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WHY IS BUSINESS CHANGING?. Marc LUYCKX GHISI Dean « CBA Business School »ZAGREB Brussels [email protected] A SHARP TRANSFORMATION…. (Peter DRUCKER). Every few hundred years in Western History there occurs a sharp transformation.

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Why is business changing

WHY IS BUSINESS CHANGING?

Marc LUYCKX GHISI

Dean « CBA Business School »ZAGREB

Brussels

[email protected]

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


A sharp transformation

A SHARP TRANSFORMATION…

(Peter DRUCKER)

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Why is business changing

Every few hundred years in Western History there occurs a sharp transformation.

Within a few short decades, society rearranges itself : its worldview (paradigm), its basic values, its social and political structures, its arts, its key institutions.

Fifty years later there is a new world.”

Peter DRUCKER: “Post Capitalist Society”. p.1.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Transition to transmodern

Transition to Transmodern

New Male/Female Partnership

End of Patriarchal Society

Knowledge Society Transmodern

Supra-Ego Awareness

DANGER!

9/11?

Industrial Modern

Industrial Relict

Cultural Creatives

Agrarian Pre-Modern

Agrarian Relict

Time

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


One of the most fundamental shifts

One of the most fundamental shifts

  • “We are living through one of the most fundamental shifts in History:

  • a change in the actual belief structure of Western Society.

  • No economics, political or military power can compare with the power of a change of mind.

  • By deliberately changing their images of reality, people are changing the world.” Willis HARMAN Stanford Research Institute, Founder of the “World Business Academy” (+1997)

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Five levels of change

FIVE LEVELS OF CHANGE

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Why is business changing

  • Humanity is in danger of collective death although we have money and technology

  • End of the Patriarchal values (Command, control)

  • End of “Modernity”. “Transmodernity” = the best of premodern and modern. post secular, flat, tolerant, new level of resp. & consciousness.

  • Knowledge society as a turbo of change

  • Crisis of all institutions.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


The iceberg of change

The Iceberg of Change

Level 5 : Credibility gap of all Institutions is increasing

dramatically…

Level 4 : The knowledge society : post-capitalist society (Drucker)

Level 3: End of Modernity: REASON Only Truth, Science, Violence, Pyramids, Control

Level 2 : End of Patriarchal myths, sacred and values

Level 1 : Danger of Collective Death

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Level 1

LEVEL 1:

HUMANITY IS IN DANGER OF COLLAPSE

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Worldwatch institute washington

WorldWatch Institute Washington

  • “Our global economy is outgrowing the capacity of the earth to support it, moving us ever closer to decline and possible collapse….

  • “We have the technologies needed to build the new economy…”

  • Lester BROWN: “Plan B 2.0” Norton NY, London

  • 2006. Presentation text on the cover.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Level 2 end of patriarchal values

Level 2: END OF PATRIARCHAL VALUES

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


From matrilinear to patriarchal

MATRILINEAR(-3500)

Woman= Goddess,

snake = her power

SACRED = LIFE tree, blood, birth…

Sexuality + Pleasure

Power = life giving

Beauty + art Creativity

PATRIARCHAL

God the Father

women infer + sin.

SACRED= Violent DEATH, blood, cross…

Sex pleasure impure

Power = to kill

Ascetism is better

From Matrilinear to Patriarchal

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Influence on religions

INFLUENCE on RELIGIONS

  • Patriarchal values are below the religions

  • In theory Religions can adapt. Jesus and Mohammed were definitely more post patriarchal that their followers. (“Da Vinci Code”!)

  • Will Religions adapt to post patriarchy ?

  • Or will the XXIst century be spiritual-post religious?

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Level 3 towards transmodernity

Level 3: TOWARDS TRANSMODERNITY

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Pre modern to modern

PRE-MODERN

MODERN

Pre-Modern to Modern

GOD

REASON

Economist

Clergy

Government

Government

Men

Men

Women

Women

COSMOS = sacred

COSMOS = object

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


From modern to transmodern

MODERN

TRANSMODERN

REASON

Economist

Government

Men

Women

Men ‘above’ the COSMOS

From Modern to Transmodern

Men part of COSMOS

Cultures

Centre is empty

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


From modern to transmodern new definition of truth

MODERN

Pyramidal

Intolerant

Rational = truth

Secular (France)

Disenchanted

NOT Responsible

No conscious of whole

TRANSMODERN

Round table + Hole

Radical tolerance

Truth exist=“void”

Post secular

Re-enchanted

Collective responsibility

New level of consciousness

From Modern to TransmodernNew Definition of TRUTH

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Modern and transmodern new definition of science

MODERN SCIENCE

Objective + TRUE

Rational = OK

Value free

No societal response

Analytic Disciplines

Offer approach

Engineering Human Mind

TRANSMODERN

Subjective + poetic

Complex, metarational

Values are carried

Civil society involvement

Transdisciplinary

Demand approach

All possible NOT OK

MODERN and TRANSMODERN NEW DEFINITION OF SCIENCE

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Modern transmodern new management of violence

MODERN STATE

Non-violence inside State Borders

Official Violence outside borders

WAR is normal policy (Clausewitz)

Member STATES + US

TRANSMODERN State

Non violence Between States (EU = success)

Normal Policy = Non-violent negotiation

WAR is latest resort+ Just

EU Foreign Policy?

Modern & Transmodern : New Management of violence

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Level 4 the knowledge society

Level 4 :THE KNOWLEDGE SOCIETY

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Definitions

DEFINITIONS

  • Data: Mainly facts about things or records (eg in databases) also what is on the WWW, it may be structured and/or unorganised

  • Information: Data that may be already sorted eg by Google™. There is an overabundance of this.

  • Knowledge: is data and information ‘processed’ by human cognitive systems and passed out

  • Human brain and networks are the NEW TOOLS of PRODUCTION

  • Wisdom, Knowledge are less common. Perhaps there is not enough.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Knowledge society post capitalist peter drucker 1993

Knowledge society= Post capitalist?(Peter Drucker 1993)

  • This new economy is POST CAPITALIST because capital becomes less important than knowledge in the value creation process

  • Value creation is linked to knowledge applied to knowledge.

  • This new tool of productionis more important than capital and technology.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


New value creation proces

INDUSTRIAL SOC.

Add value to object

From steel to car !

Tool is Machine

Humans are cost

Management is machine-centered

Machine is central

KNOWLEDGE SOC.

Create new K

From data, info to K

Tool is Human brain in Networks

Humans are capital

Management is Human-centered

Machine is at service

NEW VALUE CREATION PROCES

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Beyond trade i

BEYOND TRADE (I)

  • If I exchange an object against money, I loose the object. This is “trade”: I win and I loose. “Win-Loose” logic

  • If I exchange knowledge, I do not loose my knowledge. I win and you win. I am not trading anymore. I share. This is a “win-win logic” of sharing.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Beyond trade ii

INDUSTRIAL SOC.

Free trade of objects

Industrial structure

Pyramids

Unemployment

Pollution

Quantitative growth

KNOWLEDGE SOC.

Free sharing of knowl.

Post-industrial-capitalist.

Network =value creation

Self-creation of my job

Immaterialization of prod.

Qualitative growth

BEYOND TRADE (II)

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Another economy i

ANOTHER ECONOMY(I)

  • Quality of knowledge is more important than quantity.

  • Progress becomes more qualitative than quantitative.

  • Measurementsare more qualitative: “Intangible” value are increasing

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Another economy ii

ANOTHER ECONOMY (II)

  • Secrecy and patenting are in crisis

  • From “Win-Loose” to “Win-Win”

  • From “exclusion” to “inclusion”

  • From Logic of war to logic of love !

  • From “command and control” to “enabling creativity and sharing”

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Another management

ANOTHER MANAGEMENT

  • Human capital is central because it is caring for the tool of production: Please come back!

  • Thus Management : shifts 180° towards human centeredness = more creativity-centred, gender & culture – centred.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Another system of measurements

ANOTHER SYSTEM OF MEASUREMENTS

  • « Intangible assets » is a new concept invented by Karl Erik SVEIBY (Sweden)

  • They are becoming more and more important in the knowledge society

  • Because the knowledge society is about knowledge which is immaterial, intangible and qualitative.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


A new concept intangible assets i

A NEW CONCEPT : INTANGIBLE ASSETS (I)

  • Intangibles assets =

    • Know how,

    • Reputation,

    • Trust in the company,

    • Structure of the company,

    • Strategy (balanced scorecards)

    • Relations with personnel,

    • Relations with clients,

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


A new concept intangible assets ii

A NEW CONCEPT : INTANGIBLE ASSETS (II)

  • Relation with civil society

  • Relation to environment

  • Relation to our collective future and sustainability

  • But also quality of the networks

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


New tools of production

NEW TOOLS OF PRODUCTION

  • 1st Tool of production=Human brain : Knowledge is produced by human brain which digests data and information and creates knowledge.

  • 2 d tool of production =Networks : Knowledge is increased only by sharing in a network. This is an inclusive logic.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


M easuring intangible assets

MEASURING INTANGIBLE ASSETS ?

  • Stock exchange measurements are still looking at financial “tangible” assets (quantitative) but they increasingly look at “intangible” assets (qualitative).

  • Today a company is measured more and more by its intangible assets.

  • Example: “Men’s Wear” USA. & “World Business Academy”, “Spirit in Business”.

  • See also Neskey: www.neskey.com

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Growing importance of intangible assets ii

GROWING IMPORTANCE OF INTANGIBLE ASSETS (II)

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Intangible indicators grow

Potential for greaterparticipation andwider accountability

Non-financial indicators grow in importance

Transparency

Financial indicators remain important

1990

2006

2015

ICT Proliferation

Intangible indicators grow

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Conclusion networks as crucial intangible asset

CONCLUSION : NETWORKS AS CRUCIAL INTANGIBLE ASSET

  • Networks increase creativity in K product.

  • Networks are part of the NEW TOOL of PRODUCTION.

  • It is crucial to be active participant in excellent networks

  • As individual

  • As a company

  • It is not an option: it is indispensable

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Conclusion ii new values

CONCLUSION (II): NEW VALUES…

  • Underlying values needed in the industrial capitalist society are freedom, initiative, ceativity…

  • NEW (more feminine)Values are needed:

    • Freedom (of sharing)

    • Solidarity, Caring, Respect

    • Transparency

    • Concern for the Common Good

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Level 5 eu as the first transmodern political structure

LEVEL 5 :EU AS THE FIRST TRANSMODERN POLITICAL STRUCTURE

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


History of the eu 1

History of the EU : 1

  • Monnet refuses Council of Europe 1949

  • Monnet & Adenauer May 9 1950.

  • Coal & Steel Treaty 1951.

  • Failure of Community of Defense 1954.

  • Treaty of Rome 1957.

  • Single Act, Maastricht, Amsterdam, Nice.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


History of the eu 2

History of the EU : 2

  • Under Delors 1985-1995:

    • + social policy : social fund for poor citizens

    • + devpt Policy for the ACP (“Lomé”)

    • + regional policy solidarity/ poor regions

    • + Environment policy overarching all !

    • + Cultural policy not very rich!

    • + abolition of visas ( “Schengen”)

    • +Foreign Policy + Defense & Security Policy

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


History of the eu 3

History of the EU : 3

  • 1999: Commission is killed by the European Parliament.

  • Hence period of Retreat and fear…

  • 2000- 2005: is “Free Market” period, although = obsolete “industrial” concept.

  • 2006- 2010: Transitions and dangers?

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


The eu first transmodern entity

The EU = first transmodern entity

  • Alliance of non-violence between States

  • In a global world we need non violence between States. Success of EU model.

    • New Foreign policy ?

    • New Defense and Security policy ?

    • Importance of International Human rights ?

    • New economic policy: Lisbon (I) ?

    • Global actor for “Sustainable” economics ?

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Paradigm shift in foreign policy 1

Paradigm shift in Foreign Policy 1

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Paradigm shift in foreign policy 2

Paradigm shift in Foreign Policy 2

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Us european dreams

US & EUROPEAN DREAMS

DECLINE AND RAISE

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Us and eu dreams 1

American Dream

Politics

Modern State (1800)

Independance

War & death penalty

Science & Technol.

Always good

Modern approach

European Dream

Politics

Transmodern (2010)

Non-violent pact

No war & negotiation

Science & Technol

To be monitored

Transmodern approach

US and EU DREAMS : 1

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Us and eu dreams 2

AMERICAN DREAM

Business

$ is God’s blessing

New Transmod. Busin.

Economy

Freedom = Propriety

Free Trade as religion

EUROPEAN DREAM

Business

Burden of proof on B

Transmodern Busin.

Economy

“Free Trade” + Social

Sharing in networks?

US and EU DREAMS : 2

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Us and eu dreams 3

US DREAM

Environment

Against US freedom

National approach

Burden on consumer

Human rights

National approach

Integration process

By indentification (//F)

EU DREAM

Environment

Sustainability is norm

World Consciousness

“Precaution principle”

Human rights

Global & transnational

Integration process

capitalize on diversity

US and EU DREAMS : 3

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Us and eu dreams 4

AMERICAN DREAM

Work

Life for work

Time efficiency+doing

More efficient

National identity

God given mission

Death Instinct (Rifkin!)

Consume without care

No care for survival

EUROPEAN DREAM

Work

Work for life

Quality of life, being

Less efficient

Multi level identity

Our common survival

EU = Life project

Non-violence project

Also towards nature

Global ethics

US and EU DREAMS : 4

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Eu dream and citizens

EU dream and citizens

  • Are citizens aware of the EU dream?

  • Are the governments speaking about transmodern dimension?

  • Why are Europeans so skeptical?

  • Are they aware of the transmodern quality of their dream?

  • Are the EU governments getting the dream?

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


C hapter 4 a new mission for the business

CHAPTER 4: A NEW MISSION FOR THE BUSINESS ?

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Business and ethics a new relation

BUSINESS AND ETHICS :A NEW RELATION

  • Industrial objects are “tangibles” & ethically neutral.

  • Knowledge is IMMATERIAL, “intangible” & always linked to a meaning

  • And thus to ethics.

  • Producing knowledge thus involves a meaning and a business reputation = an “intangible” asset.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Eu only 5 are changing

EU : ONLY 5 % ARE CHANGING

  • 95 % of the EU Business leaders stick to the old industrial strategies:

    • More capital + advanced technology

  • 5 % of the EU Business leaders change really their strategy:

    • Capital+ Technology.+human creativ

    • Enterprise in Network :win-win strat.

    • Personnel is not a cost but key asset

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Us 10 survived the crash

US: 10 % SURVIVED THE CRASH

  • Verna ALLEE:

  • ˝In US, only those 10% have survived the dot.com crash: Example: CISCO˝

  • ˝Because they have changed :

    • The tools (ICT)

    • The structure of their enterprise

    • The underlying vision of their scope and values˝.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Four definitions of entrepreneurship

Four definitions of entrepreneurship

  • Agrarian : Conquer More land

  • Industrial : Conquer Markets. CEO controls and knows.

  • Knowledge entrepreneur : cares for human capital, fosters creativity, Sustainable. Facilitator.

  • “Spiritual” entrepreneur: conscious of his mission towards the Common Good of Humanity.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Challenges for business

Challenges for Business?

  • Administrations and politicians are slow to understand and adapt to the change.

  • Business is sometimes more quick to grasp the changes and to adapt.

  • Business has perhaps a crucial role in warning politicians and showing the way forward?

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Some good books

Some good Books…

  • Peter DRUCKER: “Post capitalist society”, Harper Business, New York, 1993.

  • Verna ALLEE: “The future of knowledge” Elsevier Science, 2003, USA.

  • Rob CROSS: “Networks in the Knowledge economy” 2003.

  • LEIBOLD and al. : “Strategic Management in the Knwoledge economy” 2002.

  • David ROONEY (Australia): “Handbook on the Knowledge economy” 2005.

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


Good books ii

Good Books (II)

  • Jeremy RIFKIN: “The European Dream: when Europe’s vision of the future is silently eclipsing the American dream” Penguin 2004.

  • Ray ANDERSON: “Mid Course correction” 1998. www.chelseagreen.com (Interface)

  • World Business Academy: www.worldbusiness.org

  • “Neskey” on intangible measurements : www.neskey.com

Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels


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