Almost every decision on this planet, every day is influenced on the basis of accounting. But accounting is only focussed on money… and only gives us a historical rear-view-mirror outlook to influence our decisions.
Emerging research proves – and explains that people are making consistently better decisions with better information – and the research shows us a pathway to consistently measure “account-for” what people really value.
But if we are going to upgrade our accounting we have to know what accounting is. So… what is accounting? I used to struggle with this question. “How can I explain accounting, how it works, where it applies, and everything it influences in two simple paragraphs? It can’t be done”.
I can now define accounting in five words.
Accounting is “Data Quality Management – for Money”.
Accounting does not make decisions. It is a system to provide consistent, reliable, comprehensive information for everyone to be able to make their own independent decisions on the basis of money.
Emerging practices of Governance of Value Creation (think of it like financial governance) gives us “Data Quality Management – for Value into the Future”.
It allows us to understand, and build, a system to provide consistent, reliable, comprehensive, future oriented, multi-outcome contextualized information for everyone to be able to make better decisions that are influenced by, and aligned on the basis of future value – in our own organisations – and around the world.