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WHY IS BUSINESS CHANGING?

WHY IS BUSINESS CHANGING?. Marc LUYCKX GHISI Dean « CBA Business School »ZAGREB Brussels dean@cba.com.hr. 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?

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  1. WHY IS BUSINESS CHANGING? Marc LUYCKX GHISI Dean « CBA Business School »ZAGREB Brussels dean@cba.com.hr Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  2. A SHARP TRANSFORMATION… (Peter DRUCKER) Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  3. 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

  4. 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

  5. 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

  6. FIVE LEVELS OF CHANGE Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  7. 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

  8. 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

  9. LEVEL 1: HUMANITY IS IN DANGER OF COLLAPSE Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  10. 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

  11. Level 2: END OF PATRIARCHAL VALUES Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  12. 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

  13. 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

  14. Level 3: TOWARDS TRANSMODERNITY Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. Level 4 :THE KNOWLEDGE SOCIETY Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. GROWING IMPORTANCE OF INTANGIBLE ASSETS (II) Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  35. 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

  36. 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

  37. 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

  38. LEVEL 5 :EU AS THE FIRST TRANSMODERN POLITICAL STRUCTURE Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  39. 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

  40. 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

  41. 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

  42. 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

  43. Paradigm shift in Foreign Policy 1 Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  44. Paradigm shift in Foreign Policy 2 Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  45. US & EUROPEAN DREAMS DECLINE AND RAISE Marc Luyckx Ghisi CBA Dean, Zagreb, Brussels

  46. 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

  47. 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

  48. 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

  49. 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

  50. 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

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