Marc Luyckx Ghisi CBA Dean, expert European Commission Skopje, Macedonia, Sept 28, 2007 THE GROWING IMPORTANCE OF HR IN THE NEW KNOWLEDGE ECONOMY

Marc Luyckx Ghisi CBA Dean, experMarc Luyckx Ghisi CBA Dean, expert European Commissiont European Commission

Skopje, Macedonia, Sept 2Skopje, Macedonia, Sept 28, 2007 8, 2007

THE GROWING THE GROWING IMPORTANCE IMPORTANCE

OF HR IN THE NEW OF HR IN THE NEW KNOWLEDGE ECONOMYKNOWLEDGE ECONOMY



ABSTRACT: WHY GROWING ABSTRACT: WHY GROWING IMPORTANCE OF HR ?IMPORTANCE OF HR ?



WHY GROWING WHY GROWING IMPORTANCE ?IMPORTANCE ?• In the industrial economy, capital and In the industrial economy, capital and

technolgy are really crucial.technolgy are really crucial.• Human resources (HR) are important, Human resources (HR) are important,

but it works also and better with but it works also and better with robots.robots.

• HR is not really crucial.HR is not really crucial.• HR is squeezed between 2 logics :HR is squeezed between 2 logics :

– Caring for the humanCaring for the human– Cutting the costs = less employment !Cutting the costs = less employment !



WHY GROWING WHY GROWING IMPORTANCE ?IMPORTANCE ?• In the post industrial « knowledge In the post industrial « knowledge

economy » in which we are entering economy » in which we are entering full speed, HR becomes totally central.full speed, HR becomes totally central.

• Because, the NEW value creation Because, the NEW value creation process is process is appication of knowledge to appication of knowledge to knowledge in order to create new knowledge in order to create new knowledge.knowledge.

• But this can be done only But this can be done only by humansby humans..



WHY GROWING WHY GROWING IMPORTANCE ?IMPORTANCE ?• Hence in the «knowledge economy » Hence in the «knowledge economy »

humans become of crucial importance.humans become of crucial importance.• This is the reason why companies begin This is the reason why companies begin

to speak about « human capital ».to speak about « human capital ».• Indeed Human capital is the new « Tool Indeed Human capital is the new « Tool

of production».of production».• Hence the new importance of HR Hence the new importance of HR

becausebecause it cares for the new tool of it cares for the new tool of production !!production !!



HR IN INDUSTRIAL & HR IN INDUSTRIAL & KNOWLEDGE ECONOMIESKNOWLEDGE ECONOMIES

• INDUSTRIAL Econ.INDUSTRIAL Econ.• Tool of production = Tool of production =

capital + capital + technologytechnology

• Humans are Humans are second, AFTER second, AFTER machines & robotsmachines & robots

• HR is secondHR is second and and squeezedsqueezed

• KNOWLEDGE Econ.KNOWLEDGE Econ.• Tool of production Tool of production

is Human person= is Human person= able to create new able to create new Knowl.Knowl.

• Humans are before Humans are before machine & robotsmachine & robots

• HR is central.HR is central.



WHY GROWING WHY GROWING IMPORTANCE ?IMPORTANCE ?• This means that any HR manager has This means that any HR manager has

to have sense of humour…to have sense of humour…• Because on one side (S)he has to Because on one side (S)he has to

manage an industrial role. (Squeezed).manage an industrial role. (Squeezed).• And on the other side it has to become And on the other side it has to become

a leader in the new « knowledge a leader in the new « knowledge economy »economy »

• And (S)he has to explain this to the And (S)he has to explain this to the General Manager!!General Manager!!



CHAPTER 1CHAPTER 1::

BUSINESS IN A TIME BUSINESS IN A TIME OF DEEP TRANSFORMATIONOF DEEP TRANSFORMATION



P. Drucker: P. Drucker: TransformationTransformation

Every few hundred years in Western History there Every few hundred years in Western History there occurs a sharp transformation. occurs a sharp transformation.

Within a few short decades, society rearranges itself Within a few short decades, society rearranges itself : its worldview (paradigm), its basic values, its : its worldview (paradigm), its basic values, its social and political structures, its arts, its key social and political structures, its arts, its key institutions. institutions.

Fifty years later there is a new world.”Fifty years later there is a new world.”

Peter DRUCKER: Peter DRUCKER: “Post Capitalist Society”.“Post Capitalist Society”. Butterworth Heinemann, 1993, 2001, Butterworth Heinemann, 1993, 2001, p.1.p.1.



One of the most One of the most fundamental shiftsfundamental shifts

• ““We are living through one of the most We are living through one of the most fundamental shifts in History: a change in the fundamental shifts in History: a change in the actual belief structure of Western Society. No actual belief structure of Western Society. No economics, political or military power can compare economics, political or military power can compare with the power of a change of mind. By with the power of a change of mind. By deliberately changing their images of reality, deliberately changing their images of reality, people are changing the world.” people are changing the world.”

Willis HARMAN Stanford Research Institute (+1997)Willis HARMAN Stanford Research Institute (+1997), , Founder of the Founder of the “World Business Academy”“World Business Academy”



Transmodern Business

Knowledge SocietyTRANSMODERN

Danger

Industrial leftovers who have not grasped the changeAgrarian

premodern

Agrarianleftovers

Culturalcreatives

IndustrialMODERN

Sept. 11, 2001?

New Women-Men Partnership Society

End ofPatriarchal Society

Transmodern Business

Knowledge SocietyTRANSMODERN

Danger

Industrial leftovers who have not grasped the changeAgrarian

premodern

Agrarianleftovers

Culturalcreatives

IndustrialMODERN

Sept. 11, 2001?

New Women-Men Partnership Society

End ofPatriarchal Society

Transition to Transmodern

Death ?



KNOWLEDGE SOCIETY:KNOWLEDGE SOCIETY:FIVE LEVELS OF CHANGEFIVE LEVELS OF CHANGE



Transformation’s five Transformation’s five levelslevels1.1. Humanity is in danger of collective Humanity is in danger of collective death death

2.2. Knowledge society is the End of the Patriarchal Knowledge society is the End of the Patriarchal values (CCC)values (CCC)

3.3. Knowledge Society is the end of modernity. It is Knowledge Society is the end of modernity. It is tansmodern. (post secular, flat, tolerant, new tansmodern. (post secular, flat, tolerant, new level of responsibility and consciousness).level of responsibility and consciousness).

4.4. Knowledge society is also a new economic logic.Knowledge society is also a new economic logic.

5.5. Knowledge society is potentially a new political Knowledge society is potentially a new political concept of non violence between States. (like concept of non violence between States. (like EU)EU)



The Iceberg of The Iceberg of TRANSMODERNITYTRANSMODERNITY

Level 2 : End of Patriarchal myths, sacred and Level 2 : End of Patriarchal myths, sacred and valuesvalues

Level 3: End of Modernity: REASON Only Truth, Science, Violence, Level 3: End of Modernity: REASON Only Truth, Science, Violence, Pyramids, ControlPyramids, Control

Level 4 : The knowledge society : post-capitalist society Level 4 : The knowledge society : post-capitalist society ((DruckerDrucker))

Level 5 : Credibility gap of all Institutions is increasing Level 5 : Credibility gap of all Institutions is increasing

Level 1 : Danger of Collective Level 1 : Danger of Collective DeathDeath

dramaticallydramatically……



LEVEL 1: LEVEL 1: HUMANITY IS IN DANGER OF HUMANITY IS IN DANGER OF

COLLAPSECOLLAPSE



WorldWatch Institute WorldWatch Institute Washington Washington

• ““Our global economy is outgrowing the Our global economy is outgrowing the capacity of the earth to support it, moving us capacity of the earth to support it, moving us ever closer to decline and possible ever closer to decline and possible collapse….collapse….

• ““We have the technologies needed to build We have the technologies needed to build the new economy…”the new economy…”

• Lester BROWN: “Lester BROWN: “Plan B 2.0” Norton NY, Plan B 2.0” Norton NY, LondonLondon

• 2006. Presentation text on the cover.2006. Presentation text on the cover.



UNESCO : War against UNESCO : War against naturenature• Koichiro MATSUURAKoichiro MATSUURA, Director of , Director of

UNESCO in Paris has declared that UNESCO in Paris has declared that “we “we must end this war against nature, must end this war against nature, which is in fact a war against ourselves, which is in fact a war against ourselves, and against the future generations.”and against the future generations.”

• ““We must conclude an armistice, a new We must conclude an armistice, a new “natural pact” of co-development with “natural pact” of co-development with nature.”nature.” (“Le Figaro” Jan 11, 2007.) (“Le Figaro” Jan 11, 2007.)



WHY?WHY?

• It is a question of It is a question of SurvivalSurvival for for HUMANIY.HUMANIY.



Level 2: Level 2:

KNOWLEDGE SOCIETY =KNOWLEDGE SOCIETY =END OF PATRIARCHAL END OF PATRIARCHAL

VALUESVALUES



From Matrilinear to From Matrilinear to PatriarchalPatriarchal

• MATRILINEAR(-3500)MATRILINEAR(-3500)

• Woman= Goddess, Woman= Goddess,

• snake = her powersnake = her power

• SACRED = LIFE tree, SACRED = LIFE tree, blood, birth…blood, birth…

• Sexuality + PleasureSexuality + Pleasure

• Power = life givingPower = life giving

• Beauty + art Beauty + art CreativityCreativity

• PATRIARCHAL PATRIARCHAL

• God the Father God the Father

• women infer + sin.women infer + sin.

• SACRED= Violent SACRED= Violent DEATH, blood, cross…DEATH, blood, cross…

• Sex pleasure impureSex pleasure impure

• Power = to killPower = to kill

• Ascetism is better Ascetism is better



KNOWLEDGE SOCIETY = KNOWLEDGE SOCIETY = END OF COMMAND AND END OF COMMAND AND CONTROLCONTROL• Every LEADER will have to shift his Every LEADER will have to shift his

approach, and the political structures approach, and the political structures towards post patriarchal values: towards post patriarchal values: – respect for the environment, respect for the environment, – Importance of human relationsImportance of human relations– Fostering the joy of creation,Fostering the joy of creation,– contact with nature, link with the cosmos,contact with nature, link with the cosmos,– Interiority, spiritual dimensionInteriority, spiritual dimension



A NEW WOMAN-MAN A NEW WOMAN-MAN RELATIONRELATION

• In every couple around the world, we see a In every couple around the world, we see a hidden transformation of the relation. hidden transformation of the relation. Hence... some new conflicts! Hence... some new conflicts!

• This means that women This means that women and and men are men are obliged to redefine their roles and obliged to redefine their roles and behaviours.behaviours.

• Few structures are able to help couples in Few structures are able to help couples in this unexplained transition. SILENCE.this unexplained transition. SILENCE.



LEVEL 3: LEVEL 3:

KNWOLEDGE SOCIETY = KNWOLEDGE SOCIETY = END OF MODERNITYEND OF MODERNITY



Multi level changes...Multi level changes...

1.1. Structures: From pyramids to void circleStructures: From pyramids to void circle

2.2. Status of rational thinkingStatus of rational thinking

3.3. Status of Spiritual aspiration (religion) in public.Status of Spiritual aspiration (religion) in public.

4.4. Status of truth: real tolerance.Status of truth: real tolerance.

5.5. Status of Science and tech.Status of Science and tech.

6.6. Status of political violence: beyond warStatus of political violence: beyond war

7.7. Status of body, intuition, ethics, esthetics...Status of body, intuition, ethics, esthetics...



0. Pre-Modern to Modern : 0. Pre-Modern to Modern : Pyramid to PyramidPyramid to Pyramid

PRE-MODERNPRE-MODERN MODERNMODERN

COSMOS = objectCOSMOS = object

GODGOD

ClergyClergy

GovernmentGovernment

MenMen

WomenWomen

REASONREASON

EconomistEconomist


MenMen

WomenWomen

COSMOS = sacredCOSMOS = sacred



1. From Modern to 1. From Modern to Transmodern: Transmodern:

From Pyramid to void cercle From Pyramid to void cercle MODERNMODERN TRANSMODERNTRANSMODERN

CulturesCultures

Centre is Centre is emptyempty

Men part of Men part of COSMOSCOSMOS

Men ‘above’ the Men ‘above’ the COSMOSCOSMOS

REASONREASON

EconomistEconomist


MenMen

WomenWomen



2. STATUS OF RATIONAL 2. STATUS OF RATIONAL THINKINGTHINKING

• ““Modern” rational thinking has been a liberation Modern” rational thinking has been a liberation struggle against medieval obscurantism.struggle against medieval obscurantism.

• It has become now, like a mental prison.It has become now, like a mental prison.

• Rationality is loosing its Rationality is loosing its divine status divine status given by given by “modernity”. And it is only “modernity”. And it is only one wayone way to think. to think.

• Other ways of thinking like intuition, connection Other ways of thinking like intuition, connection to the cosmos, gain credibility, because we need to the cosmos, gain credibility, because we need them, to create knowledge !!them, to create knowledge !!



3. STATUS OF SPIRITUAL 3. STATUS OF SPIRITUAL ASPIRATION IN PUBLICASPIRATION IN PUBLIC

• For evident reasons modernity has taken For evident reasons modernity has taken distance from religions.distance from religions.

• But in doing this, it has progressively But in doing this, it has progressively marginalized religions and spiritual aspiration marginalized religions and spiritual aspiration as outdated.as outdated.

• This negation of such an important human This negation of such an important human dimension is in crisis.dimension is in crisis.

• We go probably towards : We go probably towards : distinctiondistinction but not but not anymore separation.anymore separation.



4. STATUS OF TRUTH4. STATUS OF TRUTH

MODERNMODERN

• PyramidalPyramidal

• IntolerantIntolerant

• Rational = truthRational = truth

• Secular (France)Secular (France)

• DisenchantedDisenchanted

• NOT ResponsibleNOT Responsible

• No conscious of No conscious of wholewhole

TRANSMODERNTRANSMODERN

• Round table + HoleRound table + Hole

• Radical toleranceRadical tolerance

• Truth exist=“void”Truth exist=“void”

• Post secularPost secular

• Re-enchantedRe-enchanted

• Collective Collective responsibilityresponsibility

• New level of New level of consciousnessconsciousness



5. NEW ROLE OF SCIENCE & 5. NEW ROLE OF SCIENCE & TEC.TEC.

• Science & Technology had received in “modern” Science & Technology had received in “modern” times a “times a “divine” divine” status, because they were rational status, because they were rational thus truethus true. Now they have to be at the service of our . Now they have to be at the service of our survival in a sustainable future.survival in a sustainable future.

• Science was above ethics, Science was above ethics, value free ! value free ! Now ethics is Now ethics is back and citizens ask questions to science.back and citizens ask questions to science.

• Science was functioning in a Science was functioning in a offer economyoffer economy (please (please consume what we invent !). consume what we invent !).

• Now science HAS to function in a Now science HAS to function in a demand demand economyeconomy (please be part of the solution !). (please be part of the solution !).



5. SCIENCE5. SCIENCE

• And science is reinventing itself at full And science is reinventing itself at full speed.speed.

• And this happens through hard paradigm And this happens through hard paradigm conflicts (Thomas Kuhn, Harvard)conflicts (Thomas Kuhn, Harvard)

• Back to a “poetic” approach to nature... Back to a “poetic” approach to nature... (Ilya Prigogine, Nobel prize 1977).(Ilya Prigogine, Nobel prize 1977).



6. STATUS OF POLITICAL 6. STATUS OF POLITICAL VIOLENCEVIOLENCE

• Modernity has created the State as Modernity has created the State as zone of zone of internal NON-violence inside.internal NON-violence inside. But outside the But outside the borders, citizens are obliged to kill. borders, citizens are obliged to kill.

• Transmodernity has invented structures of Transmodernity has invented structures of non-violence between States: non-violence between States: The EU is the The EU is the first success.first success.

• But European Governments “sell” the EU as But European Governments “sell” the EU as a market... They should sell EU as the a market... They should sell EU as the first first political avantgarde of the Knowledge political avantgarde of the Knowledge societysociety ! !



7. STATUS OF INTUITION, 7. STATUS OF INTUITION, ETHICS, BODY, SACRED, ETHICS, BODY, SACRED,

DEATH... DEATH...

• Many things are changingMany things are changing• We see that intuition, ethics, esthetics, are really We see that intuition, ethics, esthetics, are really

becoming important again in the knowledge becoming important again in the knowledge society.society.

• The very concept of sacred has transformed more The very concept of sacred has transformed more in 40 years than in 2000 years!in 40 years than in 2000 years!

• The way we see death and life after death is also The way we see death and life after death is also changing completely...changing completely...

• We see a reconnexion of body, mind, soul, We see a reconnexion of body, mind, soul, intelligence...Towards Reenchantment ?intelligence...Towards Reenchantment ?



CONSEQUENCE: CONSEQUENCE: POLITICAL CHOICES (I)POLITICAL CHOICES (I)

• EU should be presented as the EU should be presented as the First First political structure of the Knowledge political structure of the Knowledge SocietySociety in the XXI° century. in the XXI° century.

• Politicians should dear to say that we are Politicians should dear to say that we are like at the beginning of a new Renaissance...like at the beginning of a new Renaissance...

• They should call people to reflect worldwide They should call people to reflect worldwide on the new sustainable structures of the on the new sustainable structures of the future Knowledge Society.future Knowledge Society.



CONSEQUENCE: CONSEQUENCE: ECONOMIC CHOICES (I)ECONOMIC CHOICES (I)

• Politicians and economist should have the Politicians and economist should have the courage to say that we are not anymore in courage to say that we are not anymore in the industrial capitalist period.the industrial capitalist period.

• We are already in the knowledge We are already in the knowledge economy/society which is post capitalist economy/society which is post capitalist (Drucker).(Drucker).

• But nobody dears to say the truth to the But nobody dears to say the truth to the citizens. And they know it .... citizens. And they know it .... subconsciously.subconsciously.



WHAT IS LISBON WHAT IS LISBON STRATEGY ?STRATEGY ?• In March 2000, the Head of the 15 States, In March 2000, the Head of the 15 States,

which are Members of the European Union, which are Members of the European Union, met in Lisbon for one of their official met in Lisbon for one of their official meetings called « European Council ».meetings called « European Council ».

• They decided that « They decided that « the EU should become the EU should become the most competitive world actor in the the most competitive world actor in the Knowledge society before 2010, and this in Knowledge society before 2010, and this in full respect of sustainability and social full respect of sustainability and social inclusion. »inclusion. »



CONSEQUENCE: CONSEQUENCE: ECONOMIC CHOICES (II)ECONOMIC CHOICES (II)

• And this “knowledege Society” (Lisbon Strategy of And this “knowledege Society” (Lisbon Strategy of the EU 2000-2010), has to be oriented towards full the EU 2000-2010), has to be oriented towards full sustainability and social inclusion. sustainability and social inclusion.

• It IS Possible. A debate is urgent and needed. It IS Possible. A debate is urgent and needed.

• But this presupposes that the economists and But this presupposes that the economists and politicians admit that we are - for 60%- not anymore politicians admit that we are - for 60%- not anymore in the industrial “free trade” economy, which is in the industrial “free trade” economy, which is unable to lead to a sustainable world.unable to lead to a sustainable world.



THE DINOSAUR THE DINOSAUR SYNDROM !SYNDROM !

• We are in a time of rapid change. We are in a time of rapid change.

• Many structures will become dinosaurs, if Many structures will become dinosaurs, if they are unable to transform...they are unable to transform...

• Better create new structures without fighting Better create new structures without fighting the old ones. the old ones.



Conclusion Conclusion

• Where are you personally? Are you feeling Where are you personally? Are you feeling this transition?this transition?

• Where are Macedonian young business Where are Macedonian young business leaders? In which paradigm are they ?leaders? In which paradigm are they ?

• What is the future of Macedonia? Knowledge What is the future of Macedonia? Knowledge economy?economy?

• Macedonia could perhaps leapfrog the Macedonia could perhaps leapfrog the industrial phase and perform in the new industrial phase and perform in the new economy? economy?



CHAPTER 2:CHAPTER 2:

WHAT IS KNOWLEDGE WHAT IS KNOWLEDGE ECONOMICS?ECONOMICS?

((Level 4! )Level 4! )



DEFINITIONSDEFINITIONS

• Data:Data: what is on the web, unorganised what is on the web, unorganised

• Information:Information: is already sorted by « Google ». is already sorted by « Google ». Overabundance.Overabundance.

• Knowledge:Knowledge: is digested by is digested by human brain.human brain. LessLess

• Human brain and networks are the Human brain and networks are the NEW TOOLS of PRODUCTIONNEW TOOLS of PRODUCTION

• WisdomWisdom, Knowledge are , Knowledge are rare. Not enough. rare. Not enough.



A new world...A new world...

1.1. New tool of productionNew tool of production : : human brainhuman brain2.2. New CEONew CEO: Enabling creativity and sharing, Caring for : Enabling creativity and sharing, Caring for

humans = new humans = new human-centeredhuman-centered management management3.3. New value creation process : New value creation process : adding K to K.adding K to K.4.4. New TradeNew Trade: from : from Free TradeFree Trade to to Free SharingFree Sharing5.5. New measurementsNew measurements = = qualitative “qualitative “intangibles”intangibles” 6.6. New strategyNew strategy: beyond war: : beyond war: win-win win-win not win-loosenot win-loose7.7. New definition of ProgressNew definition of Progress = qualitative = qualitative8.8. Beyond patentingBeyond patenting towards towards “Open Source”“Open Source”9.9. Beyond pyramidsBeyond pyramids towards towards networksnetworks10.10. Capitalizing on Capitalizing on cultural cultural capital + capital + gendergender capital capital



1. NEW TOOL OF 1. NEW TOOL OF PRODUCTION PRODUCTION

The tool of production is not anymore The tool of production is not anymore machine + technol.+ capital (€).machine + technol.+ capital (€).

New tool of production is human brain + New tool of production is human brain + sharing knowledge in Networks in order to sharing knowledge in Networks in order to create new K. create new K.

This This new tool of productionnew tool of production is more is more important than important than capitalcapital and and technoltechnol. . Humans are ABOVE machines and Capital. Humans are ABOVE machines and Capital.

Hence Post capitalist society!Hence Post capitalist society!



22.. NEW CEO FUNCTION NEW CEO FUNCTION

• Old CEO: command, control, conquerOld CEO: command, control, conquer

• New CEO: New CEO: – Enables the creativity of his “human capital”= Enables the creativity of his “human capital”=

tool of Productiontool of Production– Enables and creates networks around his team. Enables and creates networks around his team.

Because (S)He cannot control networks!Because (S)He cannot control networks!– Cares for the intangible assets = brandCares for the intangible assets = brand



2. HR AND NEW 2. HR AND NEW MANAGEMENTMANAGEMENT

• Human capital Human capital and HR become and HR become central central because because they arethey are caring for the tool of caring for the tool of production: Please come backproduction: Please come back tomorrow tomorrow! !

• Thus Thus Management : shifts 180° towards Management : shifts 180° towards human centeredness = more creativity-human centeredness = more creativity-centred, gender & culture – centred.centred, gender & culture – centred.

• HR Becomes absolutely central.HR Becomes absolutely central.



HR AND NEW HR AND NEW MANAGEMENTMANAGEMENT

• The EU economy is at least 50% in this new The EU economy is at least 50% in this new knowledge economy. Thus HR is really knowledge economy. Thus HR is really becoming more important everyday.becoming more important everyday.

• But many enterprises are not understanding But many enterprises are not understanding the change. And keep HR devalued !the change. And keep HR devalued !

• Most CEO’s do not understand... It is too Most CEO’s do not understand... It is too quick!quick!



HR AND NEW HR AND NEW MANAGEMENTMANAGEMENT• And so the HR managers have a difficult And so the HR managers have a difficult

task to convince their top managers. task to convince their top managers.

• Meanwhile people under them push for Meanwhile people under them push for change, because they feel the need.change, because they feel the need.

• It is important for HR managers to It is important for HR managers to understand that their problems are understand that their problems are worldwide the same. The transformation is worldwide the same. The transformation is too quick!too quick!



3. 3. NEW VALUE CREATION NEW VALUE CREATION PROCESPROCES

• INDUSTRIAL SOC.INDUSTRIAL SOC.

• Add value to objectAdd value to object

• From steel to car !From steel to car !

• Tool is MachineTool is Machine

• Humans are costHumans are cost

• Management is Management is machine-centeredmachine-centered

• Machine is centralMachine is central

• KNOWLEDGE SOC.KNOWLEDGE SOC.• Create new K Create new K • From data, info to KFrom data, info to K• Tool is Human brain Tool is Human brain

in Networksin Networks• Humans are capitalHumans are capital• Management is Management is

Human-centeredHuman-centered• Machine is at Machine is at

serviceservice



4. 4. BEYOND TRADE BEYOND TRADE : win-: win-winwin(I)(I)

• If I exchange an object against money, I If I exchange an object against money, I loose the object. This is “trade”: I win and I loose the object. This is “trade”: I win and I loose. “Win-Loose” logicloose. “Win-Loose” logic

• If I exchange knowledge, If I exchange knowledge, I do not loose my I do not loose my knowledge. knowledge. I win and you win. I am not I win and you win. I am not trading anymore. I share. This is a “trading anymore. I share. This is a “win-win win-win logic” of sharing.logic” of sharing.



4. 4. BEYOND TRADE (II)BEYOND TRADE (II)

• ININDUSTRIALDUSTRIAL SOC. SOC.

• Free trade Free trade of objectsof objects

• Industrial structureIndustrial structure

• PyramidsPyramids

• UnemploymentUnemployment

• PollutionPollution

• Quantitative growthQuantitative growth

• KNOWLEDGE SOC.KNOWLEDGE SOC.

• Free sharing of knowl.Free sharing of knowl.

• PoPost-industrialst-industrial--capitalistcapitalist. .

• Network =value Network =value creationcreation

• SSelf-creation of elf-creation of my my jobjob

• Immaterialization of Immaterialization of prod.prod.

• Qualitative growthQualitative growth



5.5. AA NEW NEW SYSTEM SYSTEM OF MEASUREMENTSOF MEASUREMENTS

• « Intangible assets » is a new concept « Intangible assets » is a new concept invented by Karl Erik SVEIBY (Sweden)invented by Karl Erik SVEIBY (Sweden)

• They are becoming more and more They are becoming more and more important in the knowledge societyimportant in the knowledge society

• BecauseBecause the knowledge society is about the knowledge society is about knowledge which is knowledge which is immaterial, immaterial, intangible intangible and qualitative.and qualitative.



5. 5. AA NEW NEW SYSTEM OF SYSTEM OF MEASUREMEASUREMENT:MENT:

INTANGIINTANGIBLE ASSETS (I)BLE ASSETS (I)

• Intangibles assets = Intangibles assets = – Know how, Know how, – Reputation, Trust in the company, Reputation, Trust in the company, – Structure of the company, Structure of the company, and and Strategy Strategy

(balanced scorecards)(balanced scorecards)– Relations with personnel, Relations with personnel, – Relations with clients,Relations with clients,



5. 5. AA NEW NEW SYSTEM OF SYSTEM OF MEASUREMEASURE.. INTANGIINTANGIBLE BLE

ASSETS (II)ASSETS (II)• Relation with civil societyRelation with civil society

• Relation to environment Relation to environment

• Relation to our collective Future and Relation to our collective Future and sustainabilitysustainability

• But also But also quality of the Networksquality of the Networks



5. 5. INTANGIBLE ASSETS INTANGIBLE ASSETS IN IN STOCK MARKETSSTOCK MARKETS

• Stock exchange measurements are still looking at Stock exchange measurements are still looking at financial “tangible” assets (quantitative) but they financial “tangible” assets (quantitative) but they increasingly look at “intangible” assets (qualitative). increasingly look at “intangible” assets (qualitative).

• Today a company is measured more and more by Today a company is measured more and more by its intangible assets : Minimum 50% . its intangible assets : Minimum 50% .

• Example: “Example: “Men’s WearMen’s Wear” USA. & “” USA. & “World Business World Business Academy”, “Spirit in Business”.Academy”, “Spirit in Business”.

• See also Neskey: See also Neskey: www.neskey.comwww.neskey.com



5. Intangible indicators 5. Intangible indicators growgrow

Tra

nsp

are

ncy

ICT Proliferation

Financial indicators remain important

Non-financia

l indica

tors

grow in im

portance

Potential for greaterparticipation and

wider accountability

1990 2006 2015



5. 5. GROWING IMPORTANCE OF GROWING IMPORTANCE OF INTANGIBLE ASSETS (II)INTANGIBLE ASSETS (II)

0%

10%

20%

30%

40%

50%

60%

70%

80%

1980 2006 2010 2020

Tangible

Intangible



6. NEW BUSINESS 6. NEW BUSINESS STRATEGY WIN-WINSTRATEGY WIN-WIN

• Old business strategy is warlike. Battlefield Old business strategy is warlike. Battlefield images are frequent. Patriarchal values images are frequent. Patriarchal values dominate: “win-loose” strategies.dominate: “win-loose” strategies.

• New business strategy: much less violent, New business strategy: much less violent, “competition through collaboration” is the “competition through collaboration” is the new motto (post patriarchal).new motto (post patriarchal).

• Knowledge behaves like love! Knowledge behaves like love! Chocking Chocking ideaidea for the industrial capitalist economy. for the industrial capitalist economy.



7. NEW DEFINTION OF 7. NEW DEFINTION OF PROGRESSPROGRESS

• The industrial & modern definition of The industrial & modern definition of progress is quantitative. More is better.progress is quantitative. More is better.

• This definition is UNSUSTAINABLEThis definition is UNSUSTAINABLE

• The knowledge society implies a The knowledge society implies a qualitative qualitative definition of progress.definition of progress.

• Good news: this allows a reorientation of our Good news: this allows a reorientation of our societies towards sustainability!!societies towards sustainability!!



8. BEYOND PATENTING8. BEYOND PATENTING

• The whole of the industrial production The whole of the industrial production system is based on secrecy and patenting. system is based on secrecy and patenting. I have this technology and you have not. I have this technology and you have not. So I win!So I win!

• ““Information and knowledge always leak”Information and knowledge always leak”

• In the knowledge economy we will NOT be In the knowledge economy we will NOT be able to maintain secrecy, neither able to maintain secrecy, neither patenting. patenting.

• See generic medecines, I-Pod music etc,.See generic medecines, I-Pod music etc,.



9. BEYOND PYRAMIDS 9. BEYOND PYRAMIDS TOWARDS TOWARDS NETWORKS NETWORKS

Pyramids are the « normal » structure of Pyramids are the « normal » structure of all industrial organizations.all industrial organizations.

But knowledge is created only in networks. But knowledge is created only in networks. This is the form that will prevail in the This is the form that will prevail in the XXIst century.XXIst century.

Thus Pyramids are in crisis everywhere. In Thus Pyramids are in crisis everywhere. In Governments, Military, Churches, NGO etc.Governments, Military, Churches, NGO etc.



10. CAPITALIZING ON 10. CAPITALIZING ON CULTURAL AND GENDER CULTURAL AND GENDER

CAPITALCAPITAL

• Paradoxically culture and gender diversity Paradoxically culture and gender diversity becomes important as they feed creativitybecomes important as they feed creativity

• The knowledge management is thus The knowledge management is thus potentially socially / gender inclusive potentially socially / gender inclusive and sustainableand sustainable

• The Lisbon strategy was thus an excellent The Lisbon strategy was thus an excellent choice and much forward looking.choice and much forward looking.



CONCLUSION CONCLUSION : : NEW NEW VALUES…VALUES…

• Underlying values needed in the industrial Underlying values needed in the industrial capitalist society are freedom, initiative, capitalist society are freedom, initiative, ceativity…ceativity…

• NEW Values are needed: NEW Values are needed: – Freedom (of sharing)Freedom (of sharing)– Solidarity, Caring, RespectSolidarity, Caring, Respect– TransparencyTransparency– Concern for the Common GoodConcern for the Common Good



BUSINESS AND VIOLENCEBUSINESS AND VIOLENCE

• Because of Because of – the danger of collective death, the danger of collective death, – because of the end of patriarchy, because of the end of patriarchy, – because of the end of modernity, because of the end of modernity, – because of the knowledge economy,...because of the knowledge economy,...

• The relation of Business to violence is The relation of Business to violence is shifting 180°. shifting 180°.



MOREMORE FEMININE FEMININE VALUES…VALUES…

• VValues needed in the industrial alues needed in the industrial capitalist society are freedom, capitalist society are freedom, initiative, ceativity…initiative, ceativity…

• More feminine vMore feminine values are needed: alues are needed: – Freedom of sharingFreedom of sharing– Solidarity, Caring, RespectSolidarity, Caring, Respect– TransparencyTransparency– Concern for the Common GoodConcern for the Common Good and and

future generationsfuture generations



WOMEN ARE DOING VERY WOMEN ARE DOING VERY WELLWELL

• Women are doing very well in Women are doing very well in leadership leadership positions in this knowledge positions in this knowledge economy.economy.

• Because they have no problems to Because they have no problems to push for new feminine values.push for new feminine values.

• They have – usually- no problems to They have – usually- no problems to work in networks...work in networks...

• Men have usually to ulearn first...Men have usually to ulearn first...



HR WOMEN HAVE A HR WOMEN HAVE A MISSIONMISSION

• HR Women have a mission: Help this HR Women have a mission: Help this new society and this new non-violent new society and this new non-violent logic to come to life !logic to come to life !

• Are they sufficiently conscious of Are they sufficiently conscious of their important mission?their important mission?



HR MANAGERS ARE HR MANAGERS ARE CRUCIALCRUCIAL• HR managers have a crucial role in HR managers have a crucial role in

helping the trasition towards the helping the trasition towards the Knowledge society.Knowledge society.

• They have to help the birth of this They have to help the birth of this new society…, and the very survival new society…, and the very survival of the company !of the company !

• It is a fascinating job. But they are It is a fascinating job. But they are squeezed between the two logics.squeezed between the two logics.



Some good Books…Some good Books…

• Peter DRUCKER: “Peter DRUCKER: “Post capitalist societyPost capitalist society”, Harper ”, Harper Business, New York, 1993.Business, New York, 1993.

• Verna ALLEE: “Verna ALLEE: “The future of knowledge” The future of knowledge” Elsevier Elsevier Science, 2003, USA.Science, 2003, USA.

• Marc LUYCKX GHISI:Marc LUYCKX GHISI: "A win–win strategy for the "A win–win strategy for the European Union in the knowledge society"European Union in the knowledge society" published in the "European Visions for the published in the "European Visions for the knowledge age: a quest for a New Horizon in the knowledge age: a quest for a New Horizon in the information society". Paul KIDD(Ed.) Cheshire information society". Paul KIDD(Ed.) Cheshire Henbury, 2007.Henbury, 2007.

• Harvard Business Review on Knowledge Harvard Business Review on Knowledge management. 2006. Book with 8 articles.management. 2006. Book with 8 articles.



Good Books (II)Good Books (II)

• Jeremy RIFKIN: “Jeremy RIFKIN: “The European Dream: The European Dream: when Europe’s vision of the future is when Europe’s vision of the future is silently eclipsing the American dream” silently eclipsing the American dream” Penguin 2004.Penguin 2004.

• Ray ANDERSON: “Ray ANDERSON: “Mid Course correctionMid Course correction” ” 1998. 1998. www.chelseagreen.comwww.chelseagreen.com (Interface) (Interface)

• World Business Academy: World Business Academy: www.worldbusiness.orgwww.worldbusiness.org

• ““Neskey” on intangible measurements : Neskey” on intangible measurements : www.neskey.comwww.neskey.com

Documents

Marc Luyckx Ghisi CBA Dean, expert European Commission Skopje, Macedonia, Sept 28, 2007 THE GROWING IMPORTANCE OF HR IN THE NEW KNOWLEDGE ECONOMY