a new solution to an old problem Simon Walker Human Ecology Ltd 2011 based upon Human Ecology Theory Simon P Walker Revd MA Oxon MTh BTh Works as a consultant speaker and advisor to businesses and charities in the UK and internationally and is the founder of Human Ecology Ltd and T ID: 430549
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Slide1
HELICAL CAPITALISMa new solution to an old problem
Simon Walker
© Human Ecology Ltd 2011
based upon Human Ecology TheorySlide2
Simon P Walker, Revd. MA Oxon, MTh, BThWorks as a consultant, speaker and advisor to businesses and charities in the UK and internationally and is the founder of Human Ecology Ltd and The Leadership Community.Author of Human Ecology Theory and its applications to organisations, behaviours and markets, The Undefended Leader Trilogy and The Undefended Life.
Ordained Anglican minister who taught at Wycliffe Hall for seven years.
© Human Ecology Ltd 20102
AuthorSlide3
Helps us understand the behaviour of social systemsHelps us understand how ideas are adopted and move through societyHelps us understand the psychology of buying and selling- e.g. the market
Human Ecology Theory:
a theory of social space © Human Ecology Ltd 2010
3Slide4
Presentation and Reservation (P/R)Presentation: newsletter, classrooms, happy kids, resultsReservation: planning, assessment, health and safety
Expanding & Consolidating
(X/C)Expansion: New curriculum, new markets (Far East)Consolidation: Better teaching, fewer exam failsStrong and Weak force
(S/W)
Strong: Rules, discipline, standards, uniform
Weak: Respect, encouragement, friendships, pastoral care
How does Human Ecology do this?
Isolates
3 essential
movements
found
all
populations
e.g. A school
© Human Ecology Ltd 2011
4Slide5
Presentingnewsletter, classrooms, happy kids, results
Movement 1:Presenting and Reserving
© Human Ecology Ltd 2011
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Reserving
planning, assessment,
health
and safetySlide6
ExpandingNew curriculum, new markets (Far East)
Movement 2:
Expanding and Consolidating© Human Ecology Ltd 2011
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Consolidating
Better teaching, fewer exam failuresSlide7
Strong forcesRules, discipline, standards, uniform
Movement 3:
Strong and Weak Forces© Human Ecology Ltd 2011
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Weak forces
Respect, encouragement, friendships, pastoral careSlide8
© Human Ecology Ltd 20108
A social ecologyof a school
PSC
Head, exams,
uniform
PSX
Role
models,
icons
, success
stories, targets
PWX
Opportunities, coaching,
learning relationships
PWCBelonging, friendship groups, teamsRSCRules, values
, boundaries, expectationsRSX
Vision, inspiration, knowledge gainRWX
Service, support, struggle
RWC
Failure,
absence, drop out, loss
Slide9
© Human Ecology Ltd 20109
Human Ecology Theory describes the ecology of any population
PSC
Dominant
norm
PSX
Iconic
celebrity
PWX
Aspirational
population
PWC
Mass populationRSC Stabilising
groundrulesRSX
Radical innovators
RWX
Frustrated and impotent
RWC
DiscardedSlide10
© Human Ecology Ltd 201010
So What?
In order to understand why capitalism is broken we need to understand how the market functions within a population Slide11
The monetising of the adoption of an idea across
a population
© Human Ecology Ltd 2010
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The Market: A DefinitionSlide12
PSC
Dominant
normPSX
Iconic
celebrity
PWX
Aspirational
population
PWC
Mass
population
RSC Stabilising groundrulesRSX Radical innovatorsRWX Frustrated and impotent
RWC Discarded
© Human Ecology Ltd 2010
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The adoption pattern is a wave moving through our social ecology
Essential Idea:Slide13
© Human Ecology Ltd 2010
13Enjoy a cuppa this morning?Slide14
© Human Ecology Ltd 201014
The adoption of the Tea Bag
PSC
Domination
96% in 2003
PSX
Loose
leaf tea
Expansion
128 million/year!
PWX
Demand 1960’s Life get’s faster!PWC
Adoption Tetley adverts: Cheap, quick
RSC Stabilisation
Tetley Perforated
tea bag 1964
RSX
Origination
Silk tea bag 1903, paper, perforatedRWX Frustration/desire Too slow, too much work in fast world!RWC Discard/DepletionSlide15
© Human Ecology Ltd 201015
The Rise of Windows
PSC
Domination 2000
Explorer
PSX
Mainframes
Expansion 1995
Office
PWX
Demand 1990
Windows
PWC Adoption 1981IBM partnershipRSC
Stabilisation 1980MS DOS
RSX
Origination:
1979 BASIC
RWX
Frustration/desire:
1970’s Mainframes
RWC
Discard/DepletionSlide16
© Human Ecology Ltd 201016
Evolution by Natural Selection
PSC
Domination
Secularism 1980’s-
PSX
Lamark
, 7 day creation
Expansion
Public education 1960’s-
PWX
Demand Politics of 1930’sPWC
Adoption Mendel rediscovered 1902
RSC Stabilisation
Huxley inter
al. 1860
RSX
Origination
Darwin 1859RWX Frustration/desire: Geology/Paleontology 1820’sRWC Discard/DepletionSlide17
© Human Ecology Ltd 201017
Entrepreneurialism follows the same pattern
PSC
Domination
PSX
Expansion
PWX
Demand
PWC
Adoption
RSC Stabilisation
RSX
OriginationRWX
Frustration/desire
RWC
Discard/DepletionSlide18
© Human Ecology Ltd 201018
The Adoption wave has two phases
Phase One
Phase TwoSlide19
© Human Ecology Ltd 2010
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Phase One happens beneath the surface (R= Reserved)
Hidden
Investment phase
Growth and developmentSlide20
© Human Ecology Ltd 2010
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Phase One has three distinct stages
Stage 2:Origination of the novel idea
Stage 1: Frustration with the current situation
Stage 3: Stabilisation of the technologySlide21
© Human Ecology Ltd 201021
e.g.Tea Bags
PSC
PSX
PWX
PWC
RSC
Stabilisation
Tetley Perforated tea bag 1964RSX
Origination
Silk tea bag 1903, paper, perforatedRWX
Frustration/desire
Too slow, too much work in fast world!
RWC
Discard/DepletionSlide22
© Human Ecology Ltd 201022
Phase Two happens above the surface (P= Presented)
Visible
Return on Investment phase
Scale and Duration depends on base of Phase OneSlide23
© Human Ecology Ltd 2010
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Phase Two also has four distinct stages
Stage 7: Saturation and domination
Stage 6: Expansion of delivery
Stage 5:Demand for the technology
Stage 4: Adoption of the technologySlide24
© Human Ecology Ltd 201024
Phase Two for Tea Bags
PSC
Domination
96% in 2003
PSX
Expansion
128 million/year!
PWX
Demand
1960’s Life
get’s faster!
PWC
Adoption Tetley adverts: Cheap, quick
RSC
Stabilisation
Tetley Perforated
tea bag 1964
RSX Origination Silk tea bag 1903, paper, perforatedRWX Frustration/desire Too slow, too much work in fast world!RWC Discard/DepletionSlide25
© Human Ecology Ltd 201025
What causes a wave’s decline?
BREAK: Weakness in the neck of the wave
DROP: Over-weighted head of wave
DRAG: Under-weighted base of waveSlide26
© Human Ecology Ltd 201026
DRAG: Under-weighted base of wave
Structure begins to fall apart
Idea lacks originality
Idea solves old problem
Idea increasingly
discredited
Slide27
DRAG- can create collapse
Lack of Strong Regulatory Foundation (RSC)
Contributed to financial collapse
© Human Ecology Ltd 2010
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RSC phases (regulation) too thin to support wave aboveSlide28
© Human Ecology Ltd 201028
BREAK : Weakness in the neck of the wave
Adoption not extensive
Technology not ready
Idea is ahead of its time
Slide29
BREAK: Overhyped market
Failure for market to be ready (PWC) e.g.
Dot.com
© Human Ecology Ltd 2010
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PWC too narrow: market not ready for acceptance
RSX broad: online retail the future solution
RSC too narrow- broadband and online stores not robust enoughSlide30
© Human Ecology Ltd 201030
DROP :Over-weighted head of wave
Suppression of critique/supreme overconfidence
Saturation of technology
Slide31
DROP: Collapse of investment banking
© Human Ecology Ltd 2010
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Over-extended PSC phase of wave through financial technology hubris
Expected wave profile if PSC not overextendedSlide32
© Human Ecology Ltd 201032
Are waves a good thing?Slide33
© Human Ecology Ltd 201033
Waves are inevitable: It is how human creativity progresses
PSC
Domination
PSX
Expansion
PWX
Demand
PWC
Adoption
RSC
StabilisationRSX
Origination
RWX
Frustration/desire
RWC
Discard/DepletionSlide34
© Human Ecology Ltd 201034
Problem : Dominance often results in suppression rather than support
PSC
DOMINATION- King!
PSX
EXPANSION- Rich fool!
PWX
Demand
PWC
AdoptionRSC
Stabilisation
RSX Origination
RWX
Frustration/desire
RWC
Discard/DepletionSlide35
© Human Ecology Ltd 201035
This is both unjust and unproductive
PSC
PSX
PWX
PWC
RSC
RSX
RWX
RWC
Lack of growth zoneSlide36
© Human Ecology Ltd 201036
It is driven by the twin emotions of fear and greed
PSC
PSX
PWX
PWC
RSC
RSX
RWX
RWC
FEAR
GREEDSlide37
© Human Ecology Ltd 201037
But this is the history of
Western Capitalism Slide38
© Human Ecology Ltd 201038
Structural engineering could change this outcome
PSC
DOMINATING PHASE
PSX
EXPANSIVE PHASE
PWX
Demand
PWC AdoptionRSC
Stabilisation
RSX
Origination
RWX
Frustration/desire
RWC
Discard/Depletion
Power of PSC and PSX used to pull up RWX and prevent RWCSlide39
© Human Ecology Ltd 201039
From wave to helix
PSC
INVESTING PHASE
PSX
INSPIRING PHASE
PWX
Demand
PWC Adoption
RSC
StabilisationRSX
Origination
RWX
Frustration/desire
RWC
Discard/DepletionSlide40
The Jubilee follows this pattern
Jubilee = a system of interlocking waves or helices preventing social abuse
Jewish society
Period of service for slaves
Slave release
Slave ownership
© Human Ecology Ltd 2010
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Period of release for slaves
Blue waves and green waves tied to each otherSlide41
Microfinance: strengthening the core
Microfinance get’s close placing social trust at heart of banking
High strength core of accountability and social cohesion and dignity
Pay back loans and can apply for more
Lenders invest
© Human Ecology Ltd 2010
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Entrepreneurs borrow
Loans recycled
Lenders reinvest Slide42
NFL: An example of for-profit market
The league
Superbowl
The draft
Profits from bowl back into league
Salary cap
© Human Ecology Ltd 2010
42Slide43
Helical Capitalism Key Principles
Trust + generosity not fear + greed
Long term lending – several cycles
Close proximity between investor and business
Investor takes stake in business
© Human Ecology Ltd 2010
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Fastest growing bank in UK
No bonuses
Only local relationship between lender and business
Long term rewards for executives
© Human Ecology Ltd 2010
44Slide45
When fear and greed drive adoption, the resulting wave pattern is inevitableThe Kingdom is a place in which fear and greed have no placeKingdom people have the freedom to break the cycles of the marketThe church must embody a different economic if it is to witness to the Kingdom
© Human Ecology Ltd 2010
45The Economics of the KingdomSlide46
© Human Ecology Ltd 2010
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Further Reading
www.undefended.orgSlide47
Disclaimer© Human Ecology Ltd 2010
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The trademarks and service marks contained herein are the property of Human Ecology Ltd.This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Human Ecology Ltd.