It has never been more timely to find new solutions to the challenges we are facing.
As we write this, the world is only just beginning to emerge from a global pandemic, the impact of which has had devastating effects for individuals, countries, governments and society as a whole. Revenue losses in companies large and small are unprecedented, leaving many corporate directors asking the question of whether their organizations remain a going concern. Along with the continuing threat of climate change and the eruption of social tensions driven by long-felt inequities, we are facing crises in all parts of the sub-systems of our global system – the natural environment, the social and political and the global economy.
Our work is informed by the following three assumptions:
- Capitalism’s Third Wave – the narrative: The industrial era with its factory-based system of production has been supplanted by a new intangible economy. The new intangible -based engines-of-growth is global, instantaneous and vastly different from the mechanical industrial-type production of the 20th century. This is the third time in capitalism’s history that a similar shift has occurred.
- Tackling the Root Cause - upside down incentives: Accounting practice defies accounting standards and has created upside down incentives throughout the system. Normative accounting flips the incentives. It also creates a consistent methodology with which to dismantle and re-assemble all of the incentives over time.
- Fatal Flaws in Economic Theory: Largely but not exclusively because of these changes in the economy, flaws in economic theory and practice have now been exposed. These flaws in theory flow through to inform the theory and practice of accounting, financial reporting, and business decision making.