unorganize to grow

It is the contention of the unorganization theory that actual realized personal, corporate and national economic growth is not being maximized in the unorganized world. Because we persist in seeing today’s unorganized world in yesterday’s organized terms and use organized instruments and policies, we are not putting ourselves in a position to take advantage of the increased growth opportunities available in the open, global unorganized world. There remains a tendency to view the world in terms of red OR white, when the reality is various shades of pink.

The rate at which individuals can grow is constrained by ownership and membership commitments such as mort-gages and corporate perks. Corporate growth is constrained by organized systems, policies, structures, management and strategy. Country-wide growth is constrained by governments.

We need to be in a position to maximize the share of potential growth that we actually capture, and thereby CLOSE THE GAP between actual growth and potential growth. To do so, individuals must economize, companies downstructure and countries need to implement technological capitalism and reduce government intervention in economies. This situation is summarized in table 1 below:

Let us now look at some simple calculations which companies, governments and individuals can use to work out their actual and potential growth. These calculations allow us to quantify the under-performance caused by adopting organized practices in an unorganized world.

the grower = actual growth / potential growth

actual growth = potential growth X the grower

potential growth = actual growth / the grower

The grower is a tool which individuals, companies and countries can use to compare their actual growth with their potential growth. In fact, the grower can be defined as the extent to which potential growth is actually achieved.

The higher the value of the grower, the more potential growth was actually realized, and vice versa.

Determining potential growth

Potential growth represents the MAXIMUM level of SUSTAINABLE growth that could have been achieved given the current individual, corporate and national circumstances.

Sustainability means:

In terms of individuals, sustainable growth is the level of growth which can be achieved by business not busyness, by which I mean working smart but not necessarily hard, and spending time productively

For companies, the sustainable growth level is that achieved with optimal resource allocation given current resource levels and configurations

For countries, sustainability represents the level of growth which does not lead to adverse performance in macroeconomic variables. In high growth periods, this unsustainability would be most likely represented by high inflation

Determining the grower

The grower is affected by a combination of individual, company and country-wide behavior and circumstances. The level of actual growth realized is dependent upon the willingness and ability to turn potential growth into actual growth.

Individuals may be lean, mean creative economizers, but can still find that the stage on which they perform is restrictive. In other words, the company they work for is hierarchical and the country they live in is socialist. In fact, if the country is communist and the individual is a brander, then you have what is known as a dissident.

From this logic, we can see that within the calculation of the grower, the potential growth depends primarily on the country and the company, and the actual growth depends principally on the individual.

In such restrictive circumstances, individuals may be able to capture a large proportion of potential growth, and have a high grower. This means that individuals are growing as much as possible WITHIN their current country and company climate. However, this does not mean that we should be satisfied with the low level of potential growth.

Individuals must first get themselves into a mobile and flexible economizing position such that they can actually capture much or all of the current potential growth. Such economizing individuals can and should then change their company, vote for free market oriented political parties and EMIGRATE to countries which have governments with less restrictive regimes with freedom of speech and expression and open access to economic opportunities.

Individuals, companies and governments should all be looking to move across to the most unorganized situations shown in table 2 below:

Moving to a more unorganized environment increases the level of potential growth. The outcome from achieving maximum potential sustainable growth is personal fulfillment for individuals, optimal resource allocation for organizations and maximum economic growth for countries.

The level of unorganization

I will now introduce another variable called "the level of unorganization" which depicts the difference between the current potential in the current situation and the best practice, most unorganized solution, as defined in the most right-hand column in table 1 above, and throughout www.unorgan.com

level of unorganization = current potential growth / maximum potential growth

Once we have worked out the level of unorganization, we can work out the unorganized grower:

unorganized grower = current grower X level of unorganization

Life is about maximizing the value of the unorganized grower. The higher the unorganized grower, the greater the possible personal growth within the optimal free corporate and country environment.

Maximum potential growth is not merely the best implemented practice, but the theoretical optimum. In other words, for instance, China should not simply adopt Hong Kong’s early 1997 systems, but Hong Kong has got to go beyond that optimum and continually improve (i.e. unorganize). None of us are perfect and all of us have room for improvement, not least because the dynamic unorganized world is constantly changing.

This explains, for example, the imperative for central boards of directors of transnational corporations to devolve decision making to local managers in order to respond optimally (quickly, fully and correctly) to local opportunities. This is described in the full text "Unorganization: downstructuring towards collapsible corporations". If the central board do not downstructure, local opportunities will be missed and local managers will leave, with the resulting under-performance (actual growth does not reach its potential) endangering the very position of the central directors.

As the global economy grows, so the rate of maximum potential growth increases for individuals, companies and countries. As such, any tendency for economic units to underperform as demonstrated by a lack of willingness or ability to unorganize worsens. This is the compound effect of the tendency to grow or stagnate: it is reinforced by inflexible or non-responsive behavior. The unorganized thrive and the organized implode.

It can therefore be predicted that the extent to which individuals, companies and countries achieve their full economic potential will depend on the extent to which they ABANDON ORGANIZED PRACTICES AND ADOPT UNORGANIZED PRINCIPLES. The fuller and quicker that people take on board and IMPLEMENT the unorganization solutions of economizing, downstructuring and technological capitalism set out on www.unorgan.com, the more prosperous a future they can expect.

Author: Simon Buckingham

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To make a comment to the author, send e-mail to simon@unorgan.com

 

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