In reflecting on what I wrote earlier I realize I indicated that value
networks are sustainable systems. That does not really reflect my
thinking and was not well said. The value network elements can help
illuminate the economic aspects of a purposeful network, but any given
value network may or may not be sustainable due to the vaguaries and
whims of the human nodes, resulting in unpredictable responses. I think
we can perhaps make some probability assumptions based on certain
patterns but at the moment we do not have any predictive measures that
are widely accepted that I know of.
Also I really prefer to think of the value network perspective as a
"lens" rather than a "thing." People generally tend to think of value
networks as being synonomous with business webs but organizations have
internal value networks as well as external facing value networks.
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I think I know what is generally meant in the vernacular by “sustainable system,” but it strikes me as flying in the face of what we have been able to observe in systems generally; that is that they all break down eventually. Maybe it’s old hat, but I much prefer “adaptive systems” to “sustainable” since it leaves open the possibility of transformation without closing the door on entropy. It just seems closer to affording a scientific approach to validation.
A healthy eco-system, for instance, is one in which organisms continue to die as well as live. Imagine a system that created more then it consumed –a sort of cornucopia run amok. Sooner or later we suffocate in a heap of fruit.
Instead, the ideal cornucopia is able to adapt its profusion of plenty to perfectly match the changes in demand that, in turn, adapt perfectly to prevailing health and wellness needs of the time.
I keep thinking that business and humanity clash right where capitalism adapts to scarcity by raising prices. No amount of profit will end a drought (or produce more oil, for that matter). The reasonable hope is that “profits” transformed to capital, can be invested to produce alternatives resources that will alleviate scarcity. We may not always like the outcome, but it is sustainable –sort of.
Value network thinking, however, suggests that “profit and capital” are not the only appropriate mechanisms for regulating scarcity. Instead, so the reasoning goes, “networked knowledge workers trafficking in “valuable information” can move that around the network in such a way as to create “opportunity” value (which sounds a lot like financial markets to me). It reminds me of the old 60s gag that “dope will get you through times of no money better than money will get you through times of no dope.”
Correct me if I’m wrong, Verna, but it seems to me you are suggesting that our economic systems would work better (i.e. satisfy more needs) if we attached monetary value to intangibles and were able to pass that value around (sort of like a joint J). I’m no accounting expert, but this still sounds like the value of good will, which I understand is monetized in some legal systems. So, it all seems circular to me. It we all keep coming up with an end game in which the best players are the ones who end up with the most money, I don’t see how this changes anything.
-David Hawthorne.
From: Value-N...@googlegroups.com [mailto:Value-N...@googlegroups.com] On Behalf Of Graham Douglas
Sent: Wednesday, August 30, 2006
6:32 PM
To: Value-N...@googlegroups.com
Subject: Re: Value Networks
Definition
Here are a few more thoughts prompted by extracts from Verna's most recent comments:-
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Yes, you have misunderstood my position. I absolutely do NOT think we
should attempt to put a monetary value on intangibles. In my view it is
completely the wrong question because if you can put a monetary value
on it - it is not an intangible is it? We MUST move beyond thinking of
success only in financial terms or we will never break out of the old
economic thinking. Value network principles are not based on scarcity
but on abundance - the abundance of non material or intangible assets
that have truly been the foundation for the success of human society
since long before monetary systems were invented.
We must learn to work with intangibles AS intangibles and stop trying
to squeeze them into our old economic frames which were based on a
scarcity model around resources that get used up. Intangibles are
relatively easy to generate without capital or physical assets and
especially with intangibles such as knowledge there is a multiplier
effect in that the resource itself multiplies when it is shared or
used. This is completely at odds with the scarcity assumptions that
underlie current economic thinking.
I totally agree with you that our current economic system focused on
profits and money as the only "real" measures of success are leading us
down a path of social and environmental distruction as that system
never factors in the true "costs" of business in terms of social or
environmental impact. That truly has led to a set of economic and
business practices that are unsustainable. Economic success does not
automatically lead to improved quality of life as we can readily tell
in the US which is economically "rich" yet 63% of our population is
malnourished as expressed in obesity. China is enjoying an economic
boom of gigantic proportions, yet the quality of life in terms of air
quality has declined dramatically.
The whole idea of putting attention on intangible assets, intellectual
capital,and value creating networks is to be systematic about working
with intangibles WITHOUT having to justify every activity in financial
terms. Intangible asset thinking and value network modeling offers at
least a glimmer of hope that we might reconcile business and economic
models with the fabric of society and the web of life
Besides, financial measures are lagging indicators - if you want to
build capability and adaptability for the future then you must make
improvements to your intangible assets (non-monetary) and learn to put
those assets into motion in ways that assure continuing success. That
is the world of non-financial indicators.
Goodwill is an elusive idea at best and in my view has not been
successfully monetized in the current system at all. If anything it has
been undervalued and despite the huge gaps between book value and
market value companies have no systematic way of defining what that
even is, much less managing it strategically. I am sure Enron and
Arthur Andersen would have sworn by the high value of their capital
assets and intellectual property (IP), yet even those went up like
smoke over the loss of an intangible asset of reputation.
I have stated this position in my books and white papers, and built one
value network approach based on these assumptions that is gainin some
traction in mainstream buisness. I will continue to elaborate on these
themes in future writing.
Verna Allee
You wrote:
"I absolutely do NOT think we should attempt to put a monetary value on
intangibles. In my view it is completely the wrong question because if you
can put a monetary value on it - it is not an intangible is it? We MUST move
beyond thinking of success only in financial terms or we will never break
out of the old economic thinking."
DITTO! In a forum on (supposedly) KM, I got harassed by a man trying to talk
me into thinking that the success of an initiative toward "making children
happy" could be "making children happy with the lowest amount of money" YUK
Besides, it still doesn't define happiness ;)
You wrote:
"Value network principles are not based on scarcity but on abundance"
In the same forum I was introduced by Bruce LaDuke to the Second
Enlightenment concept, you can find it featured in this site:
http://www.2enlightenment.com
One of its 14 organizing principles is, in fact, switching from an economy
of poverty to one of abundance.
If you take a look at its principles:
http://www.2enlightenment.com/principles.htm
you'll see how many of them are, in fact, characteristics of properly-led
(or formed or "nucleated" as I prefer to use) communities of practice.
I'm thinking about joining the initiative :)
Also Verna I want you to know that I admire you SO much. For how intuitive
AND rigorous you are... you speak of intangibles and "mean business" rather
than some fluffy concept. I really like your work a lot.
Rosanna Tarsiero
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I agree with both of you... but the word "value" has been programmed
into us to think "money".
Ask anyone in a capitalist society about "value" and I bet somewhere in
their answer will be an association with money.
Maybe *value* networks is not the right term???
Valdis
I come from a country (Italy) where the term "value" (ie "valori") refers,
and always had referred to BOTH terms. So "value networks" in my country is
just perfect... the metaphor behind "value", here, encompasses tangibles AND
intangibles.
However, I do agree with you. In your country (I guess the US) it might not
be appropriate! It would be interesting to know more from non-English and
non-Italian members...
How do you verbalize "values" in, say, French, German, Chinese, Maori? Does
it encompass tangibles and intangibles or only one of them? In case, which
one?
Rosanna Tarsiero
|\ _,,,---,,_
/,`.-'`' -. ;-;;,_
|,4- ) )-,_..;\ ( `'-'
'---''(_/--' `-'\_)
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of Valdis Krebs
Sent: lunedì 4 settembre 2006 15.40
To: Value-N...@googlegroups.com
Subject: Re: Value Networks Definition
Oscar Wilde in Lady Windermere's Fan Act III circa 1891:
CECIL GRAHAM: What is a cynic?
LORD DARLINGTON: A man who knows the price of everything and the value of
nothing.
David P-J
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of Valdis Krebs
Sent: 04 September 2006 14:40
To: Value-N...@googlegroups.com
Subject: Re: Value Networks Definition
Thanks for these posts, David, Rosanna, Verna et al. and thank you for the
links, Rosanna.
I am reminded again of Allan Watts' admonishment that most people are
"eating the menu instead of the dinner"
In this group I see hopeful signs that we can shift the focus from the
"representation of value" (menu)(money) to real value (dinner)(real
nourishment)
During the experience on a remote island in Maine there were few
conversations from my work world that carried over into that context but one
was...value networks. And in fact several times I was asked to define value
networks and was very glad to return and find that conversation had occurred
and is going to Wikipedia.
Best to all,
-Eileen
--
Eileen Clegg, President
Visual Insight
www.visualinsight.net
P.O. Box 762
Bodega Bay, CA 94923
707.486.2441
Visuals = the language of intuition.
I think most people on this list "get" the value part as intended. It
is when we talk outside the group, that [in the USA] "value" is usually
money-linked. So we should not be surprised if we are not understood,
or misunderstood. I would interested in how, some of the other
business groups who discuss "value", define it. We have to live with
their definitions also, since others may hear from them before they
hear from us!
Believe me, working with "networks" for almost 20 years I KNOW what it
is like to constantly be misunderstood -- well, at least initially. I
say something about mapping/building networks and people say, "Oh
computers!" or "Oh the Internet!" I say, well we do that too, but we
mostly look at people networks... a look of puzzlement comes over their
faces. "How does that work?" their forehead communicates. And then
I start a short, hopefully succinct, explanation.
BTW, our networkweaving.com site STILL gets Google ads for "Looms"!!!
... if Sergey and Larry can't get it right, then imagine the common
MBA... ;-)
Valdis
But then again I have a rather warped view of the World!
One thing is clear to me though, the pendulum in the commercial world is
swinging in this direction ...............slowly.
Regards
Jeremy
Jeremy Cox MD The Wisdom Network Ltd
www.thewisdomnetwork.com
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of David-Peregrine Jones
Sent: 04 September 2006 20:55
To: Value-N...@googlegroups.com
Subject: RE: Value Networks Definition
You wrote:
"Unless its philanthropy or charity of some sort, there is likely to be a
price attached"
There is a price for philanthropy too, or charity! I gather you aren't
familiar with the nonprofit world, and it is said with the utmost respect.
I am, and I can testify that often their idea of "accountability" is: a)
based on money and their management; b) geared on accountability toward
DONORS (again based on money), not to clients or communities; c) the
companion of a holier-than-thou attitude (cuz they "do good" you know).
The nonprofit world in 2006 is a pale imitation of the rampant capitalism
(with lack of other values) of the 80s.
In other words, nothing to strive for.
By the way is that a dead cat?
:)
Regards
Jeremy
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of Rosanna Tarsiero
Sent: 05 September 2006 08:51
To: Value-N...@googlegroups.com
Subject: RE: Value Networks Definition
It's not THAT fat ;P
And Jeremy,
It's not dead.
A lazy cat napping around is a category of the spirit (connected to
intangible values that put being oneself, taking time for one's needs and
observation above everything else)!
I'm going to buy another Chartreux :)
Rosanna
|\ _,,,---,,_
/,`.-'`' -. ;-;;,_
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'---''(_/--' `-'\_)
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of Stuart Robbins
Sent: martedì 5 settembre 2006 19.12
To: Value-N...@googlegroups.com
Subject: Re: Value Networks Definition
If no one believes something has value, does it still have value?
Verna
Also "value" carries a different connotation I believe in organizations
where the focus is on creation of social good rather than economic
wealth. The value network approach is equally appealing in that world
(AgResearch NZ, Mayo Clinic, Plexus Institute (healthcare), Scottish
Enterpriese, Institute of Public Health Ireland, Environment Canada,
GRI South Africa, World Conservation Union, Global Action Network
Network, Indianna School of Nursing, EBay --- of of these are
organizations I have personally worked with and our practitioners I
believe could easily name another dozen.
Roseanna's point about social service organizations also having a
monetary focus is well taken. Any successful, purposeful network has
tangible exchanges or mandates that result in funding and also
intangible exchanges. I would dearly love to see the terms for profit
and not for profit become obsolete. From where I sit they are all just
value creating networks.
Or, if one "sees" only the monetary aspects of "value", does it also
have "intangible" aspects?
How do we deal with the different realities of insiders and outsiders?
Valdis
The only way to deal with the different realities is to make it
explicit where I am coming from and why. As with any new way of
thinking there is a huge educational effort that has to go on. We often
forget how radical those ideas about "process" and "teams" were in the
early 1980s and the bazillion books and training courses that sprouted
up to serve the educational role. If the value network perspective has
"legs" then the same thing undoubtedly will happen. If it doesn't hold
up we will all just move on to other topics and other experiments.
The original interpretation of the Shroedinger paradox was the principle of
uncertainty (neither being known or measurable, therefore both are
possible). Neils Bohr re-interpreted this to be a principle of ambiguity
rather than uncertainty, and I like his distinction with regard to our
discussion. Value is not uncertain (even if we only have an intuitive sense
that it exists in a specific relationship), however it is ambiguous, which
is why we are inclined toward an explicit definition.
Therefore, and with due respect to all of the discussants to this point, I
believe that, while it may be intellectually stimulating to attempt a
definition of an essentially ambiguous element of life, it might be more
useful to discuss the external (mirrored) characteristics of value-based
exchanges (networks, webs, transformations, transactions) compared to the
characteristcs of exchanges with little or no value. The frame as
reference...
We walk into an art gallery. There are many pictures framed and hanging on
the walls, however, in several rooms, there are also rows of paintings,
unframed, leaning against the wall. We could easily fall into an extended
conversation of the value of art (what is art, how do you measure it, how do
you objectively recognize the absence of value, etc) rather than efficiently
saying, for the purposes of this exercise, I will assume that the framed
works have more value than the unframed works, and I will therefore focus my
research on the framed works. It may not be an inclusive approach, but I
believe it would be 80% accurate, and move the dialogue (about art, about
value) forward substantially.
- -Stuart Robbins (www.systemisamirror.com)
----- Original Message -----
From: "Verna Allee" <ve...@vernaallee.com>
To: "Value Networks" <Value-N...@googlegroups.com>
Sent: Wednesday, September 06, 2006 7:46 AM
Subject: Re: Value Networks Definition
>
It is much more interesting to me to discuss the value of a particular
interaction or set of interactions that we can "frame" in some way and
act upon than delve into intangibles as an abstract. The idea of
intangibles as "deliverables" is that type of framing. Obviously there
is a lot more going on but the framing of certain intangibles as
deliverables helps us understand where can we have the power to act.
Despite the popularity of the term "collective action" we are still
acting as individuals regarding those things we can do directly. There
may well be a collective intent but action is still individual. No one
can manage a complex adaptive system - what we manage are our own
actions, our responses to inputs and our products or outputs. Shared
understanding of the system and factors of overall health and vitality
is essential if we want to express a collective intent or purpose. But
all we can really manage are our own roles.
Congratulations on your new book.
Regards
Jeremy
------------------------------------
The Wisdom Network Ltd
Jeremy W G Cox MA DipM
Managing Director
jere...@thewisdomnetwork.com
Spring Bank House
Spring Bank
Holmfirth
West Yorkshire
HD9 2LL
Great Britain
tel: +44(0)1484-680845
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------------------------------------
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of Verna Allee
Sent: 06 September 2006 17:16
To: Value Networks
Subject: Re: Value Networks Definition
------------------------------------
The Wisdom Network Ltd
Jeremy W G Cox MA DipM
Managing Director
jere...@thewisdomnetwork.com
Spring Bank House
Spring Bank
Holmfirth
West Yorkshire
HD9 2LL
Great Britain
tel: +44(0)1484-680845
mobile: +44(0)7748-181421
www.thewisdomnetwork.com
------------------------------------
-----Original Message-----
From: Value-N...@googlegroups.com
[mailto:Value-N...@googlegroups.com] On Behalf Of Verna Allee
Sent: 06 September 2006 19:22
To: Value Networks
Subject: Re: Value Networks Definition