From the Archives...
Review of January 1983 Economic Strategy for Management
"Selling the dog many times...
or the different forms of ownership, compensation, payment and control."
[Matt Taylor Journal page 632, June 24, 1984, 11:02AM]
Capitol Hill, Washington, D.C.
There are two "economics" of Management Centers:
One that deals with the cost and expected profit of building a Management
Center, or System, and second the wealth that can be created with a Management
Center, or System.
The first can be called Stage One economics and it has many aspects recognizable
in "old" and "new" economics terms; the second is
stage two economics, which is barely comprehensible by today's economic
theory and accounting practices.
Today's economics focus almost exclusively on monetary theory and short
term profit, very little--in practical terms--establishes a connection
between economics and ecology; and very little focus is brought to the
theory and practice of "wealth" development. Connection is not
made--again, in practical accounting terms--between organized capacity
and wealth development. We account many things as a liability, which in
fact are our basic wealth and account as profit many dollars which in
fact are dollars borrowed from the future. This accounting habit makes
us blind to--I claim--the majority of real economic opportunities that
are before us, both as a nation and as individuals and corporations.
The basic economic strategy that I have employed in developing Management
Centers is to "justify" them in traditional economic terms while
avoiding the traps of a slavish or narrow application of "old"
economics. This is the stage one economics referred to above. The stage
two economics pertains to the long term and "real" justification
of the Management Center concept. The financial model outlined on pages
613 and 614 are stage one economics; pages 503-506 start the bridge to
stage two. The essence of stage two--in practical terms--is embodied in
the 7th Domain: Venture Management, or in what Acacia is
calling Enterprise Management. This venture was conceived on a new theory
of organization and of the economic consequences of using such an organization.
copyright © 1984, MG Taylor Corporation.
All rights reserved
terms and conditions