the european union in a time of renaissance n.
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  1. THE EUROPEAN UNION IN A TIME OF RENAISSANCE Marc LUYCKX GHISI Dean of Cotrugli Business Academy april 2007


  3. P. Drucker: Transformation Every few hundred years in Western History there occurs a sharp transformation. Within a few short decades, society rearranges itself : its worldview (paradigm), its basic values, its social and political structures, its arts, its key institutions. Fifty years later there is a new world.” Peter DRUCKER: “Post Capitalist Society”.Butterworth Heinemann, 1993, 2001, p.1. april 2007

  4. One of the most fundamental shifts • “We are living through one of the most fundamental shifts in History: a change in the actual belief structure of Western Society. No economics, political or military power can compare with the power of a change of mind. By deliberately changing their images of reality, people are changing the world.” Willis HARMAN Stanford Research Institute (+1997), Founder of the “World Business Academy” april 2007

  5. Transformation’s five levels • Humanity is in danger of collective death • End of the Patriarchal values (CCC) • End of modernity---Transmodernity= post secular, flat, tolerant, new level of responsibility and consciousness. • Knowledge society as a turbo of change • Crisis of all institutions. EU = transmodern structure april 2007

  6. Transition to Transmodern Death ? april 2007

  7. Confronting the anguish of change Acceptation of the Transformation Cloud of deep transformation of our world societies PSYCHOTIC: Everything changes NEUROTIC: There is NO change april 2007


  9. Humanity is in danger of collective death although we have money and technology • End of the Patriarchal values (Command, control) • End of “Modernity”. “Transmodernity” = the best of premodern and modern. post secular, flat, tolerant, new level of resp. & consciousness. • Knowledge society as a turbo of change • Crisis of all institutions. april 2007

  10. The Iceberg of TRANSMODERNITY Level 5 : Credibility gap of all Institutions is increasing dramatically… Level 4 : The knowledge society : post-capitalist society (Drucker) Level 3: End of Modernity: REASON Only Truth, Science, Violence, Pyramids, Control Level 2 : End of Patriarchal myths, sacred and values Level 1 : Danger of Collective Death april 2007

  11. Level 2: END OF PATRIARCHAL VALUES april 2007

  12. MATRILINEAR(-3500) Woman= Goddess, snake = her power SACRED = LIFE tree, blood, birth… Sexuality + Pleasure Power = life giving Beauty + art Creativity PATRIARCHAL God the Father women infer + sin. SACRED= Violent DEATH, blood, cross… Sex pleasure impure Power = to kill Ascetism is better From Matrilinear to Patriarchal april 2007

  13. END OF COMMAND AND CONTROL • Every LEADER will have to shift his approach, and the political structures towards post patriarchal values: • respect for the environment, • Importance of human relations • Fostering the joy of creation, • contact with nature, link with the cosmos, • Interiority, spiritual dimension april 2007

  14. A NEW WOMAN-MAN RELATION • In every couple around the world, we see a hidden transformation of the relation. Hence... some new conflicts! • This means that women and men are obliged to redefine their roles and behaviours. • Few structures are able to help couples in this unexplained transition. SILENCE. april 2007

  15. LEVEL 3: END OF MODERNITY april 2007

  16. Multi level changes... • Structures: From pyramids to void circle • Status of rational thinking • Status of Spiritual aspiration (religion) in public. • Status of truth: real tolerance. • Status of Science and tech. • Status of political violence: beyond war • Status of body, intuition, ethics, esthetics... april 2007

  17. PRE-MODERN MODERN 0. Pre-Modern to Modern : Pyramid to Pyramid GOD REASON Economist Clergy Government Government Men Men Women Women COSMOS = sacred COSMOS = object april 2007

  18. MODERN TRANSMODERN REASON Economist Government Men Women Men ‘above’ the COSMOS 1. From Modern to Transmodern: From Pyramid to void cercle Men part of COSMOS Cultures Centre is empty april 2007

  19. 2. STATUS OF RATIONAL THINKING • Rational thinking has been a liberation struggle against medieval obscurantism. • It has become now, like a mental prison. • Rationality is loosing its divine status. And is only one way to think. • Other ways of thinking like intuition, connection to the cosmos, gain credibility. april 2007

  20. 3. STATUS OF SPIRITUAL ASPIRATION IN PUBLIC • For evident reasons modernity has taken distance from religions. • But in doing this, it has progressively marginalized religions and spiritual aspiration as outdated. • This negation of such an important human dimension is in crisis. • Probably : disinction but not separation. april 2007

  21. MODERN Pyramidal Intolerant Rational = truth Secular (France) Disenchanted NOT Responsible No conscious of whole TRANSMODERN Round table + Hole Radical tolerance Truth exist=“void” Post secular Re-enchanted Collective responsibility New level of consciousness 4. STATUS OF TRUTH april 2007

  22. 5. NEW ROLE OF SCIENCE & TEC. • Science & Technology had received in “modern” times a “divine” status, because they were rational thus true. Now they have to be at the service of our survival in a sustainable future. • Science was above ethics, value free ! Now ethics is back and citizens ask questions. • Science was functioning in a offer economy (please consume what we invent !). • Now science HAS to function in a demand economy (please be part of the solution !). april 2007

  23. 5. SCIENCE • And science is reinventing itself at full speed. • And this happens through hard paradigm conflicts (Tomas Kuhn, Harvard) • Back to a “poetic” approach to nature... (Ilya Prigogine, Nobel prize 1977). april 2007

  24. 6. STATUS OF POLITICAL VIOLENCE • Modernity has created the State as zone of internal NON-violence inside. But outside the borders, citizens are obliged to kill. • Transmodernity has invented structures of non-violence between States: The EU. • But European Governments “sell” the EU as a market... april 2007

  25. 7. STATUS OF INTUITION, ETHICS, BODY, SACRED, DEATH... • Many things are changing • We see that intuition, ethics, esthetics, are really becoming important again. • The very concept of sacred has transformed more in 40 years than in 2000 years! • The way we see death and life after death is also changing completely... • We see a reconnexion of body, mind, soul, intelligence...Towards Reenchantment ? april 2007

  26. CONSEQUENCE: POLITICAL CHOICES (I) • EU should be presented as the 1° Transmodern political project of the XXI° century. • Politicians should dear to say that we are like at the beginning of Renaissance... • They should call people to reflect worldwide on the new sustainable structures of the future. april 2007

  27. CONSEQUENCE:POLITICAL CHOICES (II) • The main world problems are political • World hunger • Education • Water • inequalitiy • The money is there. It would cost 10 to 20% of what is spent for arms... april 2007

  28. CONSEQUENCE: ECONOMIC CHOICES (I) • Politicians and economist should have the courage to say that we are not anymore in the industrial capitalist period. • We are already in the knowledge economy which is post capitalist (Drucker). • But nobody dears to say the truth to the citizens. And they know it .... subconsciously. april 2007

  29. CONSEQUENCE: ECONOMIC CHOICES (II) • And this “knowldege conomy” (Lisbon Strategy of the EU 2000-2010), could be oriented towards sutainability and social inclusion. • We can decide this. A debate is urgent and needed. • But this presupposes that the economists and politicians “wake up” from the “free trade” industrial nightmare which is unable to lead to a sustainable world. april 2007

  30. THE DINOSAUR SYNDROM ! • We are in a time of rapid change. • It is time to speak out and reflect together like in this Congress... • Many structures will become dinosaurs, if they are unable to transform... • Better create new structures without fighting the old ones. april 2007

  31. Policy and anguish • Example: war on terrorism. Seems to foster more anger and terrorism, and “clash of civilizations”. Exactly the opposite result. • Like persecution of Christians • Are politicians able to confront the changes? • What is their mission today? april 2007

  32. Conclusion • Where are you personally? Are you feeling this transition? • Where are Croatian young business leaders? Which paradigm are they in ? • Where does Croatia fit in the European discussion? Which paradigm? • What is the future of Croatia? Transmodern? april 2007

  33. CHAPTER 2:WHAT IS KNOWLEDGE ECONOMICS?(Level 4! ) april 2007

  34. DEFINITIONS • Data: what is on the web, unorganised • Information: is already sorted by google. Overabundance. • Knowledge: is digested by human brain. • Human brain and networks are the NEW TOOLS of PRODUCTION • Wisdom, Knowledge are rare. Not enough. april 2007

  35. A new world... • New tool of production : human brain • New CEO: Enabling creativity and sharing, Caring for humans = new human-centered management • New value creation process : adding K to K. • New Trade: from Free Trade to Free Sharing • New measurements = qualitative “intangibles” • New strategy: beyond war: win-win not win-loose • New definition of Progress = qualitative • Beyond patenting towards “Open Source” • Beyond pyramids towards networks • Capitalizing on cultural capital + gender capital april 2007

  36. 1. NEW TOOL OF PRODUCTION • The tool of production is not anymore machine + technol.+ € • It is human brain = Networks sharing knowledge in order to create new K. • This new tool of productionis more important than capital and technol. • Hence Post capitalist society! april 2007

  37. 2 NEW CEO FUNCTION • Old CEO: command, control, capture • New CEO: • enable the creativity of his “human capital”= tool of Production • Enable and creator of networks around his team. Cannot control networks! • Care for the intangible assets= brand april 2007

  38. 2. CEO AND NEW MANAGEMENT • Human capital is central because it is caring for the tool of production: Please come back! • Thus Management : shifts 180° towards human centeredness = more creativity-centred, gender & culture – centred. april 2007

  39. INDUSTRIAL SOC. Add value to object From steel to car ! Tool is Machine Humans are cost Management is machine-centered Machine is central KNOWLEDGE SOC. Create new K From data, info to K Tool is Human brain in Networks Humans are capital Management is Human-centered Machine is at service 3. NEW VALUE CREATION PROCES april 2007

  40. 4. BEYOND TRADE (I) • If I exchange an object against money, I loose the object. This is “trade”: I win and I loose. “Win-Loose” logic • If I exchange knowledge, I do not loose my knowledge. I win and you win. I am not trading anymore. I share. This is a “win-win logic” of sharing. april 2007

  41. INDUSTRIAL SOC. Free trade of objects Industrial structure Pyramids Unemployment Pollution Quantitative growth KNOWLEDGE SOC. Free sharing of knowl. Post-industrial-capitalist. Network =value creation Self-creation of my job Immetrialization of prod. Qualitaitve growth 4. BEYOND TRADE (II) april 2007

  42. 5. A NEW SYSTEM OF MEASUREMENTS • « Intangible assets » is a new concept invented by Karl Erik SVEIBY (Sweden) • They are becoming more and more important in the knowledge society • Because the knowledge society is about knowledge which is immaterial, intangible and qualitative. april 2007

  43. 5. A NEW SYSTEM OF MEASURE.INTANGIBLE ASSETS (I) • Intangibles assets = • Know how, • Reputation, • Trust in the company, • Structure of the company, • Strategy (balanced scorecards) • Relations with personnel, • Relations with clients, april 2007

  44. 5. A NEW SYSTEM OF MEASURE.INTANGIBLE ASSETS (II) • Relation with civil society • Relation to environment • Relation to our collective Future and sustainability • But also quality of the Networks april 2007

  45. 5. MEASURING INTANGIBLE ASSETS ? • Stock exchange measurements are still looking at financial “tangible” assets (quantitative) but they increasingly look at “intangible” assets (qualitative). • Today a company is measured more and more by its intangible assets. • Example: “Men’s Wear” USA. & “World Business Academy”, “Spirit in Business”. • See also Neskey: april 2007

  46. Potential for greaterparticipation andwider accountability Non-financial indicators grow in importance Transparency Financial indicators remain important 1990 2006 2015 ICT Proliferation 5. Intangible indicators grow april 2007


  48. 6. NEW BUSINESS STRATEGY/ WIN-WIN • Old business strategy is warlike. Battlefield images are frequent. Patriarchal values dominate: “win-loose” • New business strategy: much less violent, “competition through collaboration” is the new motto. • Knowledge behaves like love! april 2007

  49. 7. NEW DEFINTION OF PROGRESS • The industrial & modern defintion of progress is quantitative. More is better. • This defintion is UNSUSTAINABLE • The knowledge society implies a qualitative defintion of progress. • Good new this allows a reorientation of our societies towards sustainability!! april 2007

  50. 8. BEYOND PATENTING • The whole of the industrial production system is based on secrecy and patenting. I have this technology and you have not. So I win! • “Information and knowledge always leak” • In the knowledge economy we will NOT be able to maintain secrecy, neither patenting. • See generic medecines, I-Pod music etc,. april 2007