Have you ever wondered why there cannot be another way of measuring a company’s impact apart from profitability?
Well, you are not alone. You are just one of the many people around the world who believe in better ways of measuring a company’s performance. You might have scratched your head about how that positive vibe about a company can be converted into real value, and probably gave up along the way. Folks at top UK and US universities have also been giving a thought to the issue. Just when you think there is no hope, here comes Seratio. If you think it’s another virtual currency, you are not quite far off the mark. Short for the social earnings ratio, serat.io measures the social rather than financial impact of organizations.
In 2011, Olinga Ta’eed together with other financial experts were keen on finding a way of measuring financial impact vis-à-vis real social impact. What started as a university collaboration in the UK was later to become CCEG, and by 2013, it was said to have been the most adopted metric across the world. The Centre for Citizenship and Governance (CCEG) was essentially formed to act as a standards body for the new currency and help curate it.
How Popular Is Seratio?
So popular was the idea that there were 37,500 CCEG members by 2015, among them notable sustainability leaders. What’s more, Seratio is now in the league of the Price Earnings ratio, having been granted full registration rights by the UK Intellectual Property Office due to having acquired “a distinctive character.”
If you are wondering about measuring your personal value, seratio is where you need to look. It was pre-launched in 2015 at the World Yacht Race and is targeting 1 million users. You might want to note that the first lady Cherie Blair was present during the launch, among other prominent personalities such as Rt Hon Peter Hain, footballer Gianluigi Buffon, and the Desmond Tutu Foundation. Now a fully-fledged organization, seratio is now managed by Barbara Mellish.
How Exactly Do You Measure Personal Value?
Converting sentiment to financial value seems farfetched, the stuff for day dreamers, but it’s fast becoming a reality with seratio. Think about your value as a citizen, in the family, community, company, and so many other levels. What is your influence in each of these?
Seratio is just the tool you are looking for with its sophisticated academic tools from the top universities around the world for analyzing financial value. As a rule, negative actions such as slavery are not measured by seratio. S/E, as it is otherwise known, is the currency of intangible values we all aspire to.
Some of the interdependencies in the metric include concepts such as time dependency, where value changes with time, distance, multiplier effects, and tracking movements. Some of the metrics the system takes into account include freedom, independence, art, relationship, equalities, capital, and welfare.
We can only compare S/E to other social impact tools if we are to treat it fairly. The rise of S/E has been so meteoric that in 2014, Lord Loomba included it in his Social Impact Analysis report presented to the House of Lords.
Seratio Platform Verdict
S/E has been lauded as having a powerful set of metrics capable of helping funders and founders assess value and strategic risk.
The disadvantage with social impact tools like S/E is that it works with too many assumptions. A simpler tool with fewer assumptions would be desirable if it is to be reliable.