Re-thinking Wealth in the 21st-Century Economy
What is the future of wealth and prosperity in the 21st
century? Earlier this month, Washington took the country over the so
called "fiscal cliff" and back. Despite their retroactive resolution the
debate over income inequality, tax revenue, spending cuts, and job
growth (all of which deal with our current concepts about wealth,
currency, entitlements, and "fairness") rages on. These debates stem
from a larger problem that is not being addressed at the highest levels
of leadership in our country. That problem is our collective mental
model of wealth. We have very specific biases and assumptions about the
way the world works, the way our economy works, and what is fair and
unfair. The underlying premise of that mental model is unlimited growth,
unlimited resources, and unlimited opportunity. However, we live in a
finite world with limited resources, limiting growth and opportunity
[within our current framework]. The irony here is that our concept of limitations are
limited to the framework we place them in. So yes, in today's economic
paradigm we are limited in what we can actually do and acquire. As a
result, we continue to struggle through a downward economy because we
are focusing on yesterday's standards of prosperity, which define wealth
by the acquisition of currency, property, power, etc. So how do we
shift our mental model to embrace new concepts of wealth?
We must start by
understanding that the definition and perception of wealth will almost
certainly be different in the future. Imagine your mental models, your
biases and assumptions about wealth, as a portfolio of sorts. When we
invest in the stock market or put money into retirement plans, the best
advice is always to spread the risk among different investments, which
in turn creates a diversified portfolio. Just as in nature,
diversification helps to insure longevity and resilience in the face of
adversity.
The same
principle of diversification must be applied to our overall concept of
prosperity. By doing so we begin to uncover hidden wealth, new forms of
value, and new opportunities to grow and become more fulfilled in
business and in our personal lives. Uncovering hidden wealth involves
finding monetary value in diverse abstract concepts such as quality,
creativity, and sustainability. You may be thinking, "That's great
Jared, but quality, creativity, and sustainability, won't pay my
mortgage or make payroll this month." I wholeheartedly agree. However,
just as we make investments to increase our long-term wealth in our
current economic system, we must also begin to invest in the qualities
to create a new sustainable economic infrastructure. This is the process
of thinking long-term. We must begin to rethink growth, value, and
wealth in order to make the right investments today that will ensure a
prosperous and valuable future.
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Excerpt from my latest e-book:
Leading the 21st Century: the CEO's guide to thriving in a volatile and uncertain future
An Adaptive Culture
All too often
great ideas and breakthrough initiatives are declared dead on arrival.
There are a couple reasons why this happens. The first is simply because
the time and energy was not put into identifying disrupters in
peripheral markets. The second is because the organization lacked the
capability to identify those disruptors in the first place. You may have
experienced this in your own company and in retrospect thought, "If
only we had seen (fill in the blank)________ coming, we could have taken
measures to be more adaptive and alternately resilient." What does it
mean to be an adaptive organization? I am referring to the capability to
adapt and thrive in the midst of sudden changes in the external
environment. Traditionally speaking, there are three key attributes
found in adaptive organizations:
- An effective collaborative culture: allowing
staff to work in and through existing structures or bypass them
altogether if necessary to achieve extraordinary results.
- A diversified corporate research philosophy:
staff's ability to obtain information, resources, and new concepts from
multiple sources both outside and inside of the organization.
- A thriving culture of open innovation:
an uninhibited environment that encourages employees to actively share
new ideas and new solutions to existing and potential obstacles.
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Impacts and Implications of an Open Source Education Revolution
There have already
been several reports around the future of education and the role of
open source technology. Rather than focusing on the direct effect that
the open source movement may have on the business of education, we'll
explore a few possible implications that "free" education and
knowledge-share could have on the world at large.
Massive surge in collaboration technology creation:
Although you may
be thinking we already have a massive collaboration technology market,
the reality is people are simply repurposing social networking tools for
project collaboration. In the event that the open source movement in
education cripples the current university model, the market demand for
deliberate collaborative technology will surge, creating new market
opportunities. The acceleration rate of new technologies created through
an already open source community is dizzying, to say the least. The
business of education will be completely replaced, redefined, and
repurposed.
The university system loses contextual relevance:
The university
system in its current context is quickly approaching irrelevance as more
and more college graduates either can't find work or end up taking jobs
where a college degree is not a pre-requisite. The purpose of the
university system is to prepare graduates for the workforce. Today's
university prepares graduates for yesterday's workforce and is therefore
becoming contextually irrelevant.
University "towns" lose largest revenue stream:
My wife and I
moved to Boone, NC several months ago and it wasn't for the bustling
economy. We moved here for a lifestyle change and the outstanding
community. Outside of Appalachian State University, the job market is
sparse and Boone is not unique in this regard. There are a multitude of
small towns across the country dependent on revenues created by the
local university. It's hard to imagine these institutions falling apart
in the wake of an open source revolution. Although, how much longer can
the university last when tuitions continue to rise, graduates continue
to go unemployed, and the lecture-based method of instruction grows more
inapplicable by the week?
Citizens of developing nations will have real-time access to information from around the world:
Open source is
built on the concept of a global commons. No one owns the IP on
developed programs because the work is often created by several members
of the community. This creates massive opportunity for anyone with an
internet connection to draw on the global community for new information
and new ideas. Imagine the possibilities for human advancement in third
world countries if education was freely given, freely shared, and freely
created?
Mobile governance goes global:
If peer-to-peer
knowledge-share goes viral, the implications go far beyond education.
Education has been the doorway to prosperity throughout history. Those
with economic means or status were privileged with an education. An open
source platform for education potentially tears down the economic
barrier that separates the privileged from the masses. Imagine the
global impact when more people are communicating, problem solving,
sharing ideas, and connecting despite national and socio-economic
differences? Think this is far off in the future somewhere? Think again.
In 2011 Canadians began beta testing this process in their federal
elections as several homemade websites were created for the purpose of
vote swapping and coordination. This could very well be the end of the
ballot box as we know it. An educated, highly connected global society
could effectively change the power structure that has been established
throughout human history.
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Breathing Homes: Smart Bio-metals
Over the past two
decades we have seen a dramatic shift toward sustainable building
initiatives. As the cost of energy continues to rise, new technology and
design innovation have accelerated to match a rapidly changing
environment. At the 2012 TEDx USC conference Doris Kim Sung introduced
Smart Thermal Bio-metal as the next phase in sustainable design. Smart
Thermal Bio-metal takes cues from the human body's ability to regulate
temperature and adapt to the external environment.
The Coming Post Labor Era?
Robotics and
artificial intelligence are replacing human labor demand in virtually
every industry. When we think of robotic replacements, we immediately
think, "manufacturing." However, the techno-economy
is quickly invading the white and gray collar industries, such
as customer support specialists, healthcare
workers, transportation, and defense and military personnel.
While much research and work has gone into creating a machine that
can think and reason like human beings, there are several initiatives
toward an emotionally intelligent machine. We may be innovating our way
into a post human-labor era.
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Video: Thriving into the future check out our podcast on the iTunes store Download eBook
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