An epic shift in wealth creation, from the tangible to the intangible

[German title: Eine epische Verschiebung der Entstehung von Wohlstand, vom Greifbaren zum Ungreifbaren]

Knowledge Management is all about people
Philip E. Howe and Martin C. Levin
AccountingWEB News, Jul 11th 2007

We don’t like the unexpected. Storms, accidents, or even unexpected outcomes within our organizations. We like to be in control, we like order, and we like to predict events. The reality, however, is that organizations are nonlinear systems with behavior, like the weather, that is hard to predict.
There is a confluence of events, equal to an organizational version of a perfect storm, that is brewing, and it will have consequences that are difficult to pinpoint. The elements coming together include the following:

  • A wave of baby boomers set to retire
  • Increased entrepreneurship, as measured by business start-ups
  • Foreign students leaving after graduation
  • A dearth of students in science, mathematics, accounting, and other rigorous disciplines
  • A disengaged workforce(1)1
  • Empowerment efforts in retreat
  • Decreasing civility
  • A shift in wealth creation from the tangible to the intangible

The first four elements of the approaching front reflect a shrinking pool of highly skilled workers, or the “creative class.”(2) The next three elements signify shifts within the work environment. The final element, however, is the most critical of all. It represents a sea change in how businesses function and prosper. This epic shift in wealth creation, from the tangible to the intangible, is the source of much consternation and stress all on its own, and deserves a critical examination.

Read the full article online.

Copyright © 2007 AccountingWEB, Inc.. All rights reserved.

Leave a Reply

Your email address will not be published. Required fields are marked *