Time for Change: Corporate and Economic Structure
Is it time to change the way we think about, measure and deliver our economic model? We have seen unprecedented growth under the Capitalist model.
It is a system that has pulled many people out of perceived poverty and has allowed for growth in technology and innovation.
It could be argued that we would not be as advanced as we are today if it were not for the benefits of Capitalism.
All Economic systems of the past have moved through stages of effectiveness and ineffectiveness and the question must be asked if Capitalism is approaching the end of its tether.
Whenever I mention this topic to fellow writers, friends and associates I am asked if I am advocating for something like Communism.
Despite the number of times I have been asked this I am surprised that few people consider the possibility of developing a new system that has no association to either past or present systems.
We can look at the overall Economic system by looking at corporate structure.
To explain this further we need to look at a typical corporate structure as applied in a modern business under a Capitalist system.
A typical modern Corporate structure is shaped like a pyramid.
We have a CEO at the top and underneath them a board of Directors.
This is followed by Managers, Area Managers, Sales reps, Retailers etc.
Incomes and equality are measured based on the level you are positioned in the Pyramid.
Additionally the further you move up the pyramid the higher your incomes and perceived social position as a result.
We have Poor, Working Class, Middle Class and Upper class positioned within the pyramid.
Picture if you will how and where these "classes" are positioned in the pyramid.
The unfortunate part about the structure of this pyramidal structure is it doesn't allow for those at the bottom of the pyramid to reach the same level of equality as the CEO at the top.
The Capitalist model gives us the idea that we all have the opportunity to reach this level but in reality it is impossible.
There will always need to be "Labourers" at the bottom of the pyramid to feed the classes above them.
The John Lewis Partnership in the United Kingdom is a good example of a business model based on equality.
There are 91,000 employees within the John Lewis group and 91,000 Business Partners.
It is not a coincidence that there are as man partners as there are employees because they are one and the same.
An alternative yet very similar model to the John Lewis Partnership is The Network Marketing System.
In Network Marketing each member, representative or distributor has equal chance of reaching the top level in the distribution model and not only is this achievable there are actually those above you willing and eager to help you achieve those levels.
By helping you reach the upper level in Network Marketing those above also take a step towards that level.
Additionally you also have the potential to reach that level before those above you reach it.
Both the John Lewis Partnership and Network Marketing Systems, although structured differently are business models with equality, morals, ethics and in many cases environmental responsibility at their core.
It is a system that has pulled many people out of perceived poverty and has allowed for growth in technology and innovation.
It could be argued that we would not be as advanced as we are today if it were not for the benefits of Capitalism.
All Economic systems of the past have moved through stages of effectiveness and ineffectiveness and the question must be asked if Capitalism is approaching the end of its tether.
Whenever I mention this topic to fellow writers, friends and associates I am asked if I am advocating for something like Communism.
Despite the number of times I have been asked this I am surprised that few people consider the possibility of developing a new system that has no association to either past or present systems.
We can look at the overall Economic system by looking at corporate structure.
To explain this further we need to look at a typical corporate structure as applied in a modern business under a Capitalist system.
A typical modern Corporate structure is shaped like a pyramid.
We have a CEO at the top and underneath them a board of Directors.
This is followed by Managers, Area Managers, Sales reps, Retailers etc.
Incomes and equality are measured based on the level you are positioned in the Pyramid.
Additionally the further you move up the pyramid the higher your incomes and perceived social position as a result.
We have Poor, Working Class, Middle Class and Upper class positioned within the pyramid.
Picture if you will how and where these "classes" are positioned in the pyramid.
The unfortunate part about the structure of this pyramidal structure is it doesn't allow for those at the bottom of the pyramid to reach the same level of equality as the CEO at the top.
The Capitalist model gives us the idea that we all have the opportunity to reach this level but in reality it is impossible.
There will always need to be "Labourers" at the bottom of the pyramid to feed the classes above them.
The John Lewis Partnership in the United Kingdom is a good example of a business model based on equality.
There are 91,000 employees within the John Lewis group and 91,000 Business Partners.
It is not a coincidence that there are as man partners as there are employees because they are one and the same.
An alternative yet very similar model to the John Lewis Partnership is The Network Marketing System.
In Network Marketing each member, representative or distributor has equal chance of reaching the top level in the distribution model and not only is this achievable there are actually those above you willing and eager to help you achieve those levels.
By helping you reach the upper level in Network Marketing those above also take a step towards that level.
Additionally you also have the potential to reach that level before those above you reach it.
Both the John Lewis Partnership and Network Marketing Systems, although structured differently are business models with equality, morals, ethics and in many cases environmental responsibility at their core.