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Willis Consulting LLC
Purpose Driven CapitalismPlus – Reimagining
Capitalism as a 5 Dimensional Market System with
a 5M Mindset and 3V heartbeat!
~ The Invisible Hand’s Purpose Seed, manifesting itself as a 5D
Market system with a 5M (Meta Events, Means, Metrics, Method &
Mediation) mindset, yielding Triune Shared Value (Shareholder+
Societal + Purpose Driven Motivation/emotion/cultural value)~
Charles Prabakar Executive Global Partner/Managing Director
(Draft For Discussion Purposes Only )
“Capitalism Plus” at a glance…
Some of the complications are both strategic and
structural. Let’s start with some strategic root
causes, and they include, but not limited to are -
Single dimensional capital market mindset.
Lack of standardized causality between
tangible market value and the intangible
expectation building abilities.
Lack of purpose driven motivation and so,
we trade value as opposed to creating
them.
Structural root causes include , but not limited to
are
Insufficient resistance mechanisms to
effectively manage the external expected
& unexpected events .
Insufficient mediating/ regulating agencies.
Ineffective inherent design to equitably
enjoy and bear value by the larger society.
We suggest a Capitalism
Plus approach by re-
imagining the spirit and
essence of Capitalism,
with a profound seedal
chain principle, that is
redesigned as a five
dimensional value market
system(Human Capital,
Intermediate Goods,
Equity capital, Product &
Purpose) with a
fundamentally patient 5M
seasonality mindset (Meta
events, Means, method,
metrics and Mediation) ,
that is then executed
with a socially
accountable Triune
Shared Value (S-Holder,
Societal emotional &
cultural value) heartbeat!
While "Capitalism” is
practiced differently in
different parts of the world,
most practitioners agree,
that capitalism in its current
form is not designed to
sustain and withstand
another financial
meltdown as that of 2008-
10 time frame, and so, the
need of the hour is a
profoundly principled,
fundamentally patient and
socially accountable
capitalism ,as echoed by
Gary Hamel in his MIX
challenge, to meet the
ever changing business
needs of the 21st century,
social media driven,
digitally connected world!
“Trading Value as opposed to creating them fresh”, is the primary challenge of
Capitalism, that is practiced in its current form!
Situation Complication Resolution
Re-imagine the spirit and
essence of Capitalism by
resetting it with a profound
Seedal Chain Principle
Reframe it as a 5 dimensional
Value market system with a
fundamentally patient 5M
Seasonality mindset
Execute it with the socially
accountable Triune Shared
Value (TSV) heartbeat
(Sequel)
Capitalism Re-imagined using Nature’s Seedal Chain (Seed-
Season-Sequel) Principle
Capitalism is re-imagined
as Force - Energy- Power in
Space -Matter-Time
dimensions!
Capitalism is redesigned
as 5 Value Markets with a
5M mindset!
Capitalism’s value is reaped
as Triune Shared Value (TSV)!
It is time to re-imagine the spirit and essence of Capitalism with a profound
seedal chain principle, reframe it with a fundamentally patient 5M seasonality
mindset and execute with a socially accountable TSV heartbeat!
1 2 3
Seed Energy /Matter (Creator/
Orchestrator)
Seasonal Power/Time (Redeemer/
Sustainer)
C-Plus’Emotion/
Motivation Driven
Purpose Seed
Principle Sequel Force/Space (Encourager/
Disruptor)
Market motivation energies (i.e. internal
motivation/expectation to get wealthy),
Resources and capital flow etc.
Social/
Political
Institutions,
Religion,
Philosophies,
Worldviews,
ideology etc.
Banks/money making
Fed type institutions,
trading events,
population migration/
shifting events,
environmental events,
labor force shifting
events, rise of state or
other forms of capitalism,
radical ideology shift
movements(Arab spring,
occupy wall street etc),
and natural
disaster/pandemic etc.)Shareholder Value
Capitalism Plus Creating Triune Shared Value (TSV)
Re-imagine Capitalism’s Purpose Energy Seed with its Seasonal Power & Disruptive Forces!
Force Oriented
Disruptive EventsPower Oriented
Sustaining Events
Energy Oriented Orchestrating Events
Capital Market
IG/RM Market
Labor Market
Product Market
Shareholder Value= Profit x (1-g/ROIC)/ (WACC-g)
Profit
g
ROIC= Margin x Velocity
CV=Jobs-to-
be done/ Price
Human Capital
Incubator/In
termediate
Goods(IG/
RM) Capital“Jobs-To-Be-
Done” Product
Capital
Commercial/
Commodity
Equity Capital
Motivational
Purpose
Seed Capital
Seed Energy /Matter (Creator/
Orchestrator)
Seasonal Power/Time (Redeemer/
Sustainer)
C-Plus’Emotion/
Motivation Driven
Purpose Seed
Principle Sequel Force/Space (Encourager/
Disruptor)
Market motivation energies (i.e. internal
motivation/expectation to get wealthy),
Resources and capital flow etc.
Social/
Political
Institutions,
Religion,
Philosophies,
Worldviews,
ideology etc.
World bank /money
making Fed type
institutions, trading
events, population
migration shifting events,
environmental events,
labor force shifting
events, rise of state or
other forms of capitalism,
radical ideology shift
movements(Arab spring,
occupy wall street etc),
and natural
disaster/pandemic etc.)Shareholder Value
Capitalism Plus Creating Triune Shared Value (TSV)
Reap the value of Capitalism Plus, in three TSV dimensions!
Force Oriented
Disruptive EventsPower Oriented
Sustaining Events
Energy Oriented Orchestrating Events
Seed Energy /Matter (Creator/
Orchestrator)
Seasonal Power/Time (Redeemer/
Sustainer)
C-Plus’ Emotion/
Motivation Driven
Purpose Seed
Principle Sequel Force/Space (Encourager/
Disruptor)
Market motivation energies (i.e. internal motivation/expectation to get wealthy),
Resources and capital flow etc.
Social/ Political
Institutions, Religion,
Philosophies, Worldviews,
ideology etc.
Banks/money making Fed type institutions,
trading events, population migration/
shifting events, environmental events,
labor force shifting events, rise of state or
other forms of capitalism,
radical ideology shift movements(Arab spring, occupy wall street etc),
and natural disaster/pandemic etc.) Shareholder Value
Re-imagine the spirit and essence of Capitalism by resetting it with a profound Seedal Chain Principle
Re-imagine Capitalism’s Purpose Energy Seed with its Seasonal Power & Disruptive Forces!
Force Oriented
Disruptive Events Power Oriented
Sustaining Events
Energy Oriented Orchestrating Events 1
Re-imagine the spirit and essence of Capitalism by resetting it with a profound Seedal Chain Principle
• As it turns out, the best way to re-imagine capitalism is - as a
purpose driven Capitalism Plus, in five dimensions -
• First and foremost, it is all about re-imagining/regrouping the Meta
market’s expected and unexpected events in Force, Energy and
Power dimensions (or space-matter-time dimensions in a larger
universal context) using nature’s energy management principle, to
help design the right type of resistance mechanism for the right
type of event.
– Energy oriented events to be handled with matter dimension
based proactive efficient replenishment mindset
– Force oriented events to be handled with Space/distance
dimension based proactive resistance mindset i.e. (note :
Force=Energy/distance)
• Expected events or manmade events to be handled
with sufficient elastic cushion space to re type resistance
mechanism to bounce back from the impact.
• Unexpected event or Messiah made unexpected events
must have plan B type alternate path of execution to
bounce back quickly.
– Power oriented events, to be handled with time dimension
based proactive effective channeling mindset. (note :
Power=Energy/Time)
• Policies from Social/political institutions, religion, ideology
etc. need to have a timely lever to channel/control its
dosages and its impact on the system.
1
• Reimagining the Means - i.e. from the
current shareholder value focused
multiples method at the ticker level and
GDP at the country level to a three
dimensional Triune Shared value(TSV)
mindset i.e. Stakeholder value +Societal
Value+ Emotional/Cultural value
• Reimagining the Method i.e. from single
dimensional capital market system to a
five market system with a causal chain
among them.
• Reimagining the Metrics with three
dimensional TSV value formulas that are
manifested in 5 different intermediate
forms within each of the five market
systems.
• Reimagining Mediation as self regulated
mechanism using “inside-out”
emotional/cultural motivational energy
driven ethical mindset, with minimal government involvement.
Capital Market
IG/RM Market
Labor Market
Product Market
Shareholder Value= Profit
x (1-g/ROIC)/ (WACC-g)
Profit
g
ROIC=
Margin x
Velocity
CV=
Jobs-to-
be done/
Price
Human
Capital
Incubator/In
termediate
Goods(IG/
RM) Capital “Jobs-To-Be-
Done” Product
Capital
Commercial/
Commodity
Equity Capital
Motivational
Purpose
Seed Capital
Reframe it as a 5 dimensional market system with a fundamentally patient 5M Seasonality mindset
2
Reframe it as a 5 dimensional Value market system with a
fundamentally patient 5M Seasonality mindset
• It all comes down to adding four additional virtual markets on top of the equity capital exchange ( i.e. primarily cash flow value driven)– and link them all together with causality - as outlined in the picture above and explained in detail in our firm’s Purpose driven strategic planning framework (http://www.managementexchange.com/story/strategic-planning-purpose-driven-way-using-nature%E2%80%99s-seedal-chain-principle)
– Purpose equity capital exchange model ,based on the formula -> Purpose value= Profit x (1-g/ROIC)/ (WACP-g)
– Human capital equity exchange, based on human capital growth, per one of my recent hack at MIX site (http://www.managementexchange.com/hack/reforming-performance-management-systems-%E2%80%93-virtual-purpose-equity-vizpity%C2%A9-exchange-way)
– Intermediate Goods Market or Value chain equity exchange based on the formula ->ROIC= Margin x Velocity
– Product Market or customer “Job to be done” exchange, based on the formula -> Consumer/customer value=Jobs-to-be done/Price
– Financial capital market which is today’s’ version of capitalism based on the formula ->Share holder value= Profit x (1-g/ROIC)/ (WACC-g)
•How does these five markets work together from the “day in the life” standpoint? Here are few possible implementation configurations •Tightly coupled “weight factor rating” model, where four Intangible Markets (Purpose, Human, Intermediate Goods and Product market) are configured as a public opinion/rating based markets, with direct linkage to the tangible Capital Market. In other words, traders are expected (mandatory) to submit a “weight factor percentage allocation” of their buy price, among the five markets, say (15%-25%-15%-15%-25%) respectively, which would give a clear indication of the motivation behind their trade (i.e. which market among this 5D market is motivating them to invest on this stock). For example, traders who believe in the management and talent of the company will assign more weight to human market, whereas, traders who believe in the purpose/vision of the company will assign more weight for purpose market and so on and so forth. •Loosely coupled “weight factor rating” model, same as the previous model but the weight factor is decided by the company during the IPO. •Reverse weight/value allocation to the four intangible market based on a pre-established weight factor distribution, say, (10-30-10-10-50), as decided by the public opinion/rating on a day to day basis. •Transparent Internal company metrics driven weight allocation model linked to capital market value (multiples method and/or McKinsey’s Zen valuation formula) using our CPM type system.
2
Seed Energy /Matter (Creator/
Orchestrator)
Seasonal Power/Time (Redeemer/
Sustainer)
C-Plus’ Emotion/
Motivation Driven
Purpose Seed
Principle Sequel Force/Space (Encourager/
Disruptor)
Market motivation energies (i.e. internal motivation/expectation to get wealthy),
Resources and capital flow etc.
Social/ Political
Institutions, Religion,
Philosophies, Worldviews,
ideology etc.
World bank /money making Fed type
institutions, trading events, population
migration shifting events, environmental events,
labor force shifting events, rise of state or
other forms of capitalism,
radical ideology shift movements(Arab spring, occupy wall street etc),
and natural disaster/pandemic etc.) Shareholder Value
Execute it with the socially accountable Triune Shared Value (TSV) heartbeat (Sequel)
Reap the value of Capitalism Plus, in three TSV dimensions!
Force Oriented
Disruptive Events Power Oriented
Sustaining Events
Energy Oriented Orchestrating Events 3
Execute it with the socially accountable Triune Shared Value (TSV)
heartbeat (Sequel)
• Leveraging Michael Porter’s Creating Shared Value (CSV) definition – we
see the following TSV definition emerging –
• TSV is a Purpose Capital driven Motivational/Emotional/Cultural energy
value driven policies and practices that enhance and sustain the
collaborative competitiveness of a company while simultaneously
advancing economic and social conditions in the communities in which it operates.
– CSR = Shareholder value+ Societal value (With no direct linkage to
CA)
– CSV = Shareholder value+ Societal value (With direct linkage to CA as
defined by Michael Porter)
– TSV = Purpose Motivational/emotional energy driven cultural value +
Shareholder value+ Societal value (With direct linkage to SCCA)
3
• One might ask - while it sounds great in theory, what are its pragmatic implications?
• Among many, one key practical implication is Capitalism Plus, by its design, inherently will encourage and
reward those companies with bold and profoundly principled, fundamentally patient and socially accountable
ideas and proposals (e.g. VizPlanet platform), that would work for 10 billion people (as opposed to the current 6
billion), with a triune shared value (TSV) mindset, using multiple forms of capital—purpose, human, IG, product,
and equity.
• In other words, Capitalism plus, in its essence is a purpose driven, three dimensional value balancing market
system (i.e. the “inside-out” motivational/emotional energy value balancing the remaining two “outside-in”
stakeholder and societal value energies) using a 5 dimensional market system, with a collaborative 5M (Meta
events, Means, Mechanism, Methods and Metrics) mindset.
• Simply Put, Capitalism Plus, encourages every citizens to participate in the Free market Capitalism driven
prosperity journey by
– Planting their “purpose driven motivational energy seed” ideas, using nature’s profound seedal chain
principle.
– Germinate itself into a five dimensional value market system (Purpose Market, Labor/Human Market,
Intermediate Goods Market, Product Market and Equity Market) with a fundamentally patient ,5M
seasonality mindset (Meta market events, Means, Method, Metrics and Mediation).
– Yielding a socially accountable Triune Shared Value Portfolio(Shareholder, Societal and emotional/cultural
value)!
Conclusion
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