
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This chapter is about metrics, and how the way the game is scored will change the way the game is played ... in this case, the game is life itself. Nothing could be more important.
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Chapter 5
ACCOUNTING'S KEY CONCEPTS
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This chapter describes the key concepts of accountancy and how these may be applied for people, place and planet as well as for profit.
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Chapter 6
STATE, PROGRESS AND PERFORMANCE
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This chapter explains the connections between state, progress and performance, how they are similar to the core business accounting idea of balance sheet and profit and loss account
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Chapter 7
MONEY PROFIT VERSUS VALUADD
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This chapter goes into more detail about the key differences between Money Profit Accountancy and Valuadd Accountancy (True Value Impact Accounting - TVIA). Some of this difference is due to the way the 'reporting boundary' is defined and how this changes perception of performance.
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Chapter 8
ABOUT DATA
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This chapter is about data, all its characteristics and attributes. Data has to be at the center of everything, but the data have to be about fact and reality and not merely a screen created by the rich and powerful.
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Chapter 9
ABOUT DATAFLOWS
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This chapter is about dataflows, where data come from and where they must go.
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Chapter 10
ELEMENTS OF ANALYSIS
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This chapter is about the ways analysis may be done including a valuadd component as well as money profit. It shows how the basic money accounting framework is used and how the perspective of people, place and planet changes the measured outcomes.
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Chapter 11
ANALYSIS BY REPORTING ENTITY
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This chapter describes how the focus of analysis influences the conclusions. In achieving better quality of life, impact on people, place and planet is as important as profit for the organization and its investors.
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Chapter 12
THEMATIC ANALYSIS
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This chapter describes how the focus of analysis influences the conclusions. In achieving better quality of life, all the thematic issues should be looked at not only for their immediate performance, but also taking into account the broader impact on people, place and planet.
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Chapter 13
SECTOR PERSPECTIVE
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The sector perspective is useful because it is here that there are technical experts who have an understanding of what is possible within the sector. The history of 'silo' analysis must be avoided in order to have the sector performance enhance the overall socio-economic performance of society.
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Chapter 14
HUMAN RESOURCE CENTRIC ANALYSIS
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Resources are both money and material AND human resources. This second section includes human resources, knowledge and know-how, and social impact capital,
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Chapter 17
KNOWLEDGE
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Knowledge is one of the most powerful drivers of achievement. Unfortunately, knowledge has the power to be a driver towards 'bad' outcomes as well as 'good' outcomes. An oft-cited example is the emergence of both the atomic bomb and atomic power during the 1940s.
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Chapter 18
PLACE CENTRIC ANALYSIS
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This chapter describes how the focus of analysis influences the conclusions. In achieving better quality of life, impact on people, place and planet is as important as profit for the organization and its investors.
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Chapter 19
PLANET LEVEL ANALYSIS
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The PLANET is the ultimate constraint. While it is very big compared to an individual human being, it is finite in size and its capacity to support almost 8 billion individual human beings and their material requirements is clearly being stressed in ways that have never happened in all of history.
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Chapter 20
NATIONAL LEVEL ANALYSIS
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This chapter describes how the focus of analysis may legitimately influence the reported conclusions. In achieving better quality of life, impact in the aggregate summarized at the national level may be significantly different for all aspects of progress and performance for people, place and planet at the national level than it is when the focus is on progress and performance of the various entities that make up the totality of the nation.
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Chapter 20 - NATIONAL LEVEL ANALYSIS
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Chapter 24
FINANCIAL FOCUS ANALYSIS
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This chapter describes how the money and finance have enabled progress of technology, industry and quality of life in the past few hundred years, and especially since the industrial revolution.
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Chapter 22
INFRASTRUCTURE, PLANT & EQUIPMENT
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This chapter describes the role that human built infrastructure, plant and equipment has played in enabling industrial productivity and quality of life ion the modern world.and its investors.
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Chapter 23
FOCUS ON NATURAL RESOURCES
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This chapter describes natural resources ... one of the three components of the total socio-enviro-economic system. Without natural resources, the system cannot work. During the last several decades it has become increasingly apparent that natural resources are finite and limited and need to be used efficiently and recognising that there are not unlimited supplies.
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Chapter 24
INSTITUTIONAL PERSPECTIVE
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What is the enabling environment? It is a lot more than just governance and government, the law and regulation? It is also the infrastructure and the social services like health and education, and the financial services. The enabling environment may also be a major constraint on the socio-economic progress of the community. What is the underlying productivity of the community. If the community is surplus producing it can go forward and improve its quality of life ... otherwise it cannot. The concept is simple ... and explains the endemic economic and development failure that is pervasive on the planet.
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Chapter 25
USING THE TVM FRAMEWORK
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This chapter is about developing and deploying a new system of metrics. For some readers this may be the only chapter they bother with … so it aims to be practical while having enough of the
driving concept of TVM Value Accountancy embedded in the practical guidance.
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ANNEX 1
About People
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This chapter is a primer on how TVM can be used by anyone anywhere. For some readers this may be the only chapter they bother with … so it aims to be practical while having enough of the driving concept of TVM embedded in the practical guidance.
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ANNEX 2
ANNEX 2 ... Some Examples of Value Chains
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This section includes some examples of value chains
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ANNEX 3
Some Examples of Purpose
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This section includes some examples of purpose from different types of economic activity
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ANNEX 4
Some Examples of Cost Behavior
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This section includes some examples of cost behavior from a diverse range of sectors
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ANNEX 5
Some Examples of Reports
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This section contains material to help with the development of reports for different segments of society and the economy. There are common elements, but also some key items that are specific to different situations.
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