Simon Walker © Human Ecology Ltd 2011 based upon Human Ecology Theory

HELICAL CAPITALISMa new solution to an old

problem

Simon Walker

© Human Ecology Ltd 2011

based upon Human Ecology Theory

© Human Ecology Ltd 2010 2

Simon P Walker, Revd. MA Oxon, MTh, BTh◦ Works as a consultant, speaker and advisor to businesses

and charities in the UK and internationally and is the founder of Human Ecology Ltd and The Leadership Community.

◦ Author of Human Ecology Theory and its applications to organisations, behaviours and markets, The Undefended Leader Trilogy and The Undefended Life.

◦ Ordained Anglican minister who taught at Wycliffe Hall for seven years.

Author


Helps us understand the behaviour of social systems

Helps us understand how ideas are adopted and move through society

Helps us understand the psychology of buying and selling- e.g. the market

Human Ecology Theory: a theory of social space


1. Presentation and Reservation (P/R)◦ Presentation: newsletter, classrooms, happy kids, results◦ Reservation: planning, assessment, health and safety

2. Expanding & Consolidating (X/C)◦ Expansion: New curriculum, new markets (Far East)◦ Consolidation: Better teaching, fewer exam fails

3. Strong and Weak force (S/W)◦ Strong: Rules, discipline, standards, uniform◦ Weak: Respect, encouragement, friendships, pastoral care

How does Human Ecology do this?

Isolates 3 essential movementsfound all populations e.g. A school


Presentingnewsletter, classrooms,

happy kids, results

Movement 1:Presenting and Reserving

Reservingplanning, assessment,

health and safety


ExpandingNew curriculum, new

markets (Far East)

Movement 2: Expanding and Consolidating

ConsolidatingBetter teaching, fewer exam

failures


Strong forcesRules, discipline, standards,

uniform

Movement 3: Strong and Weak Forces

Weak forcesRespect, encouragement, friendships, pastoral care


A social ecologyof a school

PSC Head, exams, uniform

PSX Role models, icons, success stories, targets

PWX Opportunities, coaching, learning relationships

PWC Belonging, friendship groups, teams

RSC Rules, values, boundaries, expectations

RSX Vision, inspiration, knowledge gain

RWX Service, support, struggle

RWC Failure, absence, drop out, loss


Human Ecology Theory describes the ecology of any population

PSC Dominant norm

PSX Iconic celebrity

PWX Aspirational population

PWC Mass population

RSC Stabilising groundrules

RSX Radical innovators

RWX Frustrated and impotent

RWC Discarded


So What?

In order to understand why capitalism is broken we need to

understand how the market functions within a population


The monetising of the adoption of an idea

across a population

The Market: A Definition


PSC Dominant norm

PSX Iconic celebrity

PWX Aspirational population

PWC Mass population

RSC Stabilising groundrules

RSX Radical innovators

RWX Frustrated and impotent

RWC Discarded

The adoption pattern is a wave moving

through our social ecology

Essential Idea:


Enjoy a cuppa this morning?


The adoption of the Tea Bag

PSC Domination 96% in 2003

PSX Loose leaf tea Expansion 128 million/year!

PWX Demand 1960’s Life get’s faster!

PWC Adoption Tetley adverts: Cheap, quick

RSC Stabilisation Tetley Perforated tea bag 1964

RSX Origination Silk tea bag 1903, paper, perforated

RWX Frustration/desire Too slow, too much work in fast world!

RWC Discard/Depletion


The Rise of Windows

PSC Domination 2000Explorer

PSX Mainframes Expansion 1995Office

PWX Demand 1990 Windows

PWC Adoption 1981IBM partnership

RSC Stabilisation 1980MS DOS

RSX Origination: 1979 BASIC

RWX Frustration/desire: 1970’s Mainframes



Evolution by Natural Selection

PSC Domination Secularism 1980’s-

PSX Lamark, 7 day creation Expansion Public education 1960’s-

PWX Demand Politics of 1930’s

PWC Adoption Mendel rediscovered 1902

RSC Stabilisation Huxley inter al. 1860

RSX Origination Darwin 1859

RWX Frustration/desire: Geology/Paleontology 1820’s



Entrepreneurialism follows the same pattern

PSC Domination

PSX Expansion

PWX Demand

PWC Adoption

RSC Stabilisation

RSX Origination

RWX Frustration/desire



The Adoption

wave has two phases

Phase One Phase Two


Phase One happens beneath the surface (R=

Reserved)

•Hidden•Investment phase•Growth and development


Phase One has three distinct stages

Stage 2:Origination of the novel idea

Stage 1: Frustration with the current situation

Stage 3: Stabilisation of the technology


e.g.Tea Bags

PSC

PSX

PWX

PWC






Phase Two happens above the surface (P=

Presented)

•Visible•Return on Investment phase•Scale and Duration depends on base of Phase One


Phase Two also has four distinct stages

Stage 7: Saturation and domination

Stage 6: Expansion of delivery

Stage 5:Demand for the technology

Stage 4: Adoption of the technology


Phase Two for Tea Bags

PSC Domination 96% in 2003

PSX Expansion 128 million/year!

PWX Demand 1960’s Life get’s faster!

PWC Adoption Tetley adverts: Cheap, quick






What causes a wave’s decline?

BREAK: Weakness in the neck of the wave

DROP: Over-weighted head of wave

DRAG: Under-weighted base of wave


DRAG: Under-weighted base of wave

Structure begins to fall apart

Idea lacks originality Idea solves old problemIdea increasingly discredited


DRAG- can create collapse

Lack of Strong Regulatory Foundation (RSC)◦ Contributed to financial collapse

RSC phases (regulation) too thin to support wave above


BREAK : Weakness in the neck of the wave

Adoption not extensive

Technology not ready Idea is ahead of its time


BREAK: Overhyped market

Failure for market to be ready (PWC) e.g. Dot.com

PWC too narrow: market not ready for acceptance

RSX broad: online retail the future solution

RSC too narrow- broadband and online stores not robust enough


DROP :Over-weighted head of wave

Suppression of critique/supreme overconfidenceSaturation of technology


DROP: Collapse of investment banking

Over-extended PSC phase of wave through financial technology hubris

Expected wave profile if PSC not overextended


Are waves a good thing?


Waves are inevitable: It is how human creativity progresses

PSC Domination

PSX Expansion

PWX Demand

PWC Adoption

RSC Stabilisation

RSX Origination




Problem : Dominance often results in suppression rather than support

PSC DOMINATION- King!

PSX EXPANSION- Rich fool!

PWX Demand

PWC Adoption

RSC Stabilisation

RSX Origination




This is both unjust and unproductive

PSC

PSX

PWX

PWC

RSC

RSX

RWX

RWC

Lack of growth zone


It is driven by the twin emotions of fear and greed

PSC

PSX

PWX

PWC

RSC

RSX

RWX

RWC

FEARGREED


But this is the history of Western Capitalism

38© Human Ecology Ltd 2010

Structural engineering could change this outcome

PSC DOMINATING PHASE

PSX EXPANSIVE PHASE

PWX Demand

PWC Adoption

RSC Stabilisation

RSX Origination



Power of PSC and PSX used to pull up RWX and prevent RWC

39© Human Ecology Ltd 2010

From wave to helix

PSC INVESTING PHASE

PSX INSPIRING PHASE

PWX Demand

PWC Adoption

RSC Stabilisation

RSX Origination




The Jubilee follows this pattern

Jubilee = a system of interlocking waves or helices preventing social abuse

Jewish society

Period of service for slaves

Slave release

Slave ownership

Period of release for slaves

Blue waves and green waves tied to each other


Microfinance: strengthening the core

Microfinance get’s close placing social trust at heart of banking

High strength core of accountability and social cohesion and dignity

Pay back loans and can apply for more

Lenders invest

Entrepreneurs borrow

Loans recycled

Lenders reinvest


NFL: An example of for-profit market

The league

Superbowl

The draft

Profits from bowl back into league

Salary cap


Helical Capitalism Key Principles

•Trust + generosity not fear + greed•Long term lending – several cycles•Close proximity between investor and business•Investor takes stake in business


Fastest growing bank in UK

•No bonuses•Only local relationship between lender and business•Long term rewards for executives


When fear and greed drive adoption, the resulting wave pattern is inevitable

The Kingdom is a place in which fear and greed have no place

Kingdom people have the freedom to break the cycles of the market

The church must embody a different economic if it is to witness to the Kingdom

The Economics of the Kingdom


Further Reading

www.undefended.org


Disclaimer

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This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Human Ecology Ltd.

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Simon Walker © Human Ecology Ltd 2011 based upon Human Ecology Theory