The Next Economic Paradigm

Tag: power

The Rango Prophesy

When I asked my friend and highly respected Seattle consultant Joe Brewer for advice, he simply says:

“Tell an Epic Story”

Rango is a hapless Chameleon in a classic “fish out of water” tale and unlikely hero who finds himself in a “Dust Bowl” meets “Spaghetti Western” hardship scenario. His only preparation is an active imagination and a lot of luck.

All of the characters are similarly encrusted desert animals doomed to a life of subservience to a central banker in an economy where water is the currency of trade.

The Mayor of the town first appears as an almost spiritual leader who provides his flock with hope that their suffering will soon be relieved on the day when water flows again from the shrine of the Holy Spigot.   The analogy to modern religion is hard to miss.

When Rango arrives and accidentally stumbles upon an act of valor, he is anointed sheriff of the town.  Meanwhile, the mayor is, in fact, the person causing the hardship by secretly constraining the supply of the water so that he can buy up all of the failed farms for commercial real estate development.

Upon providing guidance to the new sheriff, the mayor inadvertently slips that proverbial libertarian battle cry  “whoever controls the water (currency) controls the people.”   This sparks suspicion in Rango, who then ventures off on an adventure with some of the town folk to find out what is happening to the water.

After plenty of twists, turns, predators, mistakes, and a whole lot of ironic/comical symbolism, Rango and his gang finally learn that the mayor simply shut off the valve tapping the Las Vegan water main.  Once Rango’s gang opens the tap, water becomes abundant again and the protagonists meet their appropriate demise (suitable for young viewers).

The metaphor for the real world is a no brainer, for most reading this blog anyway.  Bankers artificially control the currency tumbling communities into bankruptcy, unemployment, and despair.  Meanwhile politicians, corporate interests, and legislators conspire to offer fasle hope to the wallowing masses as each person, one by one, hands over their fortunes and freedoms to the powerful elite.

Of course the plan is foiled when a group of brave citizens form alliances with their previous adversaries acting in unison toward a common goal.  It then becomes readily apparent that an “abundance” of productive currency, such as water, is precisely the solution to ridding desert society of crime and corruption thereby enabling peace for all – not the other way around.

This is the story that I want to tell.

There is a very simple task at hand – find the main line and open the valve.  Human knowledge, like water is constrained behind artificial barriers called “intangible” asset accounting.  To build an accounting system that makes knowledge assets “tangible” will open the floodgates of the most valuable currency civilization has ever known.  Not surprisingly, the protagonists will meet their appropriate demise –  suitable for young viewers, of course.

 

 

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Lead By Getting Out Of The Way

By giving people power and observing what they do with it, a leader can learn a great deal about available opportunities.  The problem is in getting out of their way, and consequently, getting out of your own way.

Human capital refers to the set of skills and knowledge that can produce an economic value.  Everyone has distinct combinations of social capital, creative capital, and intellectual capital, which they deploy uniquely. The entrepreneurial spirit in indomitable.

Likewise, the education, experience, and abilities that people deploy to their communities, employers, social organizations, and for the economy as a whole, are hugely valuable; unless you try to contain them – then they become volatile.  So, no matter how proud you are of your own accomplishments, it’s probably not a good idea to get in the way of others’.

As we build out the Travel Tribe Leader functionality, we do not attempt to model the community leader after ourselves or any archetype, instead, we seek to model Social Flights around the human capital of the community that the leader represents.

Then, Lead by Observing

As we develop Social Flights, we listen to a great diversity of ideas from our extraordinary Board of Advisors.   The hardest part for some of us on the executive management team is to stay out of the way as these brilliant people tear away at our own creations, preconceptions, biases, and even our hopes and fears for the outcome of our work.  This is not easy to watch yourself getting in you own way.

We give our advisory board the power to criticize us.  We give them the power to change us.  We give them the power to hurt us and we give them the power to make us better.  We watch, and we learn and we are grateful to them because we will give that power to travel tribes.  This set’s up a very powerful incentive to play The Value Game.

A Game of Derivatives

On of the biggest complaints of the gamefication movement is that people will always figure out how to game the game.  by contrast, at social Flights, we intend for the players to game the game.  This is the fundamental backdrop of The Value Game. – it’s a game of derivatives not unlike many types of financial derivatives, except in an alternate currency.

This does not mean that we’ll fly blind and vulnerable.  It means that the value of Social Flights will be a direct reflection of the value that people create in communities organizing themselves around Social Flights.  This is a different type of business method and a stark contrast to the way that market capitalism holds people in boxes, surveys their private information, and places roadblock in their path trying to influence there every turn.

Try that with your battleship.

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Can Twitter Fuel a Run On Banks?

The Ingenesist Project is retained by corporate clients because we look at the world through a different set of filters. We are looking for possible disruptions on the horizon as far in advance as possible so that our clients can be aware of potential perils and modify their business plans accordingly.

One of our signature assertions is that Money is merely a social agreement – not a federal mandate of a democratic government. People will trade whatever currency they agree to trade. Increasingly, people, empowered by social media can impact the financial system far more that a bunch of Quants peddling CDOs.

People simply do not know how powerful they are.

Suppose someone puts together a Twitter/Facebook campaign for everyone the withdraw their money from a single financial institution who just handed out big bonuses? At best, those bonuses will have to be recalled to keep the doors open. At worst, people will find an alternate currency to store the “value” that is destroyed by a bank run. Virtual Currency? Admittedly, it’s far-out, but we need to keep our eyes on these trends because once started, they move very very fast. That’s why they call it a “Run”

Is this scenario really possible? Read on…..

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Why Are Leaders Failing?

People look for leaders that inspire them to achieve innovative breakthroughs. People trust, or so we think, CEO’s to effectively lead their organizations so that employees can continue to get paid.

The confidence in leadership is waning and a new “leadership” is emerging. The new leadership is from and by the people. The reason for a shift in leadership is as follows:

1. Politicians have failed us with self interest and politics as usual. Usual no longer works for the people

2. CEO’s and management have failed to listen to the markets of conversations

3. Greed is out, efficiency is in and the old market is not adapt at “lean, mean and fast”

4. The people has lost trust in media, politicians and old management schemes

5. Advertising and marketing methods of the past are dead. 96% of the online ads get no responses. A rate of 3% at best is the return on direct mail, coupons and broadcast ads.

6. The market is no longer listening to the old market rather the market is listening to the people

7. People have been empowered and engaged to create their own markets and they follow a new kind of market leader. A leader who enables them to learn, grow and share with others whom have an affinity to their interest and beliefs.

8. New leaders are now  conversing with their own audience and there are many of them.  There are also a few leaders who are enabling many to engage, converse and build our own audience.

9. Conversations have never been so fluid, so reaching and so powerful.  The irony is that the power of speech has always been and will always be disruptive. History proves it so but we are in an era of making history that reinvents itself daily from the conversations.

10. Old leaders either adapt very quickly or die. The old game is over and the longer you try and play it the more it will cost the market, your investors and the people whom supply the market with commerce, the people.

Admit It, You are Out of Touch And Blinded By The Past

For politicians and corporate leaders the downfall of your empires is directly related to markets changing and you denying the change. If you haven’t noticed markets are now transparent. There is nothing you do that the market won’t notice and freely comment on, good, bad and indifferent. When you do good the market with follow you. When you do bad or do the same thing the market will leave you. Unless you recognize this shift your dead in the water.

Time is your enemy and denial is your your deathbed.  Being dead in the water means the next wave will topple your boat because its force is too big, too large and you can’t move fast enough to navigate around or over it.

Then again you may simply not have time or attention to even recognize that it just may be true and real.  In that case, move over for the new leader to replace you sooner than later.  Leaders are failing because they fail to change and fail to listen. Sorry for being so frank but I don’t have time to be politically correct. Get it?

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Change You Can Bank on

The Earth changes – it always has and it always will.  The most interesting thing about Earth is not rock, it is rate of change of rock. Yet it is this rate of change in rock that created oceans, continents and geographical features.  The rate of change in the landscape is what created and affects all humanity; global warming not withstanding.

In fact, the rate at which things change is the root of all financial deals, social interactions, creative discovery, intellectual pursuit, even criminal activity.  All value is created and destroyed in response to the rate at which something changes.  Since change is relative to time, the rate of change is something, like death, and taxes, that you can bank on.

Money, Knowledge, and Power

As a corollary; the ability to measure rates of change in things is the ability to measure value.  The ability to cause rates of change is the ability to create or destroy value.  It is therefore in our interest to try and express our world in terms of rates of change.  For example:

1    Money, interest, and stock price are deeply related.  Therefore, the rate of change of money is related to interest.  The rate of change of interest is related to growth rate.  The change in growth is monetized through a public market for its stock.  Stock price affects money and the cycle continues.

2    Information, knowledge and innovation are deeply related.  Therefore, the rate of change of information is related to knowledge.  The rate of change of knowledge is related to innovation.  Innovation creates new information.  And, the cycle continues

3    Attention, attraction, affinity, audience, and action are deeply related to each other.  Therefore the rate of change of attention is related to attraction.  The rate of change of attraction is related to affinity, etc., until finally, the rate of change in action gets everyone’s attention.  And the cycle continues.

Achilles’ Octopus

There are a few problems however.  If you remove, corrupt, or disengage any of the components, the cycle fails.  To complicate matters further, our three examples are also related: money, knowledge, and audience; stock price, information, and action; etc.

Points of failure can occur at any part of the cycle and it is often difficult to identify which failure caused what effect.   Does a stock price fail because the public lost affinity or because information was corrupted?  Does an economy fail because there is no money to invest in innovation or because our society outsources its knowledge economy?  Does a school system fail to deliver the right knowledge to society because the stock market failed or because there is no public action?

Social Media and the next paradigm of economic development

Social media allows us to express the dynamics of our world in real time and at great speed.  Feedback loops are shorter and cause and effect can be more easily differentiated.  The data that will be generated through the integration of social media will allow entrepreneurs to identify rates of change of the rates of change! Armed with computer enabled search and analysis algorithms, they can mange these complex new relationships to create value for themselves and their community in a new era of social capitalism.  Social media is a higher order calculus.

It will take everyone to accomplish this together but we can create a new landscape for our Earth, ourselves, and our children’s future.   This is change we must bank on.

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