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Beyond Branding is written by members of The Medinge Group

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January 20, 2006

The Peoples Economics:5 Vital Clues of Leadership wherever Century 21 Sustains Investment in Local Societies & Global Markets 

CEO Scott McNally, Sun Micro, says in a current article of Fast Company magazine: the measures that matter most to us are those are our customers use. He has identified one of the most important clues of marketing. Economists who have been looking forward over the last 30 years to 21st C markets would today add the following clues for any intangibles rich –or human relationship networked – corporation including those where brand leadership architectures are the major investment asset because they determine what future trust permissions the company has strategically, as well as how sustainably its future is compounding value around Unique Organising Purpose. These economists connected discussions that started from leadership roundtables hosted in many countries around the survey Entrepreneurial Revolution (The Economist, Norman Macrae, 1976)

Clue 2 is: and do we know if we are serving customers who are best for the future vision local societies would most want our global market sector to innovate

Clue 3 integrates up to 9 other measures (4 (V2-V5) flowing in tandem to (V1) valuing customer demands, and 5 (K1-K5) representing what economists and measurement psychologists know about productive sub-systems of the people relationships of service and networking transparency of actions and learning). It is ultimately up to a corporate governance team to decide whether all 10 coordinates are needed. For example, if you are in machine age market sector where people’s service and learning has no value, then you will not need all 10 coordinates. If you business is not networked in any way, then you will not need all 10 coordinates. This is all quite simple – not at all complex – if you have tracked the 5 main preneurial revolutions which have evolved together since 1976 as the gravitational dynamics of the local and global economies of markets has changed.

V1 – measures our customers use (& are they our best customers for the future)
V2 – measures our most competent employees use (& ditto)
V3 – measures our owners use (& ditto)
V4 – measures our leadership team uses in progressing our vision for the future of the global market sector whose future history we can govern
V5 – measures societies use to ensure our sector is not in conflict with sustainability of life systems and natural resources including local environmental connections with the globe
K1 – what makes the lifelong learning and action curves of individuals most productive over time
K2 - what makes groups of people most productive over time: particularly in the cross-disciplinary group form that is most valuable to our organisational design be this teams, networks, practice communities, etc
K3 – what makes our organisational system most productive over time
K4 – what makes our business web of partners most able to realise our optimal envisioned global sector productivity over time
K5 – what makes local societies who make a major reciprocal investment in our global sector most sustainable growing over time

Clue 4 is that these 10 coordinates compound a tense/elastic human relations systems whose emerging possibilities of conflict need to be audited ahead of time so they can be transparently resolved before they compound erosion of relationships and goodwill destruction. This future-back auditing is context specific and needs to be done with as much attention and as frequently as any other measurements and rewards leaders systemise organisation-wide.

Clue 5 is that the integral corporate governance system needed in the 21st is not the one that any of the professional semi-monopolies separated as their own business case in the late 20th century. Separately, each of their maths (or laws) is perfect for compounding destruction of the future exponentials of value multiplication that all 10 coordinates are interdependent on. Quite simply our future value ~ K1*K2*K3*K4*K5*V1*V2*V3*V4*V5 where each coordinate can be indexed from 0 to 1 (averagely healthy elasticity) to above 1 (sustainably compounding growth). Why is it simplest for leadership teams to model connectivity around value multiplication. Well suppose you let the value that local society measures in you slump to 0 as Arthur Andersen did, then however many billions of value are connected by the other 9 coordinates : billions*0=0 Since publications on Unseen wealth were issued in 2000 by a committee chaired at Brookings and Georgetown Law School, over 100 multibillion dollar corporations have been reduced to 0 or less than 5% of the integral value that their Unique Purpose was worth by the wrong risk analysis assumed by accountings tradition of separation. Billions+0 and Billions*0 do not lead to the same value! Tragically the accounting standard for brand valuation introduced in the late 1980s is riddled with this mathematical error and is a primary cause of most brands death we have witnessed since this false mathematics of intangibles was spreadsheeted around global markets.

You can search for other CEOs and opinion leaders who lead critical perspectives of this transformation in economics. The Chairman of Cisco talks of interactions being vital to the partnership strategies his leadership team visions and stewards. The Chairmen of Whitbread and of interface provide compelling testimonies o]n the value of human life that societies bring to the table of sustainability investment. The founder of Fast Company talks about identifying how the marketing company that compounds the most value in any sector connects the best choice of customers and their knowledge of what society will most want in the future. Preneurial economist can provide many cases of investors in a generation receiving 100 times their initial stake but only if even more value has been returned to societies through the same compound exponential of sector goodwill. Future Historians including my father since 1984 and today's best selling leadership author Thomas Friedman now make it clear that national economics is no longer a separate game from the economics of global sectors that a place is most transparently connecting. Unless we learn from what are now the mathematical errors of separation embedded in 20th Century economics, we will not network 6 billion beings together in a way that empowers people’s productive potentials to make a difference in the way that Bill Clinton, Mary Robinson and others concerned with transparent globalisation are openly raising around leadership responsibilities to peoples’ futures. This is clear in this 1984 storyboard timeline to 2010 and beyond which I co-authored. If you side with us in cross-cultoral demands to sustain humanity, why not help contribute 1 project to the 30000 being openly catalogued and transparently mapped here. Or join our blog co-editors in representing the best interests of places your family love most at Club of Village, City, Country, or World.

Other primary references:
Intangibles-Valuation can help you certify what corporate governance your region values most.
You can look at Entrepreneurial Scripts that have emerged since 1976 and open source their impacts
You can contribute transformational sightings to the monthly death of distance innovation feeds we openly syndicate
across weblogs
If you have a reason for caring about the future exponential of a particular worldwide sector including the geographic one of global villages, we can introduce you to other networkers who wish to collaborate in stewarding sustainability of that context around the world
If you feel that your profession needs to understand the above content as well as leading members of Beyond Branding, we welcome open exchanges between disciplines

Chris Macrae, (include 007 in subject if you need my fastest response)
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