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October 27, 2005

Why the world’s largest organisations are devaluing the 21st C and what all people need to change to be sustainable 2 of 3 

What is systemically different about 21st C and 20th Valuation?
In the 20th C industrial economy, machines (tangibles) scaled mass production’s valuation.
In the 21st C of service economy and global/local learning activated by knowledge workers, people relationships systemise what grows ore decays.

21st C Organisation is about systems of productive and demanding relationships spinning around context/purpose. (If you feel like it, please help us co-edit emerging implications of value exchnage molecular theory : generally for valuing democracy here, specifically for sustaining poorest Third of World here- remember badwill whether waved thru networks by birdflu, hurricanes or terror means we the people are all on the same exponential arc of globalisation let alone Noah's )

While global accountants are in denial about this:
They become masters of untruth and unfairness, and as Ackoff explains when professionals stick to a decaying system instead of bridging to the new one, the harder they try to be perfect in the old way the more damage they do. In particular, they divorce leaders at the top of big organisations from having true information to make the riskiest decisions.

This applies to all forms of largest organisations on earth from global corporations to national governments. Please suspend left versus right judgement. Instead, why not review whether your national leader's recent train of decison-making has helped or hindered the most risky situations your citizens have found systemised around them. For example in Britain, our Mr Blair is a most brilliant media manipulator, unfortunately this is precisely what we don’t need the more true information needs distributing for all the people to work with. Londoners did not need 7/7 while he was hosting Gleneagles. Britains did not need the BBC muzzled while B&B wargamed. if Mr Blair tries through peeked pride or Murdoch to pollute the BBC's licence (and 50 billion pound investment in world service by the British people) he will need to be impeached. But otherwise we all forgive him, its the system that's gone so terrifyingly wrong not the man's intended people missions. He is as far as we can see a good man gasping for clean air in a polluted badwill system of globalsiation that all peoples including our royals and our religious ones must help him turn round.

It is not Tony's fault, all his decisions at the top of power are being spun by the old system instead of the new. This fable is being simultaneously replayed in our connected world through an estimated 90% and rising of the world's 1000 largest organsaitional idnetities. Devaluing the 21st C's integrity as sustainability as you read this.

What I am saying does not come as a future shock to people I have networking with for 20 years. Below are 3 snapshots explanations from the last 2 decades on the Why of Going Global. We invite you to debate them. Like reformed corporation plunderer
Ray Anderson, I'd prefer not to have spend the rest of my life trying to help people resolve conflicts because our organsiational systems do not value life as much of the time as they do taking money from the world. But there's another issue that up to you. Whether as part of the democratic majority you stick with being valued by machines or elect to enjoy simulataneously transforming to systems that transparently value the trust-flow of people relationships.
1985 Just finished co-authoring a book with one of the two people I know to have championed the revolutionaruy change from industrial to post-industrial – my father at The Economist, and Peter Drucker. Our book on DoD timelined the 2 opposite endgames that will be hard-wired into globalisation and networks by 2024. And it forecast 2005-2010 as the 5 years when the peoples of the world made the decisions that ultimately spun the 21st C's sustainability. To be or not to be...
1995 Having researched hundreds of industry markets across 25 countries in the 1980s, I was alarmed by the vested professional interests who circa 1988 stole how brand valuation was done to be all about image-spinning and nothing about reality-making. I spent the first 5 years of the 90s at Coopers & Lybrand arguing for changes to intangibles accounting. It was like being flogged by a dead horse. Accountants passport to going global was to retain their monopoly of measurement not to admit that it needed to morph into a new system:
that value epeople instead of machines as investment
that connected instead of separated
that valued every systemic component of human value including safety of life itself not just externalisation of monetisation
that mapped deep contexts instead of hiding behind standard rules (whose setting in stone beggared change and made unique organising purposes could have been simple for knowledge workers to flow charters around emotionally conflicted and complex)
2000 Economists and lawyers at Brookings interviewed the 2 sides: the tangible accounting monopolists and the open intangibles crisis mappers. The accountans were forced to co-sign that even by their static mathematical projections they were no longer helping leaders govern the majority of how future value develops. In dynamic terms, the measurements used by people atop our largest organsiations are wholly blind to 90% of value multiplication and the risks that will engulf us. We have 5 years to overthrow the measurement slavery of 20th C tangible value chains if the economic networks who have been modelling this since 1984 continue to be as accurate in mapping how systems spin as they have been so far.

What can I do about this (if you are right) I hear you shout. One heck of a lot if we citizens and netizens start exploring the next post collaboratively. For example, bloggers haven't begun to open source their html around the biggest local questions worldwide networeks could be brainstrusting, as well as acting on in time instead of days to late as in pakistan this month, New Orleans last month, London July -how blaired are our visions when democratic leaders are looking backwards instead of looking forwards to what The System is already compounding.

Chris Macrae World Class Brands Networks (since 1991)
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