Congress Readies To Vote On The Financial Package--Get Ready For The Post-Wall Street World.

Posted by: Bruce Nussbaum on October 1, 2008

It’s time to step back and see the contours of our redesigned global political economy. The refutation of the past 30 years of neo-liberal market economics—which is what the financial crisis and government enforced resolution is all about—is translating into the creation of a new economic model. The shape of that new economic model is just coming into focus and it will be a year or so until we see it all clearly. But we have clarity on a few things.

For help in understanding where we are going, I strongly suggest you get the last three issues of Rotman, The Magazine of the Rotman School of Management at the University of Toronto. The latest, Fall, issue entitled The Future of Capital, has a piece by dean Roger Martin on the shift in value from capital to talent. This will be a major trend going forward. Over the past 30 years, finance has come to dominate the American economy and while it has helped lubricate Silicon Valley and entrepreneurship, it has also skewered incenstives, compensation and investment. The value of human capital will rise vis a vis financial capital in the years ahead.

In the Winter 2008 issue of Rotman, called Thinking About Thinking, there are two articles on how Design Thinking can deal with the problems of economic and social uncertainty and change, and offer a process of generating options and solutions that manage and mitigate risk.
Martin has a new book coming out on Design Thinking--or what he calls Integrative Thinking--in the months ahead. It's a must-read for this new era we are entering.

Right now we are living life in constant beta. And we need tools and methods to understand and deal with it. Rotman is now a must-read.

Next up--Innovation Economics.

Reader Comments

Jerri Chou

October 2, 2008 1:23 PM

So true. More and more groups are working together to create tangible movements and frameworks that leverage the power of human capital. The current collapse might even pose a ripe time for this new trend and economy to really thrive ala: the theory of creative destruction.

Thomas Figel, Lake Effect Communications, LLC

October 13, 2008 6:06 PM

10/13/08 - Thank you for the tip about Rotman and the articles about how design thinking can help with the current financial environment.

As all the financial events have unfolded, I keep remembering the stories a couple of years ago - one on the cover of BusinessWeek, I think - about how Wall Street and Main Street were detached from one another.

My own opinion is that entrepreneurship will roar in coming months as people with good ideas gather groups of friends and put sweat equity into new enterprises. There are always people walking around with plans in their pockets; I think that, as they did in the 80s and in other times, they will find the present cost structure and the vast need to their liking.

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About

Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

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