1) Riches, abundant possessions, opulence; 2) The state of being rich; 3) An abundance or profusion of.
Adopt a new view of emerging future wealth. New wealth will not be created from industrial infrastructure, but from knowledge and creativity. Its potential is locked up in the hearts and minds – the very souls – of people. As a result, the focus of any successful business must shift from wealth accumulation (a physical assets model) to wealth creation (a knowledge management model).
Be prepared for a major revision to future economic thinking. Consider the underlying principles of how “dot.com” businesses have created, and will create, whatever wealth the markets ascribe to them. Most have virtually no physical assets. The phrase “our assets walk out the door every night to go home” takes on new meaning in most high-tech businesses today.
Study how wealth now gets created. There need be virtually no substantial investment in physical assets when we talk of Internet businesses. But they cannot get off the ground without considerable “sweat equity” from talented individuals working on a common goal. More and more, it is about “mind power” working anywhere (home) anytime (unusual hours through technology).
Create new business models. Enterprising minds of today are creating completely new business models and ways of interacting with clients never thought of before. Many more future services are yet to evolve that we can only dream about today. This creativity spurt will unleash new sources of wealth based on harnessing creativity and ideas.
Consider the timelines in which wealth is created. It is far easier to take advantage of the promise of an enterprising idea today than it has ever been in the past. This has allowed more and more people to access the means of wealth creation (their minds) and to rapidly create wealth for themselves rather than being dependent on others’ wealth in the form of wages. This trend will accelerate.
Account for the shareholder’s role in wealth creation. The appetite for capital has created a desire in management to please shareholders in the short term – often creating an unduly negative impact on long-term thinking in many publicly traded companies. Intellectual capital will drive the future economy, changing forever the notion of investing by attaching a premium to knowledge-based enterprises.
Accept that people now have more choice. They will decide where and when they work and with whom they partner to share their valuable store of knowledge and creativity. This is the essence of the talent war so often talked about, a true shift in the power balance of the labour market. They will choose to stay or go based on their degree of commitment to employers’ positive environments.
Accept that employees will expect to share the wealth. Workers in future will truly own their means of production and expect to share in wealth they create for others. Granting ownership to all employees, not just founding executives is an early sign of this. More and more, corporations will be forced through economic and competitive trends to become “benevolent” and share the spoils of wealth creation.
Questions For Reflection
How will the trend toward knowledge workers play out in your industry, and how does it impact you already?
How do you see management practices/thinking changing to acknowledge how important people are to the future creation of wealth?
How does your personal wealth impact your thinking about the ‘radical’ ideas this content is presenting?