THE MAGNIFICENT METRIC
Creating value for all
Adding value is the oldest activity known to man.
It is also the most powerful business principle.
It is behind all positive transformation
It is the source of wealth
It measures contribution
It measures reward
It links contribution and reward
It drives all contributory behaviour
It is the base of GDP, the nation's wealth
It is the source of profits, wages and taxes
It affects all company measurements
Back to our roots
Adding value or creating wealth is the core of the CONTRIBUTION ACCOUNTING METHODOLOGY© or CAM. It is based on the Contribution Account (an adaptation of the conventional Value-added-statement) which is the only inclusive stakeholder accounting measurement directly linked to behaviour. This is translated into five strategic pillars in maximum wealth creation and optimal wealth distribution.
The mystery of the value-added measurement’s neglect in organisational theory is explained only by our obsession with wealth distribution — with reward being the driver of contribution and not the other way around.
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