The traditional model used to manage a business is based on the paradigm of the General Ledger and the calculation of Net Earnings for the stockholder. All decision making is based on the predicted effect the outcomes will have on earnings and the attendant stock price. This model has several serious shortcomings:
Ignores crucial non-monetary factors such as quality and customer satisfaction. Transactions and data only enter the system when monetary values can be assigned.
Serious Lags exists making the paradigm better at autopsies than dynamic management.
Values are subject to arbitrary allocations related to reporting requirements.
System depends on values based on currencies valued in the past.
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