HUMAN RELATIONS : THE KEY OF COMPETITIVENESS IN THE EU LISBON STRATEGY

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HUMAN RELATIONS THE KEY OF COMPETITIVENESS IN
THE EU LISBON STRATEGY
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CHAPTER 1A SHARP TRANSFORMATION

• (Peter DRUCKER)

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P. 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. p.1.

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Transition to Transmodern
Death ?
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One 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, Founder of the
  World Business Academy (1997)

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CHAPTER 2 WHAT IS KNOWLEDGE SOCIETY?
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ONE EXAMPLE The EU web master

• One small entreprise won the bid for the EU Web.
  Big contract.
• Capital and technology are 10
• Human capital 90
• Management is humble
• Facilitator
• Networker
• Caring for HR Please come back tomorrow!

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EXAMPLE II

• Entreprise was sold. Very expensive.
• New management was industrial arrogant,
  pyramidal. Failure.
• Return of the old CEO!
• Back to new HR management!
• SUCCESS again.
• Crucial importance of HR management

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DEFINITIONS

• Data what is on the web, unorganised
• Information is already sorted by google. Too
  much
• Knowledge is digested by human brain. not
  enough
• Wisdom is rare. Not enough. New mission of the
  bsuiness.

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DEFINITIONS Info-Knowledge

• FREE TRADE (ICT S)
• Industrial Pyramid
• I.C.T. (technology)
• Pyramids
• FREE TRADE
• Unemployment
• Pollution
• Quantitative growth

• FREE SHARE (KS)
• Post-industrial-capit.
• A new Society
• Network value creation
• FREE SHARING
• self-creation of jobs
• Immetrialization of prod.
• Qualitaitve growth

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Knowledge society Post capitalist? (Peter
Drucker 1993)

• Value creation is linked to knowledge applied to
  knowledge. new tool of production
  gtcapitalgttechnol.
• Quality of knowledge is more important than
  quantity. Progress becomes more qualitative than
  quantitative.
• MEASUREMENT is more qualitiative Two Schools of
  economists

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Knowledge society Post capitalist? II

• Knowledge is increased only by sharing in a
  network. This is an inclusive logic. (like love
  !).
• From FREE trade towards FREE sharing
• Thus crucial importance of being in a good
  network in order to increase knowledge by
  sharing. (See Verna ALLEE)

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Knowledge society III

• Secrecy and patenting are in crisis
• The global strategy is shifting
• from win-loose (industrial) to Win-Win
• From exclusion(industrial) to inclusion
• From command and control to enabling creativity
  and sharing

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The Human capital

• Management shifts 180 towards human
  centeredness more creativity-centred, gender
  culture centred.
• The Common good (human) aims of the enterprise
  towards society at large are becoming more
  important because of reputation brand and
  intangible assets.
• Example ASCII which manages EU site
  www.europa.eu.int

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HUMAN RELATIONS CRUCIAL

• Caring for Human relations are at the source of
  value creation.
• Because this is enhancing human capital
• HR policies are thus becoming central
• Unless the negative scenario of manipulation of
  human brain becomes effective

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INTANGIBLE ASSETS

• Intangible assets is a new concept invented
  by Karl Erik SVEIBY (Sweden)
• They are becoming more and more important in the
  knowledge society
• Because the knowledge society is about knowledge
  which is intangible and qualitative.

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INTANGIBLE ASSETS II

• Intangibles assets
• Know how,
• Reputation,
• Trust in the company,
• Relations with personnel,
• Relations with clients,
• Relations with stakeholders,
• Relations with neighbourhood nature
• Relations with civil society

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MEASURING INTANGIBLE ASSETS I

• Two Schools of economists
• Majority trying to quantify the qualitative
• Minority accepting to cope with qualitative
  dimension in NEW economics

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MEASURING INTANGIBLES II

• 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

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Intangible indicators grow
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GROWING IMPORTANCE OF INTANGIBLE ASSETS (II)
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BUSINESS SOCIETYa new relation

• Industrial objects are tangibles ethically
  neutral.
• Knowledge is intangible always linked to a
  meaning and thus to ethics.
• Producing knowledge thus involves a meaning and a
  business reputation an intangible asset.

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SUSTAINABILITY INCLUSION AS KEY INTANGIBLES

• Because of the steady increase of importance of
  intangible assets
• Because of the link between sustainability
  inclusion and Humanity s future
• Companies that will be seen as caring for
  Humanitys future will have an increasing
  intangible value.
• Their stock value will skyrocket soon

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HR ANOTHER MAIN INTANGIBLE

• HR is important because it is another intangible
  asset.
• Not only it increases Human creativity and thus
  the value creation
• But it increases the positive energy inside and
  around the company Thus the intanbgible assets

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BUSINESS STRATEGIES IN KNOWLEDGE SOCIETY (I)

• 90 of the EU Business leaders choose the
  information society appraoch FREE TRADE
• More capital advanced technology
• 10 of the EU Business leaders choose the
  knowledge society approach
• human creativity gt gttechnol.
• Enterprise in Network win-win strat.
• Human capital not a cost but key asset

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Consequences for the Business (II)

• IN US, only the Knowledge society business
  (10) have survived the dot.com crash Example
  CISCO
• Because they have changed
• The tools (ICT)
• The structure of their enterprise
• The underlying vision of their scope and values
  (Verna ALLEE)

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CHAPTER 3 THE LISBON STRATEGIES AND THE
FUTURE OF EU
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LISBON STRATEGIES

• LISBON I 2000-05
• FREE SHARE
• Post industrial
• Post capitalist
• NOT EXPLAINED
• FAILURE

• LISBON II 2005-10
• FREE TRADE
• Old Industrial
• Capitalist
• Business as usual
• Easier

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LISBON STRATEGIES

• CONCLUSION
• Lisbon strategy I had thus done the right
  choices KS sustainability inclusion!
• BUT it failed to explain the new vision and the
  new economic frame FREE SHARE
• Lisbon II strategy weakens EUs competitive
  position in the long term.
• BUT it is easier to apply in short term.

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A WIN WIN STRATEGY FOR EUROPE?
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EU A WIN-WIN STRATEGY

• The obstacles to the free trade/industrial
  information society strategies
• become advantages in the knowledge society.
• BECAUSE The basic logic is different, almost
  opposite.

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WHEN OBSTACLES BECOME ADVANTAGES

• Free trade obstacles
• Social protection
• Environm.protect.
• Women family prog.
• Development prog
• Sharing technology

• Advantages Know. So
• Help natural networks
• Intangible asset
• Increase creativty
• Win-Win for EU
• Win-win strategy

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EU CONDITION of SUCCESS

• The only condition for success in this KNOWLEDGE
  society is to understand that we are entering in
  a new society new vision, new structure new
  economic logic.
• It is easier for the business to say this than
  for politics and administrations
• Hence the new mission of the world Business.

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BULGARIA WIN-WIN?

• When society changes, the new winners are rarely
  the same. Innovation comes from the periphery, or
  from new actors.
• Will Bulgaria become a leader in this Free Share,
  post-industrial approach?
• Will Bulgaria become a hub of societal innovation
  towards this new economy?
• This could be a win-win for the whole of the EU.

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Some good Books

• Peter DRUCKER Post capitalist society, Harper
  Business, New York, 1993.
• Verna ALLEE The future of knowledge Elsevier
  Science, 2003, USA.
• Rob CROSS Networks in the Knowledge economy
  2003.
• LEIBOLD and al. Strategic Management in the
  Knwoledge economy 2002.
• David ROONEY (Australia) Handbook on the
  Knowledge economy 2005.

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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