Sustainable value and societal welfare is created by companies and its work force bringing value to customers who are prepared to pay for these products or services. A company can only achieve this if the right intellectual capital factors (or intangible assets) are provided and promoted by the society. Financial capital does not make the difference, because it is global and not unique. With the Wissensbilanz/ICS (IAbM) we have the facts and data needed to make good decisions based on what is realistic, on a regional, national basis.
Although this should be self evident, little is happening on a global macro level. To save the Euro, taxpayer’s money is pouring into a system of over-dimensioned bank’s balance sheets, inefficient public sectors and prestige official projects not coming close to giving any sustainable social value.
I do not think that our decision makers deliberately make these wrong decisions. What is missing is an understanding of how economical value is being created over time. With our work with mostly German mid-sized companies and now specifically in the health care sector, we show how our method works successfully on a micro basis. Next step would be to convince our leaders that a macro economy is only the sum of the micros. Good economic policy can only work in the long run when the micro economies work.
Today’s gloom economic outlook for the Western World is not a natural or unavoidable phenomenon. It is a result of human action were financial value creation became more important than real economic value creation. Only a change of the mind set away from shareholder value into stakeholder value can direct us into a better future. In order to achieve this, brave and strong leadership is required. At least, we now have the facts and data to quantify the consequences of this miss management of our resources.
Mart Kivikas, Co-founder of Wissenskapital