From the Archives...

Review of January 1983 Economic Strategy for Management Center Development

"Selling the dog many times... or the different forms of ownership, compensation, payment and control."

[Matt Taylor Journal page 632, June 24, 1984, 11:02AM]
Capitol Hill, Washington, D.C.

There are two "economics" of Management Centers: One that deals with the cost and expected profit of building a Management Center, or System, and second the wealth that can be created with a Management Center, or System.

The first can be called Stage One economics and it has many aspects recognizable in "old" and "new" economics terms; the second is stage two economics, which is barely comprehensible by today's economic theory and accounting practices.

Today's economics focus almost exclusively on monetary theory and short term profit, very little--in practical terms--establishes a connection between economics and ecology; and very little focus is brought to the theory and practice of "wealth" development. Connection is not made--again, in practical accounting terms--between organized capacity and wealth development. We account many things as a liability, which in fact are our basic wealth and account as profit many dollars which in fact are dollars borrowed from the future. This accounting habit makes us blind to--I claim--the majority of real economic opportunities that are before us, both as a nation and as individuals and corporations.

The basic economic strategy that I have employed in developing Management Centers is to "justify" them in traditional economic terms while avoiding the traps of a slavish or narrow application of "old" economics. This is the stage one economics referred to above. The stage two economics pertains to the long term and "real" justification of the Management Center concept. The financial model outlined on pages 613 and 614 are stage one economics; pages 503-506 start the bridge to stage two. The essence of stage two--in practical terms--is embodied in the 7th Domain: Venture Management, or in what Acacia is calling Enterprise Management. This venture was conceived on a new theory of organization and of the economic consequences of using such an organization.

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