The Evolution of Economic Measurement
Let's start by acknowledging that business writ large has done the most good, for the most people, in the history of humankind. But at the same time, let's also acknowledge that the way business has been practiced – and rewarded – for the last 40 years isn't the same as it was the 40 years prior. Or the 40 years before that.
"The economy" is not a rigid system; it has been run using very different objectives in the past…and it can again.
Economic Paradigms Through Time
Business success was measured by multiple stakeholders: employees, communities, long-term sustainability, and profitability. Companies were deeply embedded in their local communities.
The shareholder primacy model emerged, prioritizing short-term returns and stock price above all else. This shift externalized many costs onto workers, communities, and the environment.
We're at an inflection point. The limitations of the shareholder-first model are clear: growing inequality, environmental degradation, and social instability. The system is "unfreezing," creating an opportunity for transformation.
Why Change is Possible Now
We're in one of the most disruptive times in modern history with historic, paradigmatic shifts all happening at the same time: technological, environmental, social, and political. The massive instability can feel daunting, but systems theory tells us that such massive destabilization is exactly when meaningful change becomes possible—a system must first "unfreeze" before it can be transformed.
If something hasn't "always been this way," it doesn't have to always stay this way.
The Role of Privately Held Companies
Privately held companies, especially those not subject to the short-term expectations of shareholders, are uniquely positioned to lead this transformation. These businesses:
- Know their employees and communities intimately
- Have creatively solved myriad problems in running their businesses
- Can make long-term decisions without quarterly earnings pressure
- Are embedded in their communities in ways that publicly traded companies often are not
- Have the flexibility to experiment with new models of value creation
Building the Next Economy
That's why we've launched InterNality. An innovation platform where business leaders can explore how to lead boldly – and commit to building an economy where business, people and the planet thrive together.
We're not coming with THE answers. It's not about control or ideology. It's about empowerment and business-led innovation from people that know how to build, manage change, and care about building a better future for all.