Often, the prevailing apocalyptic mood raises issues such as “the time we have left” and “transformation speed.” Are we aware of the fact that we are spinning at some 1,000 mph? The Earth, that is. And this does vary according to latitude. Not to mention the speed at which we earth-dwellers circle around the sun. That’s a whopping 67,000 mph! Let’s try to visualize these facts. We can only be marveled and mesmerized at the fact that everything seems so safe. We can realize the slow speed at which we as humans move. We are cozy in our squalor; we seem to have reached a dead end and even decorated it. The comfort zone is apparent. How can enterprises improve and become more successful? In addition, corporate development must be triggered and transformation processes initiated. With methodology, structure, and audacity. Value Balance raises issues that are perhaps also latent. It fosters a sort of awakening of new awareness. This will have an impact on enterprises, the economy, and society.
Value Balance is a novel system for comprehensive accounting and balancing
Using enhanced methods, a traditional balance sheet is enhanced around social, ecological, sustainable, and cultural factors. This is obtained with actual bookings, not with reporting. Formulating which values play roles for an enterprise becomes particularly significant. The first question is to determine which these values are. Second, if these values reflect on the balance sheet, and third, to determine if they also acquire monetary value. Let us analyze some 120 values of interest in the Western world. What is interesting is that there are innumerable values that leverage added value considerably, but they have not been recognized on the balance sheet. We intend to change this by appreciating values and by bringing them to the attention of the enterprise. This equates to a journey to the land of values. Engaging with one or more values could result in effects which inherently add value for the enterprise. At the core, the question is how to measure a value.
Transparency and Clarity
This also increases clarity in corporate processes and decision-making. Tracing and assessing the effects of corporate decisions in the future is also useful. An ordinary balance sheet and basic points of view are thus complemented and taken to the next level. Systematic taxonomy prevents overlooking the fact that values and their onset are crucial for every enterprise.
Uncharted Territory for Enterprises
Enterprises that implement value balance aggressively demonstrate their capabilities and performance in these aspects (social, cultural, environmental, and sustainable). Research is still needed to determine whether implementing Value Balance as a corporate accounting standard will influence the development of a national economy. In the long term, Value Balance will fundamentally change company and employee behaviors. This is also because different factors require more attention in enterprises and need initial efforts conductive toward regular work on these factors and on Value Balance. This will lead to increases in corporate value, but also to its loss. One thing is certain: Value Balance will reflect the economic conditions more realistically and provide insights into the corporate reality.
Analyzing Value Added Processes
The macroeconomic foundation of Value Balance understands only who contemplates the big picture and who recognizes the core process. Added value belongs here, too: precisely what value origin is about. Audacity and drive are required to venture into the practically unknown land of values and their effects on the entrepreneurial genius. This way, accounting and balancing come alive and can bring joy. This is because the insights of the journey are actually included on the balance sheet. In the end, a qualitatively observable Value Balance emerges. Employees, customers, vendors, perhaps even tax officials and others so inclined, will gladly read about it in the future. What has been accomplished generates enthusiasm. Also when new things were discovered through collaborative inspection. Using the Value Balance system will result potentially in new values and, in any case, in awareness of them. Here, effect accounting also helps as an inherent part of Value Balance. It focuses on the future.
Here, effect accounting also helps: an inherent part of Value Balance. It focuses on the future. Of course, things and processes that previously received little attention, and were hardly addressed, are revealed. Well then, let’s get on with these. We want to contribute to improve the enterprise, and the world.