Purpose driven capitalism plus – reimagining capitalism as a 5 dimensional market system with a 5m mindset and 3v heartbeat
Purpose Driven CapitalismPlus – ReimaginingCapitalism as a 5 Dimensional Market System with a 5M Mindset and 3V heartbeat! ~ The Invisible Hand’s Purpose Seed, manifesting itself as a 5DMarket system with a 5M (Meta Events, Means, Metrics, Method & Mediation) mindset, yielding Triune Shared Value (Shareholder+ Societal + Purpose Driven Motivation/emotion/cultural value)~ (Draft For Discussion Purposes Only ) Charles Prabakar Executive Global Partner/Managing Director Willis Consulting LLC
“Capitalism Plus” at a glance… Situation Complication Resolution Some of the complications are both strategic and We suggest a Capitalism While "Capitalism” is structural. Let’s start with some strategic root Plus approach by re- practiced differently in causes, and they include, but not limited to are - imagining the spirit and different parts of the world, essence of Capitalism, most practitioners agree, Single dimensional capital market mindset. with a profound seedal that capitalism in its current Lack of standardized causality between chain principle, that is form is not designed to tangible market value and the intangible redesigned as a five sustain and withstand expectation building abilities. dimensional value market another financial system(Human Capital, meltdown as that of 2008- Lack of purpose driven motivation and so, Intermediate Goods, 10 time frame, and so, the we trade value as opposed to creating Equity capital, Product & need of the hour is a them. Purpose) with a profoundly principled, fundamentally patient 5M fundamentally patient and Structural root causes include , but not limited to are seasonality mindset (Meta socially accountable events, Means, method, capitalism ,as echoed by Insufficient resistance mechanisms to metrics and Mediation) , Gary Hamel in his MIX effectively manage the external expected that is then executed challenge, to meet the & unexpected events . with a socially ever changing business accountable Triune needs of the 21st century, Insufficient mediating/ regulating agencies. Shared Value (S-Holder, social media driven, Societal emotional & digitally connected world! Ineffective inherent design to equitably cultural value) heartbeat! enjoy and bear value by the larger society. “Trading Value as opposed to creating them fresh”, is the primary challenge of Capitalism, that is practiced in its current form!
Capitalism Re-imagined using Nature’s Seedal Chain (Seed- Season-Sequel) Principle 1 2 3 Re-imagine the spirit and Reframe it as a 5 dimensional Execute it with the socially essence of Capitalism by Value market system with a accountable Triune Sharedresetting it with a profound fundamentally patient 5M Value (TSV) heartbeat Seedal Chain Principle Seasonality mindset (Sequel) Capitalism Plus Creating Triune Shared Value (TSV) Energy Oriented Orchestrating Events Profit Commercial/ Capitalism Plus Creating Triune Shared Value (TSV) Market motivation energies (i.e. internal Commodity Energy Oriented Orchestrating Events motivation/expectation to get wealthy), Capital Equity Capital Market motivation energies (i.e. internal Resources and capital flow etc. Market motivation/expectation to get wealthy), Shareholder Value= Profit Resources and capital flow etc. x (1-g/ROIC)/ (WACC-g) Seed Energy Force Oriented Power Oriented /Matter Disruptive Events ROIC= (Creator/ Seed Energy Sustaining Events Margin x Force Oriented Orchestrator) Velocity Power Oriented /Matter Banks/money making Product IG/RM Sustaining Events (Creator/ Disruptive Events Social/ C-Plus’ Fed type institutions, CV= Market Market Orchestrator) World bank /money Emotion/ trading events, Jobs-to- Political population migration/ be done/ Incubator/In C-Plus’ making Fed type Institutions, Motivation Motivational Social/ Driven shifting events, Price termediate Emotion/ institutions, trading Religion, environmental events, Purpose Political events, population Purpose Goods(IG/ Motivation Philosophies, labor force shifting “Jobs-To-Be- Seed Capital Institutions, migration shifting events, Worldviews, Seed RM) Capital Religion, Driven Seasonal Principle Sequel events, rise of state or Done” Product Purpose environmental events, ideology etc. other forms of capitalism, Philosophies, labor force shifting Power/Time Force/Space radical ideology shift Capital Worldviews, Seed (Encourager/ events, rise of state or (Redeemer/ movements(Arab spring, ideology etc. Seasonal Principle Sequel Disruptor) other forms of capitalism, Sustainer) occupy wall street etc), Power/Time Force/Space radical ideology shift and natural Human (Redeemer/ (Encourager/ movements(Arab spring, Shareholder Value disaster/pandemic etc.) Capital Labor Market Sustainer) Disruptor) occupy wall street etc),Re-imagine Capitalism’s Purpose Energy Seed with its Seasonal Power & Disruptive Forces! and natural g Shareholder Value disaster/pandemic etc.) Reap the value of Capitalism Plus, in three TSV dimensions! Capitalism is re-imagined Capitalism is redesigned Capitalism’s value is reapedas Force - Energy- Power in as 5 Value Markets with a as Triune Shared Value (TSV)! Space -Matter-Time 5M mindset! dimensions! It is time to re-imagine the spirit and essence of Capitalism with a profound seedal chain principle, reframe it with a fundamentally patient 5M seasonality mindset and execute with a socially accountable TSV heartbeat!
Re-imagine the spirit and essence of Capitalism by resetting it with a profound Seedal Chain Principle1 Energy Oriented Orchestrating Events Market motivation energies (i.e. internal motivation/expectation to get wealthy), Resources and capital flow etc. Seed Energy Force Oriented Power Oriented /Matter Disruptive Events Sustaining Events (Creator/ Orchestrator) Banks/money making Social/ C-Plus’ Fed type institutions, Emotion/ trading events, Political population migration/ Institutions, Motivation shifting events, Religion, Driven environmental events, Philosophies, Purpose labor force shifting Worldviews, Seed events, rise of state or ideology etc. Seasonal Principle Sequel other forms of capitalism, Power/Time Force/Space radical ideology shift (Redeemer/ (Encourager/ movements(Arab spring, Sustainer) Disruptor) occupy wall street etc), and natural Shareholder Value disaster/pandemic etc.)Re-imagine Capitalism’s Purpose Energy Seed with its Seasonal Power & Disruptive Forces!
1 Re-imagine the spirit and essence of Capitalism by resetting it with a profound Seedal Chain Principle• As it turns out, the best way to re-imagine capitalism is - as a • Reimagining the Means - i.e. from the purpose driven Capitalism Plus, in five dimensions - current shareholder value focused multiples method at the ticker level and GDP at the country level to a three• First and foremost, it is all about re-imagining/regrouping the Meta dimensional Triune Shared value(TSV) market’s expected and unexpected events in Force, Energy and mindset i.e. Stakeholder value +Societal Power dimensions (or space-matter-time dimensions in a larger Value+ Emotional/Cultural value universal context) using nature’s energy management principle, to help design the right type of resistance mechanism for the right type of event. • Reimagining the Method i.e. from single dimensional capital market system to a five market system with a causal chain – Energy oriented events to be handled with matter dimension among them. based proactive efficient replenishment mindset • Reimagining the Metrics with three – Force oriented events to be handled with Space/distance dimensional TSV value formulas that are dimension based proactive resistance mindset i.e. (note : manifested in 5 different intermediate Force=Energy/distance) forms within each of the five market • Expected events or manmade events to be handled systems. with sufficient elastic cushion space to re type resistance mechanism to bounce back from the impact. • Reimagining Mediation as self regulated • Unexpected event or Messiah made unexpected events mechanism using “inside-out” must have plan B type alternate path of execution to emotional/cultural motivational energy bounce back quickly. driven ethical mindset, with minimal government involvement. – Power oriented events, to be handled with time dimension based proactive effective channeling mindset. (note : Power=Energy/Time) • Policies from Social/political institutions, religion, ideology etc. need to have a timely lever to channel/control its dosages and its impact on the system.
Reframe it as a 5 dimensional market system with a fundamentally patient 5M Seasonality mindset 2 Profit Commercial/ Commodity Capital Equity Capital Market Shareholder Value= Profit x (1-g/ROIC)/ (WACC-g) ROIC= Margin x Velocity Product IG/RM CV= Market Market Incubator/InJobs-to- termediatebe done/ Motivational Goods(IG/ Price Purpose RM) Capital “Jobs-To-Be- Seed Capital Done” Product Capital Human Capital Labor g Market
2 Reframe it as a 5 dimensional Value market system with a fundamentally patient 5M Seasonality mindset• It all comes down to adding four additional virtual markets •How does these five markets work together from the “day in the on top of the equity capital exchange ( i.e. primarily cash life” standpoint? Here are few possible implementation flow value driven)– and link them all together with configurations causality - as outlined in the picture above and explained in detail in our firm’s Purpose driven strategic planning •Tightly coupled “weight factor rating” model, where four Intangible framework Markets (Purpose, Human, Intermediate Goods and Product market) (http://www.managementexchange.com/story/strategic- are configured as a public opinion/rating based markets, with direct planning-purpose-driven-way-using-nature%E2%80%99s- linkage to the tangible Capital Market. In other words, traders are seedal-chain-principle) expected (mandatory) to submit a “weight factor percentage allocation” of their buy price, among the five markets, say (15%-25%- – Purpose equity capital exchange model ,based on 15%-15%-25%) respectively, which would give a clear indication of the formula -> Purpose value= Profit x (1-g/ROIC)/ the motivation behind their trade (i.e. which market among this 5D (WACP-g) market is motivating them to invest on this stock). For example, traders who believe in the management and talent of the company – Human capital equity exchange, based on human will assign more weight to human market, whereas, traders who capital growth, per one of my recent hack at MIX believe in the purpose/vision of the company will assign more weight site for purpose market and so on and so forth. (http://www.managementexchange.com/hack/refor ming-performance-management-systems- •Loosely coupled “weight factor rating” model, same as the previous %E2%80%93-virtual-purpose-equity-vizpity%C2%A9- model but the weight factor is decided by the company during the exchange-way) IPO. – Intermediate Goods Market or Value chain equity exchange based on the formula ->ROIC= Margin x •Reverse weight/value allocation to the four intangible market based Velocity on a pre-established weight factor distribution, say, (10-30-10-10-50), – Product Market or customer “Job to be done” as decided by the public opinion/rating on a day to day basis. exchange, based on the formula -> Consumer/customer value=Jobs-to-be done/Price •Transparent Internal company metrics driven weight allocation – Financial capital market which is today’s’ version of model linked to capital market value (multiples method and/or capitalism based on the formula ->Share holder McKinsey’s Zen valuation formula) using our CPM type system. value= Profit x (1-g/ROIC)/ (WACC-g)
Execute it with the socially accountable Triune Shared Value (TSV) heartbeat (Sequel)3 Energy Oriented Orchestrating Events Market motivation energies (i.e. internal motivation/expectation to get wealthy), Resources and capital flow etc. Seed Energy Power Oriented /Matter Force Oriented Sustaining Events (Creator/ Disruptive Events Orchestrator) World bank /money Social/ C-Plus’ making Fed type Emotion/ institutions, trading Political events, population Institutions, Motivation migration shifting events, Religion, Driven environmental events, Philosophies, Purpose labor force shifting Worldviews, Seed events, rise of state or ideology etc. Seasonal Principle Sequel other forms of capitalism, Power/Time Force/Space radical ideology shift (Redeemer/ (Encourager/ movements(Arab spring, Sustainer) Disruptor) occupy wall street etc), and natural Shareholder Value disaster/pandemic etc.) Reap the value of Capitalism Plus, in three TSV dimensions!
3 Execute it with the socially accountable Triune Shared Value (TSV) heartbeat (Sequel) • Leveraging Michael Porter’s Creating Shared Value (CSV) definition – we see the following TSV definition emerging – • TSV is a Purpose Capital driven Motivational/Emotional/Cultural energy value driven policies and practices that enhance and sustain the collaborative competitiveness of a company while simultaneously advancing economic and social conditions in the communities in which it operates. – CSR = Shareholder value+ Societal value (With no direct linkage to CA) – CSV = Shareholder value+ Societal value (With direct linkage to CA as defined by Michael Porter) – TSV = Purpose Motivational/emotional energy driven cultural value + Shareholder value+ Societal value (With direct linkage to SCCA)
Conclusion• One might ask - while it sounds great in theory, what are its pragmatic implications?• Among many, one key practical implication is Capitalism Plus, by its design, inherently will encourage and reward those companies with bold and profoundly principled, fundamentally patient and socially accountable ideas and proposals (e.g. VizPlanet platform), that would work for 10 billion people (as opposed to the current 6 billion), with a triune shared value (TSV) mindset, using multiple forms of capital—purpose, human, IG, product, and equity.• In other words, Capitalism plus, in its essence is a purpose driven, three dimensional value balancing market system (i.e. the “inside-out” motivational/emotional energy value balancing the remaining two “outside-in” stakeholder and societal value energies) using a 5 dimensional market system, with a collaborative 5M (Meta events, Means, Mechanism, Methods and Metrics) mindset.• Simply Put, Capitalism Plus, encourages every citizens to participate in the Free market Capitalism driven prosperity journey by – Planting their “purpose driven motivational energy seed” ideas, using nature’s profound seedal chain principle. – Germinate itself into a five dimensional value market system (Purpose Market, Labor/Human Market, Intermediate Goods Market, Product Market and Equity Market) with a fundamentally patient ,5M seasonality mindset (Meta market events, Means, Method, Metrics and Mediation). – Yielding a socially accountable Triune Shared Value Portfolio(Shareholder, Societal and emotional/cultural value)!