MEASURE Sustainability or Well-Being or ... and combine it with GDP
Multiple disruptive forces—the rapid pace of technological change and its potential contribution to inequality chief among them—pose critical challenges to governments around the world. It is more important than ever for governments to develop and implement strategies that take that disruption into account and aim to improve the lives of citizens.
Boston Consulting Group’s Sustainable Economic Development Assessment (SEDA) can be a powerful tool in this effort. BCG created SEDA in 2012 to track the relative well-being of a country’s citizens and to provide insight into how well a country converts its wealth into well-being. (See “A Yardstick for Well-Being.”) The development of SEDA was a response to the growing consensus that gross domestic product (GDP) is a limited metric for assessing a country’s performance; the tool built on the work of prominent economists and international organizations to broaden the lens beyond economic indicators.
This chart shows the 25 Global Powerhouses - GDP on the left and population on the right side.
It is however difficult to combine this two information in a one and only number to get a ranking.
Using a vector based metric and visualization helps to get a clear view about their state and future development (see below).
Shows whole picture for faster interpretation, optimization and sustainable decision making.
One of the components is an enhanced metric system that allows to visualize the relationships of several measures (objective, subjective) for different object as vektors. It's much more convenient to get the essence of any audit (with correlations) and to get the message forward.
For more basics and applications go to Measuring Performance in a Knowledge Economy
This chart combines GDP with Population of ten Powerhouses (mentioned above).
Anyone who looks at this picture has the same impression of the performance and risks this Powerhouses face. It helps to to find a common understanding for their strategy and estimating the risk.
Try it yourself: Download Excel here.
The 'Business Engineering System' is a professionally developed next Generation MindWare for the design of smart social systems (R&D > CHF 6 Mio.).
It is a proprietary system with registered copyright. And it's free for private use. Professional use (consulting, teaching, programming) requires an appropriate license which helps us in financing the development (basics, applications and platform). Ask for options.
Purpose of 'Project NEMO' (New/Next Economic Model) is to enhance classic economics by
(i) including intangible assets as the common source of welfare and wealth and
(ii) disclosing a vector based value enabling monetary AND nonmonetary as a compound/hybrid measure.