Each stage of economic development in human history was derived from the prior stage by integrating the tools developed in that prior stage; The agrarian era, the scientific revolution, the industrial revolution, the information era, the knowledge economy all followed this pattern.
Whatever happens next will be extremely interesting.
Today we are rapidly emerging era of human history where there is great cause for optimism. The tools developed from the Knowledge economy are truly remarkable. For the first time in modern history, Value is not represented by things, it is represented by the space between things.
The Symbionomics project is produced by world class film maker Alan Rosenblith and visionary Sustainable Community Developer, Jay Standish. Their objective is to reveal the next great truism in the context of human economic systems. Please watch the following trailer and please support this essential project. The hardest secret to keep is the truth.
In the old days, the hiring manager was the person to know if you wanted to get a job. They would read your resume and compare it with the “bell curve” in their mind. This bell curve contains a statistical sample of all similar situations that the manager has witnessed, the variables involved, and a range of outcomes observed across their long and illustrious career…Ohhhmmmmmm
We Call This Simulated Wisdom
Modern HR systems try to simulate this wisdom through a series of innovations such as key word search, structured interviews, personality tests, and employee incentives. Now we can use Google (an information company) to derive sort of a proxy for wisdom as we assess search results in our own image. Facebook and Linkedin go a step further by providing us with another filter through which to pass judgement upon a future employee or partner. The problem is that the more we look into these systems, the more they deliver back to us a reflection of ourselves…Ohhhmmmmm
Social Media vs. Normalized Intellectual, Social, and Creative Capital
The Data need to be Normalized
The world has become so strange, complex, technological, and interwoven, that no single person can possibly posses such a vast and broad set of experiences as to arrive at an optimized outcome every time. Innovation favors strategic combination of diverse knowledge unlike the Industrial revolution which favored identical packets of similar knowledge. The Innovation Economy will require a completely new approach to social value creation.
The Social Credit Score
Not unlike the FICO score, the knowledge inventory is a collection of potential knowledge events where the social network is a reporting agency that has a vested interest in meaningful knowledge events. Unlike FICO however, the variables for knowledge can be infinite (think of the Dewey Decimal System). Also, a Social Credit Score would respond to positive events rather than a finite set of negative “hits”.
The Percentile Search Engine
Instead of just returning information, this new search engine must return probabilities from which an entrepreneur may test scenarios related to the likelihood of executing a particular business process at a known time, cost, proximity, ROI, etc.
An entrepreneur may want to know if her team has enough knowledge to execute a business plan. Perhaps the team has too much knowledge and they should try something more valuable. Maybe the team does not have enough knowledge and they should attempt another opportunity or accumulate training.
Valuation of Knowledge The search engine can look into a network and identify the supply and demand of a knowledge asset. If it is unavailable or too expensive, the search engine can adjust for price, risk, or options that may emerge at a later date.
Business Intelligence Organizations can scan each other’s knowledge inventory and decide to compete, cooperate, acquire, or evade.
Knowledge management If a key person retires, the entrepreneur would simulate the knowledge that is lost and reassign people strategically.
The Secret Sauce Companies such as Disney and Boeing both use Engineers, each would have proprietary algorithm of knowledge that represents their “secret sauce” of success. These recipes can be adjusted and improved to reflect and preserve the wisdom of an organization. Over time, these algorithms will become far more valuable then the Patents and Trade Secrets created by them – this will allow technologies to be open sourced much more profitably and shared across more industries.
Eventually, we will learn to manufacture wisdom …OhhhhMmmmmGeeeee
Résumé: A French word for separating the body from the brain
We are entering a renewal in the work force. The global imperative is for the United States to become an innovation economy now. This is an entirely different animal than the Industrial revolution; I have long argued that the résumé system is by far the most archaic knowledge management “currency” of trade in use today.
The entire premise of the résumé is destitute, if not destructive, in the modern world. Words on a computer screen are a very low level ‘media form’ being used to describe a very high ‘media form’; social, creative, and intellectual capital. It’s like using crayons to design an aircraft.
If the key words are so important, why have any other words?
A manager always hires people that remind them of themselves. They estimate the future success of a candidate based on their own limited, and often static, past experiences. The world is moving so fast and has become so complex that no manager can possibly know enough to capitalize the future based on a viable statistical sample of past experiences – we’re all holding on for dear life in a hurricane of change. The problems and opportunities of the future are so huge, so important, and happening so amazingly fast yet the allocation of human resources is worse than random for a candidate pool.
Here are a few comments that I’ve picked off some recent Human Resources Community Blogs:
1. And our future goes with it:
“Most recruiting systems I’ve seen screen out innovators. Any résumé that is unique, different or convention-defying gets surreptitiously put in the junk pile.”
2. Start by looking in the junk pile:
“The Innovation Economy requires that the talent that creates the most value for an organization must rise to the top. Innovators are playing an increasing role in creating shareholder value – one might argue that they create the most shareholder value these days – and figuring out how to find and attract this very different breed of talent is one of the most critical initiatives you can launch within your organization.”
3. What part of “share holder value” are we having difficulty with?
“The most innovative people I have ever met don’t follow conventions in their experience or in their résumé. Or, they get bored very quickly when they can’t innovate or are forced to focus on operations, and efficiency. Most might look like (and even be) job hoppers”
4. Here is my favorite comment – I wish I could hug this person:
“I think it takes more than a résumé to screen an Innovator in or out. As blogs, blog posts, social networking, more powerful search tools, personal websites, the emergence of video on the web, talent platforms that offer CRM, etc. etc. etc. continue to become additional tools for an employer to consider in making a hiring decision, is the résumé still a currency for a candidate?”
We have an inventory and CAD model of every nut, rivet, and panel that goes on an airplane – why would we try to build anything without one?
So Please, let’s evolve out of the revolutionary times and develop a real community knowledge inventory. It must be computer enabled and based on a taxonomy that everyone knows and understands. It must be read, analyzed, sorted and vetted by social networks and communities of practice. It must integrate with knowledge assets from anywhere in the world.
Social Capitalism can be summed up as Classical Capitalism except with the factors of production swapped from “Land, Labor, Financial Capital” to “Social Capital, Creative Capital, and Intellectual Capital”.
This video introduces a new way of looking at social media valuation. It should be obvious by now that people create value in social media – otherwise they would not do it. The monetization paradox is stuck on “how can this value expressed as a financial instrument”?
If you engage your clients in the same currency that they are trading among themselves, the greater the likelihood you will realize the value of the new media phenomenon.
People accumulate a wealth of knowledge in their lives as they pass from project to project and industry to industry. Each of our social, creative, and intellectual pursuits and exposures combines to form the person who we are and the contribution to society that we represent.
Your knowledge and experience also helps others predict what preferences you may have and what decisions you may make. Corporations, advertisers, banks, insurance companies, and politicians all want to know this and they will go to extreme and expensive measures to get it – why not just sell it to them?
Peace sells, but who’s buying?
Management of companies, little league teams, Rotary Clubs, even raising a family, is extremely valuable knowledge to a wide variety of situations. Civic service, spirituality, military service, and philanthropy provide a basis for a host of knowledge attributes. Academic accomplishment, physical achievement, artistic expression, manual dexterity, and whole body coordination provides great insight to the application of all knowledge. Physical challenges, grief, personal struggles, and the experience of injustice further add to the wealth of knowledge one accumulates in a lifetime.
Every person is unique with a different set of knowledge than any other; therefore, everyone has something to offer to someone else. Each person’s combination of formal and informal education is valuable in it’s uniqueness. With the proper system and incentives in place, trillions of dollars are on the table to bid for access to your knowledge.
The Den of Thieves:
The resumes that we post on Monster.com are woefully inadequate and so heavily gamed that predictive utility related to your future decisions and innovative capacity is severely compromised.
The credit score also measures past behavior by tracking negative events; many of which are outside the control of the subject such as a layoff, fraud, medical emergencies, etc. Again, the credit score is quite useless as a predictor of future decisions and innovative capacity.
Now we have Social Media and the mad scramble to be visible in social media space. The scourge of marketers, spammers, and fraudsters are close behind chasing your information that they are all too happy to sell to the aforementioned “clients”.
Take a Step Back … and get a grip
We are talking about your information that describes your knowledge attributes which predicts your preferences, your future decisions, and your innovation. Yet complete industries exist to collect it from you for free, organize it, and sell it to others for a great deal of money. There are 5000 job boards collecting resumes, 300 Million credit scores being securitized by Wall Street, and 12,000 social media sites aggregating your creative content, relationships, and knowledge attributes.
Join The Ingenesist Project:
The Ingenesist Project specifies a system where your knowledge attributes are expressed in a packet of code that you control, distribute, regulate, withhold and track as you wish.
The result is that you will be paid to learn, to know, to practice, and to participate in life as you wish. It becomes in your best economic interest to produce exactly what you are best at, and have a talent for producing. It will be in the best interest of corporations, marketers, Wall Street, insurance companies, and Politicians to support you in these pursuits so they can “farm” the knowledge today that will buy their products tomorrow.
Today, land, labor, and capital make up the “Tangible” assets allocated by entrepreneurs in the production of all products and service. Meanwhile, Social Capital, Creative Capital, and Intellectual Capital of people and communities are called “Intangible Assets” on the corporate balance sheet.
As soon as you leave the Corporation, this condition reverses. What if the new generation of corporations were built on this reversal?
Suppose it is already happening.
The next economic paradigm will be built on Social Media as soon as people start getting together to build things. Social Capital, Creative Capital and intellectual capital will be allocated by entrepreneurs in the production of all products and services. Meanwhile land, labor, and capital will be the intangible assets.
This may not be so far out.
LAND: with Social media, Mobile internet, geolocation applications, mobile applications, and speed blogging – most activity is independent of physical land. Instead, Public “land” or private “land” behave as the intangible component where people assemble and produce things.
LABOR: no longer means that two physical parts are assembled into a machine. Instead two ideas are assembled into a third idea and redeployed as data, information, knowledge, innovation or wisdom.
CAPITAL: Seriously; what exactly is Capital these days except the thing that banks play with and politicians argue about? Capital is created from debt. The continuation of Capital Markets as we know them exists more as the absence of a reasonable alternative than an actual proxy for true value or productivity.
Instead; 500 Million people flock to Facebook, Twitter, Google, Linkedin, Foursquare, Gowalla, etc., to collect options and store social value. Uhm…Why?
The next phase for social media will become user generated productivity. That is when people get together outside the construct of government and corporations to build something. If we are lucky, this transition will happen before we are forced to “rebuild” something.
The Ingenesist Project specifies an Innovation Economy built on a platform of social media as the next economic paradigm. Material based on video series here
Factors of Production (from classical economics) are presumed to be some proxy for land, labor, and capital. Suppose, however, the factors of production for modern society were something like “Social Capital, Intellectual Capital, and Creative Capital” of people and their relationships? After all, these are the assets that are deployed in order to produce the proverbial basket of goods upon which most currencies are compared.
Since these factors of production exist between the ears of each individual person, they are, by definition “privately controlled” and readily exchanged among other people in social networks. If the US Supreme Court can rule that Corporations are people, then it is equally valid that people are corporations. Therefore, Social Capitalism refers to the economic and social system in which the means of production are social, creative, and intellectual assets.
In order for Social Capitalism to become the dominant form of social organization, quite literally, society must reorganize itself to trade “abundant intangibles instead of scarce tangibles”. Then, all the decentralized innovations can integrate. The following video describes a system for reorganizing society so that the new economic paradigm; called Social Capitalism, may emerge.
Reorganizing For The Era Of Social Capitalism
Social Capitalism is similar to Material Capitalism with the exception that society would trade in abundant intangibles instead of scarce tangibles….and, everything changes.
The Article below is from 2010 – more than 4 years ago – when Social Capitalism was just beginning to enter the lexicon of the social media practitioners. This article below quotes the Wikipedia Article on “Social Capitalism”. That article has since been removed by Wikipedia for failure to be a real -ism; I suppose. That is, Wikipedia does not yet recognize the movement as a real form of Social Organization. It is interesting, if not historic, to watch the progress of a social movement from its tenuous inception:
Social capitalism is an old idea taking on an new form in the age of social media where social capital, creative capital, and intellectual capital are deployed outside the construct of the prevailing corporations or governments.
Throughout human history, societies have reorganized themselves in response to tyranny, innovation, environment, new wisdom, etc. I believe this to be the root of what Social Capitalism is, and therefore, how it should be defined.
In The Shadows:
The dominant definition of “Social Capitalism” from Wikipedia reflects a social cause cast against the backdrop of market capitalism. This definition acknowledges that economies work better when everyone participates; specifically, the so-called tier 1 and tier 2 people. Tier 1 individuals have steady financial incomes that allow them to function without private or government support. Tier 2 individuals cannot meet the prevailing standard of living and rely on private or government support. Therefore the prevailing definition of Social Capitalism often refers to efforts to bolster tier 2 persons as a means of reinforcing the economy for everyone.
There is an inherent conflict where tier 1 is held responsible to support tier 2 as a means of protecting their tier 1 status. Traditionally tier 2 included poor families dependent on food stamps; children who depend on public education; elderly people who are no longer able to work, and low-income criminals who require police intervention, etc.
Ideally, getting more people from tier 2 into tier 1 is the desirable objective. Indeed political division is marked by the theories and practices on how exactly that objective would best be accomplished.
A worst case:
What happens when tier 2 is simply forgotten; they are simply allowed to fail in the mainstream economy? What if the government becomes too weak to bolster their economic prospects? What happens when a critical mass of tier 1 people involuntarily enter the tier 2 environment bringing along their substantial knowledge inventory. They are otherwise very productive people that had been laid-off, outsourced, underemployed, or otherwise marginalized.
The Special Case:
What happens when Tier 2 deploy new technologies that responding to their priorities, not necessarily Wall Street priorities. What happens when tier 2 people trade a social “currency” among themselves? What happens when tier 2 swells to a size and scope that they are able to bear broad political and economic influence. Many great human struggles emerged from under the hand of a Tier 1 constraint using their own manner to store and exchange value (currency) represented by their own knowledge inventory and productivity. Why would that not happen internally in American Society?
Social Capitalism is where factors of production in an economy are purely human and technological and less structural:. Specifically, social capital, creative capital, and intellectual capital deployed outside the construct of the prevailing corporations or governments. Maybe it should be called “structural capitalism” because that is what is actually changing. We are at an extraordinary time in history where an extraordinary structural reorganization is taking place.
Independence is a state of mind. Americans have always chosen independence – and they will continue to do so. It is often convenient to let ourselves trust elected leaders and the esteemed business titans to do what is in our best interest. Don’t be fooled, this is “trust”, not dependence.
It is likewise unwise to underestimate the independence movement – independence from corrupt currency, independence from fossil fuel, independence from corporate greed, independence from divisive politics, independence from endless war. Just when everyone thinks that Americans are up against the ropes, they come up with an idea so radical, so creative, and so astonishingly consciousness-altering, the rest of the world just shakes their heads in collective disbelief.
That is where we are today. Something extraordinary is about to happen in the way Americans organize themselves. Nothing is sacred, no one is immune. The next economic paradigm will alter the course of civilization.
All stages of human development were derived from the prior stage of human development by integrating the tools of that prior stage. For example, the agrarians integrated the tools of the hunter-gather such as using the chopping rock to till a field for planting – and so forth. Likewise, the industrial revolution integrated the tools of the scientific revolution; mathematics, chemistry, and engineering. Earlier this century, the computer age integrated the tools of the industrial revolution, etc.
The next economic paradigm will be derived from the Knowledge economy by integrating the tools of the knowledge economy; these are The Internet, Social Media, mobile communications technology, etc…
China and India are producing millions of engineers as part of their global economic dominance strategy. Engineers increase productivity and productivity creates wealth. Why? Because money is only a means for storage and exchange of value and engineers create the value.
America has no idea who the engineers are
I heard an interesting comment on a group discussion board recently; “there are so many engineers on the streets that employers have their pick of the crop”.
First, I find the reference to “crops” ironic. Second, why should engineers need to fit every nuance of a job description? Engineers tell us the things that we don’t already know – who exactly writes those job descriptions if they know what they don’t know? Or in practical terms, why isn’t an Aerospace Engineer immediately qualified to be an Energy Engineer?
The Ingenesist Project identifies 3 types of knowledge assets: Social Capital refers to one’s ability to organize, perform, and manage themselves in teams of other people. Creative Capital refers to the ability to relate seemingly unrelated concepts, objects, and perceptions into new and innovative ideas. Intellectual capital refers to the ability to deploy book learning, objective reasoning, and tactical experience toward specific objectives.
Everyone has ALL of the above asset categories, however, we each posses them in different proportions. People like Steve Jobs have all of these in very high quantities, but the rest of us are somewhere in the middle. Most have a surplus in one or two at the expense of the remaining asset categories. Engineers typically enjoy a surplus of intellectual and creative capital at the expense of social capital.
Should we, as a society, expect engineers to meet meet the same social standards as say, Baristas? The job market favors the young, socially adept, and politically wired people. But engineers are a different – we all need them to be exactly the way they are in order for the rest of us to be who we are. If engineers were “marketers” they would either cease to be engineers or marketing would cease to be manipulative.
Who’s your money maker?
Engineers are responsible for nearly every penny of value stored and exchanged in a modern economy. Roads, infrastructure, medical devices, food production, software, hardware, housing, transportation – anything worth anything is in some way touched by God and an engineer. Engineers are responsible for creating the tangible value we enjoy so dearly but is also so easily corrupted by others.
Who is squandering whom?
So when I hear comments like; “there are so many engineers on the streets that employers have their pick of the crop”. I ask myself, “how exactly did that employer become an employer without engineers”? How does any employer expect to remain an employer without the direct, strategic, and honorable deployment of engineering assets? How does a country expect to arise from financial crisis and insurmountable debt obligation without elevating their engineers to “First-Responder” status?
I heard a story that Haiti is so poor, they would chop down a fruit tree for charcoal. Squandering engineers is like killing the golden goose. Every single engineer in America should be cherished. Every single engineer should have their pick of most qualified employers, not the other way around. Every single engineer should have a job waiting for them as soon as the prior one is finished. Engineers should be paid money, real money – not some “proxy” for money.
The Patent system is slow, static, and expensive. Sure it’s great for corporations and wealthy institutions, but what about the rest of us? How do we get paid for our intellectual property? We make rapid fire decisions every day that can make or break markets – who’s got time to patent?
Or maybe the last thing that Wall Street wants is for Engineers, Architects, designers, and creative people to get “royalties” on their work. That is What Wall Street does, they collect the royalties of the creative people in America….until now. Social media is a social contract, IP is our currency.