# Understanding Value {% hint style="warning" %} This section is incomplete and work in progress. Please proceed with caution. {% endhint %} > Status games are multiplayer, zero-sum, hierarchical, judged socially.\ > Get grades, applause, titles now - emptiness later.\ > \ > Wealth games are single player, positive-sum, internal, judged by nature/markets.\ > \- [source](https://twitter.com/naval/status/1267179384886095873) of thought ### Wealth Games Wealth is ownership of assets that others seek and hence, 'value'. Competence, State of mind, and Energy are self-accessible and universally available assets. \ \ Money is only a denomination (of wealth) and useless by itself. 1. Its **purpose** comes from what it can get done. That is, transform itself into. 2. Its **existence** comes from value creation. \ Money is a consequence. Value is the appropriate target. The simple way to increase value is to be useful. {% embed url="" %} ### Unlocking Value Success requires coordinated competence across multiple stakeholders, translated into output. Value is created by positively impacting output. There are 3 ways to increase output: 1. **Free up (higher value) throughput**\ Take responsibility of a part of the system that is currently the responsibility of an L3+ individual. Thus, freeing their mind and affording the system access to their additional throughput.\ \ Responsibility is earned through demonstrated competence of the same outcome. \ \ This is popular at L1 and L2 and unlocks linear gains.
2. **Increase throughput**\ Transform the system (not individuals) into a higher throughput state using (system and incentive) design. Efficacy of a coordination network is a perpetual problem.\ \ Helpful watch: [Mechanism Design 101 | Sam Williams](https://www.youtube.com/watch?v=gCFlGLbI_kE)\ \ This is popular at L3 and unlocks quadratic gains.
3. **Discover throughput**\ Be able to see, new pots of gold and their execution into output. \ \ This is popular at L4 and unlocks exponential gains. ### ### Measuring Value Attributing specific value to individual output in any multi-stakeholder system where 1+1=11, is a non-trivial problem. Yet, inconsequential. \ The real problem is individuals lacking visibility of how (and which of) their actions translate into output. And hence, are valuable. [Ascend Framework](https://docs.google.com/spreadsheets/d/18VyIU74VTjJ9m1lkchmo_aAn5KN3GkpSpjbOH_QiZGM/edit?via_commande=true#gid=882172859) is the model we use for this problem. With an easy mapping of business output to [individual competence benchmarks](https://docs.google.com/spreadsheets/d/18VyIU74VTjJ9m1lkchmo_aAn5KN3GkpSpjbOH_QiZGM/edit?via_commande=true#gid=461665169), denominated in actual $ value.\ \ The system has been designed to be simple enough that: 1. Anyone at any time is able to self-measure the value of their current output. 2. Exactly know the distance to their next ascend. Ascend occurs in run-time. ### Setting goals is not a strategy Ascend level-based outputs exist to help self-measure and hence, afford [agency](https://en.wikipedia.org/wiki/Agency_\(philosophy\)). Nothing more. Do not confuse a goal with strategy. Building relevant competence may be a strategy. ### Extension of this thought {% content-ref url="output" %} [output](https://playbook.thevantageproject.com/executing/alpha/output) {% endcontent-ref %} {% content-ref url="asking-the-right-question" %} [asking-the-right-question](https://playbook.thevantageproject.com/executing/alpha/asking-the-right-question) {% endcontent-ref %} ### Todo for your mind In a world filled with violence and its consequent victimhood, accruing value without taking from others (including the system) is a non-obvious idea. It will take non-trivial effort to truly see. Do consider [Understanding Truth](https://playbook.thevantageproject.com/foundation/understanding-truth) and [Limits of Engagement](https://playbook.thevantageproject.com/foundation/limits-of-engagement) sections again.
### Scribbles: #### Understanding Business Value {% embed url="" %} {% embed url="" %} \