Title: A NEW ROLE FOR THE BANKS IN THE EUROPE OF THE FUTURE
1A NEW ROLE FOR THE BANKS IN THE EUROPE OF THE
FUTURE
- Marc LUYCKX GHISI
- Dean of Cotrugli Business Academy
- Former member of the EU Forward Studies Unit
2CHAPTER 1EU ECONOMY IN A TIME OF DEEP
TRANSFORMATION
3P. Drucker Transformation
- 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.
Butterworth Heinemann, 1993, 2001, p.1.
4One 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
(1997), Founder of the World Business Academy
5Transformations five levels
- Humanity is in danger of collective death
- End of the Patriarchal values (CCC)
- End of modernity---Transmodernity post secular,
flat, tolerant, new level of responsibility and
consciousness. - Knowledge society as a turbo of change
- Crisis of all institutions. EU the First
transmodern structure worldwide...
6Transition to Transmodern
Death ?
7NEW POLITICS AND NEW ECONOMY ARE THERE...
- We have at our disposal, a new political
structure (transmodern) which is the EU. But
unfortunately we still continue to consider EU
with modern eyes... - We have a new economy in our hands (Lisbon
strategy), but we tend to consider it with
industrial eyes...
8CONSEQUENCE POLITICAL CHOICES (I)
- EU should be presented as the 1 Transmodern
political project of the XXI century. - Politicians should dear to say that we are like
at the beginning of a political Renaissance... - They should call people to reflect worldwide on
the new sustainable structures of the future in
the Knowledge economy. (Lisbon Strategy !)
9CONSEQUENCE ECONOMIC CHOICES (I)
- Politicians and economist should have the courage
to say that we are not anymore in the industrial
capitalist period. (max 50) - We are already (50) in the knowledge economy
which is post capitalist (Drucker). - But nobody dears to say the truth to the
citizens. Although they know it ....
subconsciously.
10CONSEQUENCE ECONOMIC CHOICES (II)
- And this knowldege economy (Lisbon Strategy of
the EU 2000-2010), has to be oriented towards
sutainability and social inclusion. (Goteborg and
Barcelona Summits) - A debate with the citizens is needed and urgent.
- But this presupposes that the economists and
politicians understand the transition from the
free trade industrial vision to a new
knowledge economy approach.
11CHAPTER 2WHAT IS KNOWLEDGE ECONOMICS?(Level
4! )
12DEFINITIONS
- Data what is on the web, unorganised
- Information is already sorted by google.
Overabundance. - Knowledge is digested by human brain.
- Human brain and networks are the NEW TOOLS of
PRODUCTION - Wisdom, Knowledge are rare. Not enough.
13A NEW WORLD...
- New tool of production human brain
- New CEO Enabling creativity and sharing, Caring
for humans new human-centered management - New value creation process adding K to K.
- New Trade from Free Trade to Free Sharing
- New measurements qualitative intangibles
- New strategy beyond war win-win not win-loose
- New definition of Progress qualitative
- Beyond patenting towards Open Source
- Beyond pyramids towards networks
- Capitalizing on cultural capital gender capital
14TWO SCENARIOS
- Post industrial -capitalist Vision human capital
- Human centeredness
- Real Respect
- Machine at service
- Keeping the industrial vision machinepatent
- Manipulation of Human Mind
- Engineering of Human Mind
- Machine is First
151. NEW TOOL OF PRODUCTION
- The tool of production is not anymore machine
technol. - It is human brain Networks sharing knowledge in
order to create new K. - This new tool of production is more important
than capital and technol. - Hence Post capitalist society!
162 NEW CEO FUNCTION
- Old CEO command, control, capture
- New CEO
- enables the creativity of his human capital
tool of Production - Enables and creates networks around his team.
Cannot control networks! - Care for the intangible assets brand
172. CEO AND NEW MANAGEMENT
- Human capital is central because it is the NEW
tool of production Please come back! - Thus Management shifts 180 towards human
centeredness more creativity-centred, gender
culture centred.
183. NEW VALUE CREATION PROCES
- 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
194. 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.
204. BEYOND TRADE (II)
- 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
- Immetrialization of prod.
- Qualitaitve growth
215. A NEW 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 - IF EU economy is 45 in the knowledge eonomy,
intangibles account for 45 !.
225. A NEW SYSTEM OF MEASURE. 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,
235. A NEW SYSTEM OF MEASURE. INTANGIBLE ASSETS
(II)
- Relation with civil society
- Relation to environment
- Relation to our collective Future and
sustainability - But also quality of the Networks
245. 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 Mens Wear USA. World Business
Academy, Spirit in Business. - See also Neskey www.neskey.com
255. Intangible indicators grow
265. GROWING IMPORTANCE OF INTANGIBLE ASSETS (II)
276. NEW BUSINESS STRATEGY/ WIN-WIN
- Old business strategy is warlike. Battlefield
images are frequent. Patriarchal values dominate
win-loose - New business strategy much less violent,
competition through collaboration is the new
motto. - There could be a conflict between 2 visions of
competition inside the EU, and the Commission... - Knowledge behaves like love! Capital NOT !
287. NEW DEFINTION OF PROGRESS
- The industrial modern defintion of progress is
quantitative. More is better. - This defintion is UNSUSTAINABLE
- The knowledge society implies a qualitative
defintion of progress. - Good new this allows a reorientation of our
societies towards sustainability!!
298. BEYOND PATENTING
- The whole of the industrial production system is
based on secrecy and patenting. I have this
technology and you have not. So I win! - Information and knowledge always leak
- In the knowledge economy we will NOT be able to
maintain secrecy, neither patenting. - See generic medecines, I-Pod music etc,.
309. BEYOND PYRAMIDS TOWARDS NETWORKS
- Pyramids are the normal structure of all
organizaions. - But knowledge is created only in networks. This
is the form that could prevail in the XXIst
century. - Pyramids are all in crisis everywhere. In
Govenrments, Military, Churches, NGO etc.
3110. CAPITALIZING ON CULTURAL AND GENDER CAPITAL
- Paradoxically culture and gender diversity
becomes important as they feed creativity - The knowledge management is thus potentially
socially inclusive and sustainable - The Lisbon strategy wsa thus excellent and
forward looking.
32CONCLUSION NEW VALUES
- Underlying values needed in the industrial
capitalist society are freedom, initiative,
ceativity - NEW Values are needed
- Freedom (of sharing) beyond patents...
- Solidarity, Caring, Respect for the Earth..
- 360 Transparency
- Concern for our Common Good and future
33CHAPTER 2THE BANKS IN THIS KNOWLEDGE ECONOMY
34EXAMPLE ANZ BANK
- Australia New Zealand Bank had problems of
credibility... See http//www.anz.com/aus/values/m
essage.asp - The CEO has embarqued in Corporate Social
responsibility, Sustainability and Human capital
enhancement. - Meditation has been offered to each empoyee..
- ANZ has received an award of Spirit in Business
association...
35BANKS IN THE KNOWLEDGE ECONOMY I
- In the Knowledge economy, intangible assets
(personnel, customers, sustainability, and social
inclusion...) are becoming 50 of the assets. - What distinguishes your Bank from others are
mainly the intangible assets
36BANKS IN THE KNOWLEDGE ECONOMY II
- In the industrial economy Banks were acustomed to
look only at tangible assets. - This is not enough today
- One must also look at the intangible assets
37BANKS IN THE KNOWLEDGE ECONOMY III
- In the industrial economy we were in an offer
economy Buy my new gadget ! - In the knowledge economy we are entering into an
Demand economy. - This means that the Banks will be obliged to
respond the implicit demand of the citizens
worldwide.
38BANKS IN THE KNOWLEDGE ECONOMY 4
- Citizens implicitly demand
- HUMAN VALUES and friendliness
- SUSTAINABILITY Is your/our Bank part of the
problem of part of the solution? - SOCIAL INCLUSION Is the Bank helping the poor?
- WISDOM
- Citizens want also to spend in an intelligent way
avoiding the gadgets and stupid spending. Can the
Bank help? - Citizens want to make good and wise
investments. - TRANSPARENCY Is the Bank honest and transparent?
39CONCLUSION
- Banks may choose the manipulation scenario
- If they choose the human centered-sustainable
path, they should improve - Human values with personnel and clients
- Clear actions for sustainabilty and social
inclusion - Real and efficient help towards WISE investments
- 360 transparency
- This is a question of survival.
- Otherwise other Banks will do it (ANZ ?) and
invade the EU market with a new image
40Some good Books
- Peter DRUCKER Post capitalist society, Harper
Business, New York, 1993. - Verna ALLEE The future of knowledge Elsevier
Science, 2003, USA. - Harvard Business Review on Knowledge management.
2006. Book with 8 articles. - Paul T KIDD (ed.) European visions for the
Knowledge Age a quest for new horizon in the
information society Cheshire Henbury, UK, 2007.
41Good Books (II)
- Jeremy RIFKIN The European Dream when Europes
vision of the future is silently eclipsing the
American dream Penguin 2004. - Ray ANDERSON Mid Course correction 1998.
www.chelseagreen.com (Interface) - World Business Academy www.worldbusiness.org
- Neskey on intangible measurements
www.neskey.com