21st century prosperity™ for slideshare

21st Century Prosperity™

Lives lived meaningfully well

13/04/2023 © Richard Merrick 2007-11 1

"Our gross national product counts air pollution and cigarette advertising, and ambulances to clear our

highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts

napalm and the cost of a nuclear warhead, and armoured cars for police who fight riots in our streets. It

counts Whitman's rifle and Speck's knife, and the television programmes which glorify violence in order to

sell toys to our children.

"Yet the gross national product does not allow for the health of our children, the quality of their education, or

the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the

intelligence of our public debate or the integrity of our public officials.

"It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion

nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile.

And it tells us everything about America except why we are proud that we are Americans."

Robert Kennedy, just before he was shot.

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“constituencies are demanding better because they’re beginning to recognise that the greatest waste in history

is squandering the full richness of untapped human potential. And as a consequence they’re demanding

relationships powered by exchanges that don’t just maximise “profit” on one side and yield “stuff” on the other,

but that redraw the boundaries of human potential. They are demanding organisations that don’t just make

money, but that can begin seeding nurturing and harvesting higher order wealth, with them, and for them.

People, communities, society, governments, investors, and employees alike are all starting to say: “ I’m not

interested in your business. Business is obsolete. The real question is: can your company do anything more

than just “business”? What can you do to inspire, amaze, delight, surprise, elevates, enlighten, and better me,

and the community around me? What can you do to evoke my full potential, and that of the people I care

about? What can you do to authentically matter to me?

Umair Haque, “Betterness” Jan 2011

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Financial Tectonic Plates

The Human Development Index, organised by the UN is a comprehensive measure of overall human development covering financial and non financial measures.

Since the end of the last Century, the index for most countries in the West have started trending flat, whilst those in the major emerging economies continue to grow strongly.

"Our updated research suggests that China's economic output – its gross domestic product – could match that of the US as early as 2027, and perhaps even sooner," he writes. "Since 2001, China's GDP has risen fourfold, from $1.5 trillion to $6 trillion [£949bn to £3.7trillion] Economically speaking, China has created three new Chinas in the past decade. And it's likely that the combined GDP of the four BRIC nations will exceed that of the US sometime before 2020.“ Jim O’Neill Goldman Sachs Nov 201113/04/2023 © Richard Merrick 2007-11 4

http://hdr.undp.org/en/

USA

UK

China

India

A huge imbalance of debt

In the last twenty years, growth in the West has been enabled by an explosion of personal, corporate and bank debt which is proving unsustainable (For UK, See Inset).

The current crisis cycle (2008 – present) suggests that debt capacity is exhausted and that growth for the next several years, and probably the remainder of the decade, will be at best very low.

In the West, consumerism as a path to satisfaction is an option likely to be available to a small minority.

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http://www.economist.com/content/global_debt_clock

A huge imbalance of debt

In the last twenty years, growth in the West has been enabled by an explosion of personal, corporate and bank debt which is proving unsustainable (For UK, See Inset).

The current crisis cycle (2008 – present) suggests that debt capacity is exhausted and that growth for the next several years, and probably the remainder of the decade, will be at best very low.

In the West, consumerism as a path to satisfaction is an option likely to be available to a small minority.

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http://www.economist.com/content/global_debt_clock

“Careers” – Not what they used to be.......

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Source: The Economist

The emerging skills gap

13/04/2023 © Richard Merrick 2007-11 8Source: BCG

Adapting to 21st Century Realities

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Rethinking Reward

Focusing on Money actually blinds us to the pleasure of other things.

Key drivers, once we have sufficient money to take care of basics, are Autonomy, Meaning and Purpose.(Dan Pink)

The Neuroscience view supports this, across 5 domains – Status, Certainty, Autonomy, Relatedness and Fairness.(David Rock)

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http://www.youtube.com/watch?v=u6XAPnuFjJc

http://www.youtube.com/watch?v=5Wu33SdjeCs

Rethinking Structure

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20th Century “Industrial” business structures inhibit many of the factors that lead to personal fulfilment and engagement.

The bond of trust that characterised many organisations in the middle decades of the last Century have been eroded by restructuring and outsourcing.

Levels of staff disengagement are high, and increasing.

We have chronic youth unemployment in the West – not just disengagement, but outright contempt.

The ROA of “Industrial” businesses has dropped significantly (ROA for American Business is one quarter of that it was in 1965)

Rethinking Learning

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Learning is no longer the “expert” pouring knowledge into the brain of the learner in pursuit of corporate need.

It is personal, social, contextual and determined by the learner.

There will be another 3 billion educated workers in the workplace by 2050. Most of them in emerging economies.

Rethinking Ambition

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There is increasing evidence that the traditional measures of success are being replaced by more grounded goals.

21st Century Work

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Shifts in the Balance of Power

International economies will be more balanced. Dominance is likely to be a memory.

“Talent” – the capability to make a difference – will be in short supply.

There will be 3 billion more people in the labour force by 2050. “Standard Labour” will be plentiful, and

cheap.

Organisations will no longer call the shots. “Talent, individually & collectively,

organised in tribes of common interest, will.

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The power and mobility of “talent”

The attraction

and capability of

the organisation

A productiv

e, fulfilling

and transitory relationsh

ip

The Hub of 21st Century Prosperity ™

HubEnabling, not

controlling

Purpose driven

User determined learning

Resources and organisations

Learning and delivery

communities

“Talent” will be varied, dispersed and self determining

Learning will be determined by the user, not the organisation

Businesses and organisations will be warehouses of resource – plant, equipment and capital.

Learning and delivery will be social – tribes of common interest and purpose

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And it’s not just us...............

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Quotations.

We have mined our minds as we strip mine for minerals – in search of only a part of what is there – and for the future, it will not do.Sir Ken Robinson

....rewards can perform a weird sort of behavioral alchemy; they can transform an interesting task into a drudge. They can turn play into work.Dan Pink

Only when the apple fell from the tree did Sir Issac Newton begin pondering the nature of gravity.John Hagel

First in Public School, then in the job culture, we learn to follow the rules and do as we’re told. Obedience and conformity, sad to say, are the common motives of humanity today. Trusting yourself to cast those motives off and follow your own path requires a leap of faith – but it is only down your own path that you will find your heart.Pace Smith

Being right keeps you in place. Being wrong forces you to explore.Steve Johnson

Following the financial crises of 2008, most businesses, and most people are waiting for “normal” to return. It won’t. We have reached the inflexion point where two centuries of momentum from the industrial revolution have run their course. We are overdrawn, overextended and absent joy and purpose in our lives. Prosperity in the 21st Century needs a radically new paradigm.Richard Merrick

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