Willis Consulting LLC

Purpose Driven CapitalismPlus – Reimagining

Capitalism as a 5 Dimensional Market System with

a 5M Mindset and 3V heartbeat!

~ The Invisible Hand’s Purpose Seed, manifesting itself as a 5D

Market system with a 5M (Meta Events, Means, Metrics, Method &

Mediation) mindset, yielding Triune Shared Value (Shareholder+

Societal + Purpose Driven Motivation/emotion/cultural value)~

Charles Prabakar Executive Global Partner/Managing Director

(Draft For Discussion Purposes Only )

“Capitalism Plus” at a glance…

Some of the complications are both strategic and

structural. Let’s start with some strategic root

causes, and they include, but not limited to are -

Single dimensional capital market mindset.

Lack of standardized causality between

tangible market value and the intangible

expectation building abilities.

Lack of purpose driven motivation and so,

we trade value as opposed to creating

them.

Structural root causes include , but not limited to

are

Insufficient resistance mechanisms to

effectively manage the external expected

& unexpected events .

Insufficient mediating/ regulating agencies.

Ineffective inherent design to equitably

enjoy and bear value by the larger society.

We suggest a Capitalism

Plus approach by re-

imagining the spirit and

essence of Capitalism,

with a profound seedal

chain principle, that is

redesigned as a five

dimensional value market

system(Human Capital,

Intermediate Goods,

Equity capital, Product &

Purpose) with a

fundamentally patient 5M

seasonality mindset (Meta

events, Means, method,

metrics and Mediation) ,

that is then executed

with a socially

accountable Triune

Shared Value (S-Holder,

Societal emotional &

cultural value) heartbeat!

While "Capitalism” is

practiced differently in

different parts of the world,

most practitioners agree,

that capitalism in its current

form is not designed to

sustain and withstand

another financial

meltdown as that of 2008-

10 time frame, and so, the

need of the hour is a

profoundly principled,

fundamentally patient and

socially accountable

capitalism ,as echoed by

Gary Hamel in his MIX

challenge, to meet the

ever changing business

needs of the 21st century,

social media driven,

digitally connected world!

“Trading Value as opposed to creating them fresh”, is the primary challenge of

Capitalism, that is practiced in its current form!

Situation Complication Resolution

Re-imagine the spirit and

essence of Capitalism by

resetting it with a profound

Seedal Chain Principle

Reframe it as a 5 dimensional

Value market system with a

fundamentally patient 5M

Seasonality mindset

Execute it with the socially

accountable Triune Shared

Value (TSV) heartbeat

(Sequel)

Capitalism Re-imagined using Nature’s Seedal Chain (Seed-

Season-Sequel) Principle

Capitalism is re-imagined

as Force - Energy- Power in

Space -Matter-Time

dimensions!

Capitalism is redesigned

as 5 Value Markets with a

5M mindset!

Capitalism’s value is reaped

as Triune Shared Value (TSV)!

It is time to re-imagine the spirit and essence of Capitalism with a profound

seedal chain principle, reframe it with a fundamentally patient 5M seasonality

mindset and execute with a socially accountable TSV heartbeat!

1 2 3

Seed Energy /Matter (Creator/

Orchestrator)

Seasonal Power/Time (Redeemer/

Sustainer)

C-Plus’Emotion/

Motivation Driven

Purpose Seed

Principle Sequel Force/Space (Encourager/

Disruptor)

Market motivation energies (i.e. internal

motivation/expectation to get wealthy),

Resources and capital flow etc.

Social/

Political

Institutions,

Religion,

Philosophies,

Worldviews,

ideology etc.

Banks/money making

Fed type institutions,

trading events,

population migration/

shifting events,

environmental events,

labor force shifting

events, rise of state or

other forms of capitalism,

radical ideology shift

movements(Arab spring,

occupy wall street etc),

and natural

disaster/pandemic etc.)Shareholder Value

Capitalism Plus Creating Triune Shared Value (TSV)

Re-imagine Capitalism’s Purpose Energy Seed with its Seasonal Power & Disruptive Forces!

Force Oriented

Disruptive EventsPower Oriented

Sustaining Events

Energy Oriented Orchestrating Events

Capital Market

IG/RM Market

Labor Market

Product Market

Shareholder Value= Profit x (1-g/ROIC)/ (WACC-g)

Profit

g

ROIC= Margin x Velocity

CV=Jobs-to-

be done/ Price

Human Capital

Incubator/In

termediate

Goods(IG/

RM) Capital“Jobs-To-Be-

Done” Product

Capital

Commercial/

Commodity

Equity Capital

Motivational

Purpose

Seed Capital

Seed Energy /Matter (Creator/

Orchestrator)

Seasonal Power/Time (Redeemer/

Sustainer)

C-Plus’Emotion/

Motivation Driven

Purpose Seed

Principle Sequel Force/Space (Encourager/

Disruptor)

Market motivation energies (i.e. internal

motivation/expectation to get wealthy),

Resources and capital flow etc.

Social/

Political

Institutions,

Religion,

Philosophies,

Worldviews,

ideology etc.

World bank /money

making Fed type

institutions, trading

events, population

migration shifting events,

environmental events,

labor force shifting

events, rise of state or

other forms of capitalism,

radical ideology shift

movements(Arab spring,

occupy wall street etc),

and natural

disaster/pandemic etc.)Shareholder Value

Capitalism Plus Creating Triune Shared Value (TSV)

Reap the value of Capitalism Plus, in three TSV dimensions!

Force Oriented

Disruptive EventsPower Oriented

Sustaining Events

Energy Oriented Orchestrating Events

Seed Energy /Matter (Creator/

Orchestrator)

Seasonal Power/Time (Redeemer/

Sustainer)

C-Plus’ Emotion/

Motivation Driven

Purpose Seed

Principle Sequel Force/Space (Encourager/

Disruptor)

Market motivation energies (i.e. internal motivation/expectation to get wealthy),

Resources and capital flow etc.

Social/ Political

Institutions, Religion,

Philosophies, Worldviews,

ideology etc.

Banks/money making Fed type institutions,

trading events, population migration/

shifting events, environmental events,

labor force shifting events, rise of state or

other forms of capitalism,

radical ideology shift movements(Arab spring, occupy wall street etc),

and natural disaster/pandemic etc.) Shareholder Value

Re-imagine the spirit and essence of Capitalism by resetting it with a profound Seedal Chain Principle

Re-imagine Capitalism’s Purpose Energy Seed with its Seasonal Power & Disruptive Forces!

Force Oriented

Disruptive Events Power Oriented

Sustaining Events

Energy Oriented Orchestrating Events 1

Re-imagine the spirit and essence of Capitalism by resetting it with a profound Seedal Chain Principle

• As it turns out, the best way to re-imagine capitalism is - as a

purpose driven Capitalism Plus, in five dimensions -

• First and foremost, it is all about re-imagining/regrouping the Meta

market’s expected and unexpected events in Force, Energy and

Power dimensions (or space-matter-time dimensions in a larger

universal context) using nature’s energy management principle, to

help design the right type of resistance mechanism for the right

type of event.

– Energy oriented events to be handled with matter dimension

based proactive efficient replenishment mindset

– Force oriented events to be handled with Space/distance

dimension based proactive resistance mindset i.e. (note :

Force=Energy/distance)

• Expected events or manmade events to be handled

with sufficient elastic cushion space to re type resistance

mechanism to bounce back from the impact.

• Unexpected event or Messiah made unexpected events

must have plan B type alternate path of execution to

bounce back quickly.

– Power oriented events, to be handled with time dimension

based proactive effective channeling mindset. (note :

Power=Energy/Time)

• Policies from Social/political institutions, religion, ideology

etc. need to have a timely lever to channel/control its

dosages and its impact on the system.

1

• Reimagining the Means - i.e. from the

current shareholder value focused

multiples method at the ticker level and

GDP at the country level to a three

dimensional Triune Shared value(TSV)

mindset i.e. Stakeholder value +Societal

Value+ Emotional/Cultural value

• Reimagining the Method i.e. from single

dimensional capital market system to a

five market system with a causal chain

among them.

• Reimagining the Metrics with three

dimensional TSV value formulas that are

manifested in 5 different intermediate

forms within each of the five market

systems.

• Reimagining Mediation as self regulated

mechanism using “inside-out”

emotional/cultural motivational energy

driven ethical mindset, with minimal government involvement.

Capital Market

IG/RM Market

Labor Market

Product Market

Shareholder Value= Profit

x (1-g/ROIC)/ (WACC-g)

Profit

g

ROIC=

Margin x

Velocity

CV=

Jobs-to-

be done/

Price

Human

Capital

Incubator/In

termediate

Goods(IG/

RM) Capital “Jobs-To-Be-

Done” Product

Capital

Commercial/

Commodity

Equity Capital

Motivational

Purpose

Seed Capital

Reframe it as a 5 dimensional market system with a fundamentally patient 5M Seasonality mindset

2

Reframe it as a 5 dimensional Value market system with a

fundamentally patient 5M Seasonality mindset

• It all comes down to adding four additional virtual markets on top of the equity capital exchange ( i.e. primarily cash flow value driven)– and link them all together with causality - as outlined in the picture above and explained in detail in our firm’s Purpose driven strategic planning framework (http://www.managementexchange.com/story/strategic-planning-purpose-driven-way-using-nature%E2%80%99s-seedal-chain-principle)

– Purpose equity capital exchange model ,based on the formula -> Purpose value= Profit x (1-g/ROIC)/ (WACP-g)

– Human capital equity exchange, based on human capital growth, per one of my recent hack at MIX site (http://www.managementexchange.com/hack/reforming-performance-management-systems-%E2%80%93-virtual-purpose-equity-vizpity%C2%A9-exchange-way)

– Intermediate Goods Market or Value chain equity exchange based on the formula ->ROIC= Margin x Velocity

– Product Market or customer “Job to be done” exchange, based on the formula -> Consumer/customer value=Jobs-to-be done/Price

– Financial capital market which is today’s’ version of capitalism based on the formula ->Share holder value= Profit x (1-g/ROIC)/ (WACC-g)

•How does these five markets work together from the “day in the life” standpoint? Here are few possible implementation configurations •Tightly coupled “weight factor rating” model, where four Intangible Markets (Purpose, Human, Intermediate Goods and Product market) are configured as a public opinion/rating based markets, with direct linkage to the tangible Capital Market. In other words, traders are expected (mandatory) to submit a “weight factor percentage allocation” of their buy price, among the five markets, say (15%-25%-15%-15%-25%) respectively, which would give a clear indication of the motivation behind their trade (i.e. which market among this 5D market is motivating them to invest on this stock). For example, traders who believe in the management and talent of the company will assign more weight to human market, whereas, traders who believe in the purpose/vision of the company will assign more weight for purpose market and so on and so forth. •Loosely coupled “weight factor rating” model, same as the previous model but the weight factor is decided by the company during the IPO. •Reverse weight/value allocation to the four intangible market based on a pre-established weight factor distribution, say, (10-30-10-10-50), as decided by the public opinion/rating on a day to day basis. •Transparent Internal company metrics driven weight allocation model linked to capital market value (multiples method and/or McKinsey’s Zen valuation formula) using our CPM type system.

2

Seed Energy /Matter (Creator/

Orchestrator)

Seasonal Power/Time (Redeemer/

Sustainer)

C-Plus’ Emotion/

Motivation Driven

Purpose Seed

Principle Sequel Force/Space (Encourager/

Disruptor)

Market motivation energies (i.e. internal motivation/expectation to get wealthy),

Resources and capital flow etc.

Social/ Political

Institutions, Religion,

Philosophies, Worldviews,

ideology etc.

World bank /money making Fed type

institutions, trading events, population

migration shifting events, environmental events,

labor force shifting events, rise of state or

other forms of capitalism,

radical ideology shift movements(Arab spring, occupy wall street etc),

and natural disaster/pandemic etc.) Shareholder Value

Execute it with the socially accountable Triune Shared Value (TSV) heartbeat (Sequel)

Reap the value of Capitalism Plus, in three TSV dimensions!

Force Oriented

Disruptive Events Power Oriented

Sustaining Events

Energy Oriented Orchestrating Events 3

Execute it with the socially accountable Triune Shared Value (TSV)

heartbeat (Sequel)

• Leveraging Michael Porter’s Creating Shared Value (CSV) definition – we

see the following TSV definition emerging –

• TSV is a Purpose Capital driven Motivational/Emotional/Cultural energy

value driven policies and practices that enhance and sustain the

collaborative competitiveness of a company while simultaneously

advancing economic and social conditions in the communities in which it operates.

– CSR = Shareholder value+ Societal value (With no direct linkage to

CA)

– CSV = Shareholder value+ Societal value (With direct linkage to CA as

defined by Michael Porter)

– TSV = Purpose Motivational/emotional energy driven cultural value +

Shareholder value+ Societal value (With direct linkage to SCCA)

3

• One might ask - while it sounds great in theory, what are its pragmatic implications?

• Among many, one key practical implication is Capitalism Plus, by its design, inherently will encourage and

reward those companies with bold and profoundly principled, fundamentally patient and socially accountable

ideas and proposals (e.g. VizPlanet platform), that would work for 10 billion people (as opposed to the current 6

billion), with a triune shared value (TSV) mindset, using multiple forms of capital—purpose, human, IG, product,

and equity.

• In other words, Capitalism plus, in its essence is a purpose driven, three dimensional value balancing market

system (i.e. the “inside-out” motivational/emotional energy value balancing the remaining two “outside-in”

stakeholder and societal value energies) using a 5 dimensional market system, with a collaborative 5M (Meta

events, Means, Mechanism, Methods and Metrics) mindset.

• Simply Put, Capitalism Plus, encourages every citizens to participate in the Free market Capitalism driven

prosperity journey by

– Planting their “purpose driven motivational energy seed” ideas, using nature’s profound seedal chain

principle.

– Germinate itself into a five dimensional value market system (Purpose Market, Labor/Human Market,

Intermediate Goods Market, Product Market and Equity Market) with a fundamentally patient ,5M

seasonality mindset (Meta market events, Means, Method, Metrics and Mediation).

– Yielding a socially accountable Triune Shared Value Portfolio(Shareholder, Societal and emotional/cultural

value)!

Conclusion