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Entrepreneurship

The Chemistry of Genius?

September 17th, 2010 // 4:00 am @

New Science on What Makes Quality Education

Click Here to Download a PDF of this Article

Harvard Business School recently emphasized that the major changes in the world tend to come from what they called “disruptive innovators.”

These are surprising innovations that usually come from out-of-the-mainstream sources and drastically change society, business, and other facets of life.

Disruptive innovators are disruptive precisely because they are totally unexpected by the mainstream.

Malcolm Gladwell wrote a best-selling book on the concept, showing that many and in fact most of the major societal initiators come from “outliers.”

Why are so many progresses initiated and led by unknown talent hotbeds, what Daniel Coyle called “chicken-wire Harvards”?

Indeed, Harvard, Yale, Stanford and their counterparts may lead the analysis about innovations, but “chicken-wire Harvards” produce many more innovative projects.

The Innovation “Gene”

Why is more entrepreneurial, innovative and leadership education flourishing in small, humble, usually under-funded environments than in the prestigious, elite halls of endowments and status?

And even when the mainstream and elite institutions take note and attempt to emulate such successes, why do they usually fall short of the smaller talent hotbeds?

The answer is simple. The breeding grounds of initiative and leadership believe in and implement the philosophy of individualized education.

Nearly everywhere else, the emphasis is on systemized models of learning that students must learn to navigate and “fit.”

To reinforce this point, there are many small, humble and under-funded educational models that are not talent hotbeds—almost invariably they are followers of the “systems model” rather than individualization.

Dead Poet’s Society

I well remember a visit years ago to a private school that had just received two major breakthroughs: an endowment from a wealthy parent, and a new president who promised to significantly grow the school.

As I talked to this president, however, I realized that he fully intended to turn this excellent, proven hotbed of talent into a systemized conveyor belt. He felt that this is what the wealthy donor wanted, and maybe it was.

But I could tell after a few minutes of visiting with him that he would ruin the depth, quality and excellent results the school had boasted for the past decade.

Five years later, my worst concerns were unfortunately the reality. The school was no longer a place of deep quality and excellence, but it was much bigger, more bureaucratic, and hardly distinguishable from the local public schools. Indeed, several charter schools in the area offered much higher quality.

The key to this change was teachers. In the public schools, teachers have been penalized for great teaching since 2002. As Harper’s noted:

“Under the No Child Left Behind Act of 2002…U.S. teachers are forced to choose between teaching general knowledge and ‘teaching to the test.’ The best teachers are thereby often disenfranchised by the improper use of education information systems.”

But in private schools, this system is not mandated. However, when such schools apply the systems approach to education, they usually obtain similar mediocre results.

In the old, under-funded days of this high school, the teachers had given their hearts and souls to provide personalized, individualized attention to every student.

As the school turned to industrial systems, these teachers were forced to move on or change their approach from individualized learning to factory-style academia.

Approaching each child with the assumption that she has genius inside, and that the teacher’s role is to help her find it, develop and polish it to improve herself and the world—this is called teaching. Anything else is something else.

Where true teaching occurs, excellence flourishes. This is applicable at all levels, from elementary to high school, undergraduate to graduate programs, and also adult learning.

Individualization of education is the first step to leadership education, and without it quality always decreases.

Seratonin, Adrenaline & Myelin

Science is now beginning to show the reasons why quality in education increases with individualization.

Studies have shown for a long time that students receiving personalized, caring and quality mentorship learn more effectively than those required to conform to a deeply structured and systemized model.

Elites have historically been successful in engaging tutors, mentors and individualizing private schools over less personal conveyor-belt schooling options.

Scientists are now discovering that the individualized method (personalized mentoring, deep practice, long hours of inspired and enthusiastic academic effort) results in drastically higher levels of the neural insulator myelin than the standardized system of education.

Students with higher levels of myelin learn more and remember it longer. It is especially valuable for gaining, maintaining and polishing skills.

As Daniel Coyle writes in The Talent Code:

“The talent code is built on revolutionary scientific discoveries involving a neural insulator called myelin, which some neurologists now consider to be the holy grail of acquiring skill. Here’s why. Every human skill…is created by chains of nerve fibers carrying a tiny electrical impulse—basically, a signal traveling through a circuit.

“Myelin’s vital role is to wrap those nerve fibers the same way that rubber insulation wraps a copper wire, making the signal stronger and faster…each new layer adding a bit more skill and speed.”

This research is in its infancy, but it is already helping us understand that there are neuro-chemical factors in our basic psycho-physiology that are impacted by our learning environment.

Montessori, Charlotte Mason and other great educators have taught this for many years.

Personalized educational models, with dedicated and caring mentors helping learners achieve depth and inspiration in their studies, achieve better results than assembly-line education.

Mentoring Matters

Quality mentors help students learn at least three key things:

  1. How to see their internal greatness and potential.
  2. How to study and practice in ways that greatly increase the flow of learning.
  3. How to repeat this kind of learning experience at will.

These are nearly always individualized lessons; and when they are applied, researchers are finding, the level of myelin and the resultant quality of learning increases.

To increase myelin levels and create talent hotbeds, Coyle says, mentors must create an environment of individualized coaching, be perceptive in seeing individual needs in their students, use shock or intensity to open student minds and then share valuable information, and find ways to really connect with each learner.

All of this is traditional leadership education, based on the same principles as the 7 Keys covered in my book A Thomas Jefferson Education:

  1. Classics, not Textbooks
  2. Mentors, not Professors
  3. Inspire, not Require
  4. Structure Time, not Content
  5. Quality, not Conformity
  6. Simplicity, not Complexity
  7. You, not Them (example)

It would be interesting to study the myelin levels of each. Say, for example, a study of myelin levels in students whose teachers emphasize the “inspire” approach versus those with more “requirement-oriented” methods. There could be many other examples.

Individualization Breeds Innovation

One thing is clear, if not yet scientifically studied: Most parents and teachers who apply the 7 Keys see significant, drastic and lasting increases in the quality of their students’ and their own learning.

Personalized education is more effective in helping students learn in their areas of interest, and it also outperforms generally in math, science and technology.

In the decades ahead, as in decades past, many of the most innovative ideas and projects are likely to come from talent hothouses outside the mainstream—places where dedicated and caring mentors help young people see their huge potential, start to discover their great inner genius, and feel inspired to do the hard and effective work of getting a great education.

Individualized, mentored, intensive learning has better results than standardized, rote and minimum-standards systems.

Click Here to Download a PDF of this Article

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Oliver DeMille is the founder of the Center for Social Leadership, and a co-creator of TJEd.

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah.

 

Category : Education &Entrepreneurship &Featured &Science

Mini-Factories: The Greatest Freedom Trend of Our Time

September 14th, 2010 // 4:00 am @

The following is an excerpt from Oliver’s recent book, The Coming Aristocracy: Education & the Future of Freedom.

If freedom is to reverse the onslaught of American and global aristocracy, it will likely do so through the greatest freedom trend of our time.

This trend is revolutionizing institutions, organizations, relationships, society and even nations around the world. It is still in its infancy, and many have yet to realize its potential.

The experts tend to overlook it because it seems small. It will likely always seem small because it is a “bottom-up” trend with no “top-down” organizations, alliances, or even affiliations.

Truthfully, it isn’t even a single trend at all–it is thousands of small trends, all following a similar pattern.

Malcolm Gladwell called part of this trend “outliers,” Harry S. Dent called it the “customization” explosion, Alvin Toffler said it is the wave of “revolutionary wealth” as led in large part by “prosumers,” John Naisbitt named it the “high touch” megatrend, Stephen Covey called it the 8th Habit of “greatness,” Daniel Pink coined the descriptor “free agent nation,” and Seth Godin refers to it as “tribes.”

Others have termed it “social entrepreneurship,” “the new leadership,” “a new age,” and even “the human singularity.”

All of these touch on facets of this freedom trend, but I think the best, most accurate and descriptive name for it is the “mini-factory” model.

Modernism came with the factory–the ability to mass produce. This revolutionized the world–economics, governments, how we spend our time each day, what we eat and wear, relationships, the size and functions of our homes and cities, etc.

Today the mini-factory is changing everything just as drastically.

In ancient times the wealthy set up estates or fiefdoms to cover all their needs, and the masses worked to provide the needs of their aristocratic “superiors.”

In modern times the factory provided mass goods and services.

Imagine the impact on everything in our lives if each family could provide all, or even many, of its needs for itself–and do it better than kings or politicians ruling over working peasants or even corporations employing workers to produce goods and services.

Such is the world of the mini-factory.

How Does a Mini-Factory World Function?

For example, what if parents could educate their children better than local school factories, with the best teachers, classes and resources of the world piped directly into their own home?

What if a sick person had more time and motivation to research the cases of her symptoms than the factory doctors, and the availability of all the latest medical journals right on her computer screen?

She would also have holistic works, original studies, alternative and collaborative experts, and the ability to email the experts and get answers in less time than it would take to wait in the hospital lobby.

Ten friends would likely send her their experiences with similar illness within days of her mentioning casually online that she was sick. If she chose a certain surgeon, a dozen people might share their experiences with this doctor.

What if a mother planning to travel for family vacation could just book flights and hotels herself, without calling the “expert” travel agent? Maybe she could even choose seats on the flight or see pictures of her hotel room–all in her own home between her projects and errands.

Welcome to the world of the mini-factory. I purposely used examples that are already a reality. But they were just a futuristic dream when writers like Alvin Toffler and John Naisbitt predicted them before 1990.

Technology has helped it, but the impetus of the mini-factory trend is freedom. People want to spend less time at the factory/corporation and more time at home. They want to be more involved in raising their children and improving their love life.

In an aristocracy, these luxuries are reserved for the upper class. In a free society, anyone can build a mini-factory.

What is a Mini-Factory?

A mini-factory is anything someone does alone or with partners or a team, that accomplishes what has historically (meaning the last 150 years of modernism) been done en masse or by big institutions.

If a charter school provides better education for some of the community, it’s a mini-factory. If it does it at less cost and/or in less time spent in the classroom, so much the better. A homeschool or private school can be a mini-factory.

Of course, if the charter, private, or home school does a worse job than the regular factory, it is a failed mini-factory.

If joining a multi-level company and building it into a source of real income serves you better than an employee position, it’s a mini-factory.

If downsizing from a lucrative professional job in Los Angeles to a private practice or job that pays much less but allows you twice as much time with your family and a more relaxed lifestyle in, say, Flagstaff or Durango and makes you happier, it’s a mini-factory.

Entrepreneurship, alternative education, the downshifter movement, environmental groups, alternative health, the growth of spirituality, community architecture, the explosion of network marketing, home doctor visits, the rebirth of active fathering, and so many other trends are mini-factories.

How do Mini-Factories Impact Freedom?

It all comes down to this: Big, institutional, non-transparent, bureaucratic organizations are natural supporters of aristocracy. Freedom flourishes when the people are independent, free, and as self-sufficient as possible.

I am not suggesting going backwards in any way.

Forward progress is most likely in a nation that is both well educated and highly trained, where big institutional solutions are offered wherever they are best and individuals and groups seek smaller solutions where they better serve their needs, where free government enterprise rules apply and there are no special benefits or perks of class (either conservative aristocracy or liberal meritocracy), and where government, business, family, academia, religion, media, and community all fulfill their distinct, equally-important roles.

Such a model is called freedom. It has been the best system for the most people in the history of the world, and it still is.

To adopt freedom in our time, either the aristocracy must give up its perks and voluntarily restructure society, or the masses must retake their freedoms bit by bit, day by day, by establishing mini-factories.

Mini-factories will be more successful if each person only does a few, and does them with true excellence.

Freedom will flourish best if there is no organization or even coordination of the mini-factories; if individuals, partners, families and teams identify what is needed in the world and in their own lives and set out to deliver it.

This is especially hard in a time like ours where the employee mindset wants someone to “fix” things (like the economy, health care, education, etc.), exactly when an entrepreneurial mindset is most needed to take risks and initiate the best and most lasting changes.

If real, positive, and effective change is to come, it will most likely be initiated by the people acting as individuals, small groups, and teams.

If it comes from the top, it will tend to only bring more aristocracy, and the day of freedom will be over for now.

Whatever your mini-factory contribution might be, consider that it will help determine the future of freedom.

Is it Worth the Challenge?

Mini-factories can be hard to establish and challenging to build. Many people fail once or several times before they learn to be effective.

But the type of learning that only comes from failing and then trying again is the most important in building leaders and citizens who are capable of maintaining freedom in a society.

Note that this very type of education is rejected in a training model of schooling, where failure is seen as unacceptable and students are taught to avoid it at all costs.

This mindset only works if an aristocracy is there to take care of the failures.

In a freedom model, citizens and leaders learn the vital lessons of challenges; failures and wise risk-taking are needed.

Starting and leading a mini-factory, and indeed all entrepreneurial work, is challenging.

Those who embraced this difficult path in history established and maintained freedom, while those who embraced the ease of past compromises sold themselves and their posterity into aristocracy.

In the long term, though, aristocracy is much harder on everyone than freedom.

What Will You Build?

As you consider what mini-factories you should support, start, and build, just ask what things could be done (or are being done) better by a small mini-factory than by the big organizations that try to control nearly everything in our world.

If it could be done just as well by a mini-factory, the change to the smaller entity can drastically promote freedom. If it can be done even better by a mini-factory, it is better for life itself!

The mini-factory is the new vehicle of freedom.

Take a mini-survey: What are your pet complaints? Government? Develop family government models. Health Care? Educate yourself on prevention and self-care. Education? Learn the principles of Leadership Education. Media? Start a blog. Entertainment? Develop a group of hobbyists who share your interests, whether it be Harley road trips, ice fishing, scrapbooking, etc.

You get the idea: Live deliberately, and do not wait for institutions to change to meet your needs.

Do not waste your energy or good humor on complaining.

Find a mini-factory that does it right and get behind it–or start one yourself. So many are needed, and they can bring the miracle of freedom!

The future remains unseen. It is the undiscovered country.

Many ancients felt that fate drove the future, but the idea of freedom taught humanity to look each to his/herself, to partner with others, and to take the risk to build community and take action now in order to pass on a better life to our children and our children’s children.

Today, that concept of freedom is waning–slowly and surely being replaced by a class culture.

Those who love freedom, whatever their stripe–be they green, red, blue, rainbow, or anything else–are needed. They need to see what is really happening, and they need to educate themselves adequately to make a difference.

The most powerful changes toward freedom will likely be made by mini-factories, in thousands and hopefully millions of varieties and iterations.

Aristocracy or freedom–the future of the globe–hangs in the balance…

Click here to learn more about the mini-factory trend and to purchase a paperback copy of The Coming Aristocracy. Click here to download two hour-long webinars with Oliver DeMille explaining mini-factories.

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Oliver DeMille is the founder of the Center for Social Leadership, and a co-creator of TJEd.

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah.

 

Category : Aristocracy &Business &Culture &Economics &Entrepreneurship &Featured &Liberty &Mini-Factories &Mission &Producers

True Abundance: The 5 Types of Producers

September 9th, 2010 // 11:31 am @

In The Coming Aristocracy I speak of “mini-factories,” which are individuals, teams, partnerships, or small organizations doing things that have traditionally been handled by large institutions. Successful mini-factories are operated by “producers.”

This article describes all types of producers and why they are vital to a free, healthy, and prosperous society.

*Special thanks to Les McGuire for this series.

Prosperity and abundance in a society depend on a certain type of person: the producer. Societies with few producers stagnate and decay, while nations with a large number of producers vibrantly grow — in wealth, freedom, power, influence and the pursuit of happiness.

Producers think in abundance rather than scarcity, take initiative instead of waiting for someone else to provide them with opportunity, and faithfully take wise risks instead of fearfully believing that they can’t make a difference.

In contrast, non-producers provide very little leadership in society and cause more than a majority of the problems. In history, as Jefferson put it, producers are the most valuable citizens.

Of course, he was speaking directly of farmers, but the principle applies to all those who add significant value to society. Non-producers consume the value that is added to society, but they create little value.

But who are the producers? Fortune 500 executives include themselves in this category, and so do small business owners in their first month of operation. Successful investors call themselves producers, as do unsuccessful day traders who claim that they just “haven’t had their lucky break yet.”

Clearly, just calling yourself a producer doesn’t make you one.

In fact, there are at least five types of producers, and each type is vital to a successful civilization. Each of the five creates incredible value, though the currency of the value is not always identical. Without any of the five types, no society succeeds and grows. When all five are creating sufficient value, no society has ever failed.

Producers are needed — all five kinds of them. These are the following:

  1. Prophets, Sages, Philosophers
  2. Statesmen
  3. Investors
  4. Entrepreneurs
  5. Intrapreneurs

Prophets, Sages, & Philosophers

The highest level of value creation comes from prophets, sages, and philosophers.

This category of producers is not limited to the Biblical-type prophets who spoke directly with God, but also includes anyone who teaches true principles. This makes these producers the most important type, because without clearly understood principles all the other types of producers fail.

Indeed, the other producers succeed to the exact extent that they understand and apply true principles.

Prophet-producers include Moses and Paul, who share God’s wisdom with us, and also sages like Socrates or Confucius or Bastiat, gurus like Edward Deming or Peter Drucker, philosophers like Buckminster Fuller or Stephen R. Covey, and those who inspire us to serve like Billy Graham or Mother Teresa.

Whether you agree or disagree with these people, their wisdom causes you to think, ponder, consider, and ultimately understand truth. By applying these truths, a person is able to produce.

Even if you just sit and ponder, letting the truths come to your mind through deep thought or hard experience, true principles are still passed to you through spiritual or creative means.

God is the greatest producer in the Universe, and He shares true principles with us so we can also produce. For value to be created, true principles must be applied.

Ironically, because God, prophets, and other wise people often share their wisdom without asking for monetary compensation, sometimes other types of producers discount the value of their contribution.

But make no mistake: revealing and teaching true principles is the highest level of creating value.

Whether we learn principles through inspiration or intuition, or from the lessons gained through hard work and experience, without principles we cannot produce.

Parents and grandparents are among the most important producers, because they teach principles most effectively — or not. When they don’t, the whole society suffers.

Statesmen

The next type of creating value comes from statesmen.

Do not confuse statesmen with politicians and bureaucrats, who are often worse than non-producers because they actually engage in anti-producing.

In contrast, statesmen create the value of freedom in society. The level of freedom in any nation is a direct result of the actions of statesmen — past and present.

If great statesmen like Cato, Washington, Jefferson, or Gandhi are present, a nation will throw off its enslaved past and adopt new forms and structures which ensure freedom of religion, freedom of choice and action, freedom of property and commerce, and other freedoms.

Together the value created can be called life, liberty, and the pursuit of happiness. Take these freedoms away, and entrepreneurship and investment fade and disappear. There are no exceptions in history to this pattern.

Statesmen like Lincoln, Churchill, or Margaret Thatcher keep a nation from rejecting its freedoms and moving back into a cycle of tyranny and anarchy, where little production of any kind occurs.

In short, without principles there is little freedom, and without freedom all other kinds of production shut down, are regulated out of existence, and cease to be viable options.

No matter how entrepreneurial your spirit, you would not have created much value in the economy of Nero’s Rome, Russia under Stalin, or even Boston under the Stamp Act.

Without freedom, only prophets survive as producers — all other types of producers need both principles and freedom to flourish. The greater the understanding of principles and the freedom of the society, the greater the opportunities for producers.

Indeed, almost nothing creates more value than increasing freedom.

Only when freedom is widespread would the other types of producers have the peace to think that statesmen don’t add value. And frankly, when freedom is widespread is the very moment that it is in the most danger of being lost — it is at such times that statesmen are the most valuable producers.

Of course, the well-known statesmen like Lincoln or Jefferson only appear on the scene when there are a lot of lesser known individuals studying, writing about, talking about, and promoting statesmanship. Only generations with lots of statesmen produce true freedom that allows widespread educational and economic opportunity.

Most of the history of the world shows the absence of such statesmanship, so most of the population of the world were serfs, peasants, slaves, and other non-producers. Yet it is the true nature of all mankind to be producers, leaders, nobles.

Jefferson called this the “natural aristocracy,” and it happens only in those rare pockets of history where statesmen create and perpetuate freedom. Next to true principles taught by prophets, sages, and philosophers, freedom is the highest value that one can add to any society.

Investors & Entrepreneurs

The third type of producer is the investor, and the fourth type is the entrepreneur.

This needs little commentary among producers, who nearly all realize that entrepreneurship is necessary to create new economic value and that even the best entrepreneurial ideas and leaders can fail without adequate capitalization.

Robert Kiyosaki lists investors as the highest of his cash flow quadrants and business owners, or entrepreneurs, next. He is right on. Without investors, many, if not most, entrepreneurs would fail. Without both “I’s” and “B’s,” to use Kiyosaki’s language, no society can make significant or sustained progress.

Moreover, without investment and entrepreneurship many of the principles taught by prophets and most of the freedoms vouchsafed by statesmen would go unused — and eventually be lost.

Prophets, sages, philosophers, and statesmen are dependent on investors and entrepreneurs, and vice versa. As I said, no society is really successful unless all five types of producers effectively create value in their unique but interconnected ways.

Part of the value created by investors and entrepreneurs is obvious: They provide capital and establish institutions which build society. Every family and every individual benefits from their services.

Perhaps less known, but just as important, investors add the vital value of experience. Kiyosaki and Buffet both affirm that without personal knowledge and significant experience in a business, almost everyone who tries their hand at investing fails.

A society without adequate investment and entrepreneurship will see little, if any, progress.

An American, a Frenchman, & a Russian

The old joke is told of an American, a Frenchman, and a Russian, lost in the wilderness, who find a lamp and rub it. Out comes a genie. He offers them each one wish, for a total of three.

The American pictures the large ranch owned by the richest people in the valley where he grew up, and wishes for a ranch ten times its size, with flowing streams and meadows full of horses and cattle. His wish is granted and he is transported home to his new life.

The Frenchman pictures the farm and cattle of the largest estate from his home province, and pictures one just like it. Again, his wish is granted.

Finally, the Russian pictures the land and herds of the rich family in the steppes where he grew up, and wishes that a drought kill the cattle, dry up the grass, and bankrupt the aristocratic family.

The joke isn’t really very funny, though it brings big laughs with audiences of producers. They get it.

The Frenchman, thinking like an entrepreneur, wants the good things that life provides, and is willing to go to work to produce them. The American, who thinks like an entrepreneur and an investor, is willing to go to work also, but wants to see his assets create more value. The Frenchman wants value, the American plans for value, increased market share and perpetual growth.

In contrast, the Russian in this parable can only think of one thing — getting even with those who seem to have more than him.

This is the same as Steve Farber’s lament about the sad state of our modern employee mentality — where “burn your boss” is a slogan of millions of workers who see their employer as the enemy.

The Employee v. Owner Mindsets

Initiative, vision, effective planning, the wise use of risk, quality execution — all are the contributions of entrepreneurs and investors. Without them, any society will decline and fall.

Yet the non-producer mentality is often deeply ingrained in most people. For example, a visiting speaker once told the student body of how challenging it was to get his employees out of their “serf” mentality.

As the founder of a growing manufacturing technology company, he pulled in all his two dozen employees and offered them liberal stock options. He explained that if the company met its projections, they would all be very wealthy — and he abundantly wanted to share the prosperity.

Yet only a few of them would take the options. They only wanted cash salary, and mistrusted the whole concept of stock ownership.

At first he just offered it, thinking they’d all jump on board. But when only a few did, he pulled them in one by one and tried to make the case for stock. Still, only a few more took the stock.

The company grew, expanded, and then its value soared. Suddenly, one month a half dozen of the company’s employees were independently wealthy. They met, made plans, some stayed with the company and others moved on.

But the real story happened with the eighteen who had refused the stock. They were still paycheck-to-paycheck employees. And they were very angry! Most of them met with the founder in his office, and many of the meetings ended with yelling, names called, and doors slammed.

The entrepreneur couldn’t believe it. NOW these employees wanted their millions. But it just doesn’t work that way. “I begged you to take the stock,” the owner told them. “Now, I can’t help you. Why didn’t you take it when I offered?” he asked.

They had no answer. Only that: “I worked as hard as Jim and Lori, so why can’t I get the same payment?”

Entrepreneurs and investors understand that work is very, very important, but that high levels of compensation come to those who create value. Like the Russian in the joke above, this man’s employees felt they had been “ill-used.”

Consider the impact of this scarcity mentality on any society that adopts it. Freedom is naturally lost, and prosperity slows down and eventually becomes poverty. Entrepreneurs and investors are essential to societal success.

Intrapreneurs

The fifth type of producer is the intrapreneur.

In a free society, investment capital is plentiful — but only effective entrepreneurs and intrapreneurs can turn capital into increased value. This takes initiative, wise risk and leadership, just like the other types of producing.

While entrepreneurs found or own businesses, intrapreneurs work for and lead established businesses — but unlike traditional employees, intrapreneurs lead with the Producer mindset. They run their department, team, or company with an abundance mentality, an attachment to true principles, and a fearless faith in people and quality.

Intrapreneurs don’t really have jobs even though they are usually W-2 employees. Like entrepreneurs, intrapreneurs consider themselves on a mission to help society, to give it what it needs and wants, to truly serve others.

Like all producers, they believe in a deep accountability, refuse to assign blame, don’t believe in failure, and give their heart and soul to serve the customer. They add huge value in financial terms, leadership, and relationships — sometimes with people they’ve never met.

They pour quality into everything they do, and thereby deeply serve all who benefit from their product or service.

Great entrepreneurs and intrapreneurs have a deep faith in the market, as long as it doesn’t go against true principles or subvert freedom.

Without the initiative and risk of entrepreneurship, few intrapreneurs would have a place to work and serve; likewise, without intrapreneurs there would be few successful companies. Indeed, it is hard to imagine that there would be any.

The Synergy of Created Value

For any company to succeed, all five types of producers must fulfill their unique roles. This is even more true for any nation.

Producer Type Currency
Prophet Principles
Statesman Freedom
Investor Capital
Entrepreneur Prosperity
Intrapreneur Quality

To see how vital all five types of producers are, consider the past. Major world powers in history have failed in the same way.

First, the people stop giving heed to the wisdom of the prophets.

Second, voters or those in power replace statesmen with politicians, whereupon freedom steadily decreases.

Third, the natural result is increased regulations and taxation, ridiculous lawsuits and judicial decrees, and governmental policies that discourage and then attack producers, initiative, and the abundance mentality in general.

Fourth, investment capital flees the nation to follow the Rule of Capital — it goes where it is treated well.

Finally, the people have a scarcity mentality, refuse to listen to the prophets or elect statesmen, and entrepreneurs go where investment gives them opportunity. The nation stagnates and declines.

Egypt, Israel, Greece, Rome, Spain, Italy, Bismark’s Germany, and Han China all followed this pattern. Each was a major center of world power, influence and prosperity, and each declined into a third world nation. France copied this pattern in the 1800s, Britain followed it in the 1900s, and the United States is on an identical track today.

Specifically, the U.S. is at the point where it is increasing its regulation, experiencing absurd lawsuits and court decisions, and increasingly adopting policies that discourage entrepreneurship. The next step is to openly attack investment and entrepreneurship.

And when investors find higher profits in other nations, while facing decreasing returns along with public hostility and rising taxes at home, U.S. investment will dry up. History is clear on this point. There are no exceptions.

The only hope is for a new generation of producers to effectively promote freedom. In fact, the U.S. has been at this point twice before — in 1860 and again in 1939. Both times enough statesmen arose, most of them unknown to all except avid readers of history, to push aside the politicians and save our freedoms. Britain saw the same thing happen in 1216, 1620, 1815 and 1937.

Other nations have followed a similar pattern. When the people listen to the prophets, statesmen promote freedom, and investors and entrepreneurs/intrepreneurs build the nation.

When the sages are ignored and statesmanship is seen as abstract and worthless, investors go elsewhere — capital flees to other nations, and the home country declines. With such decline comes moral decay, the loss of political and economic freedom, and the end of opportunity.

Abundance is a true principle, yet through history most governments have made it their major goal to crush abundance and prosperity in the masses and give it to the aristocracy or royalty.

Anyone who thinks this can’t happen in America hasn’t closely studied history.

Overcoming 3 Crucial Mistakes

Many producers make three predictable mistakes. Any producer who knows these mistakes and avoids them will be a better producer and create more lasting value in society.

Producer Mistake #1: The Generation Gap

First, producers seldom encourage their own children to follow the producer path. Many young producers will disavow this, arguing that they’ll do all within their power to teach the abundance mindset to their children.

And most of them do, until the children start to get close to adulthood. At this point, many producers realize just how hard the producer role is in life and seek to help their children avoid the pain and challenge of this path.

Many producers recommend that their children become professionals — doctors, lawyers, accountants, engineers. It is ironic how many very successful college-drop-out producers make sure that all of their children attend the most prestigious colleges available and major in the normal career fields.

Even the producers who train their oldest child to follow in their path often send the younger children in other directions. And hardly any producers pass along the producer mindset to their grandchildren.

Of course, if children or grandchildren choose to take a different path in life, it is usually wise to support their decisions and love them unconditionally. But training them in social leadership, abundance, creating value, serving society, and the producer mindset is good for them no matter what path they take in life.

The historically effective solution for this is for producers to put real time, thought, planning and execution into their grandparenting role — long before they are grandparents. Quality grandparenting is a way for all producers to engage the prophet role for their family, to help pass on their wisdom and understanding of true principles to future generations.

Great parenting fulfills this same function, and is part of propheting — the highest level of production.

Producer Mistake #2: The Blinders

The second mistake many producers make is to think that their particular brand of producing is the only one that creates real value.

Like the old parable of the carpenter who believes that all of the world’s ills can be fixed with a hammer, sometimes producers get so focused on their type of producing that they narrowly discount the value of the others. Focus is good, but narrow thinking usually limits one’s effectiveness.

For example, a statesman who believes that changing government is the only real answer to society and that freedom will fix all problems, will likely reject the moral teachings of prophets and consider them mere “philosophy.” Such a person limits his statesmanship because he just doesn’t get it.

So does the statesman who thinks freedom is the only goal, and that entrepreneurs are just in love with money — he will likely try to use law against entrepreneurship, which is the opposite of statesmanship.

A true statesman sees that all five types of producers are vital to society. Similarly, when prophets undervalue statesmen, freedom of religion and independent thinking are often lost.

Likewise, an entrepreneur who discounts the teachings of prophets may feel successful because he’s made a fortune selling pornography. “After all, I just gave the market what it wanted,” he says.

No abundance-minded entrepreneur would think this, because value is only created when principles and freedom aren’t attacked. If economic value reduces moral or freedom values, total value is actually decreased.

Or, consider the entrepreneur who thinks building profitable businesses is the only way to create value and therefore does little to promote statesmanship — in his older and wiser years he will likely regret the regulated and declining world which he sees his grandchildren inheriting.

When entrepreneurs undervalue statesmen, politicians and bureaucrats win the day and capital is discouraged and eventually attacked. The wise entrepreneur or investor will see the great value added by prophets and statesmen, and he will create more value in his life because his broader view will help him make better decisions.

The examples could go on, but suffice it to say that significant problems occur when any of the five devalue any of the others. However, when all five types of producers understand, highly value, and actively support each other, all types of producers experience synergy — and the value created is exponentially increased.

Producer Mistake #3: Arrogance

Finally, the third common mistake made by producers is to look down on non-producers.

One of the true principles taught by prophets is that every person is inherently as valuable as any other. True abundance means that we respect people, whatever their chosen path — as long as it is good and honorable.

Producers, all five types, are truly vital to society, but that doesn’t make producers any better than anyone else. In fact, true abundance producers know that every person is a genius. Every single person. Some decide not to develop it much, but everyone is a genius. And producing is really just about getting people to develop that genius.

Producers who understand this point are the most effective, because they do it all for the right reasons — a true love of and desire to serve others. This is what abundance really means. Everything else falls short.

This is true abundance, so abundant that you spend your life voluntarily serving others (in contrast, true scarcity would be to spend your life on yourself). Real value means people value — and creating value really means helping people choose better lives.

This is what all five types of producing are all about.

***********************************

Oliver DeMille is the founder of the Center for Social Leadership, and a co-creator of TJEd.

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah.

 

Category : Culture &Entrepreneurship &Featured &Government &History &Leadership &Liberty &Mini-Factories &Statesmanship

What Does the Health Care Law Really Mean?

March 27th, 2010 // 1:28 pm @

If you listen to conservative leaders or Fox News, the passage of the Health Care bill that President Obama signed into law is, and I quote, “the apocalypse.”

Democrats and MSNBC, on the other hand, are hailing it as everything from the greatest legislative accomplishment since Civil Rights to a modest first step in a long line of needed government interventions in our society.

Pundits from the right are calling it the advent of a new era of worsened socialism, while liberal icons like Al Sharpton say that if it is socialism, then we voted for socialism in the last election—because the Obama Administration is simply delivering what Candidate Obama promised.

The sides are as furiously divided as when Jefferson and Hamilton laid into one another or when Nixon left office.

Liberals announce that Republicans hate children and families (or they would have supported the Health Care Bill) while Tea Parties urge their supporters, “Don’t Retreat; Reload!” Weekly network and cable news shows are full of experts heatedly or rapturously speaking in extreme terms—depending on which party they support.

As for the official political parties, they are vocally gearing up for the 2010 mid-term elections. One side claims the momentum of victory, while the other promises to “Repeal and Replace” the new Health Care law—and both provide long anecdotal lists of offenses as they protest the lack of civility.

But what does this all mean for the regular people, citizens, families, entrepreneurs, small businesses and workers of America? News reports, periodicals and websites from both sides of the aisle and numerous other organizations give answers to this question. Again, those that lean left tend to expound the great benefits of the new law while those that tend right outline its failures and even perils.

A Different Viewpoint

I’m coming at this from a totally different outlook. I’m hoping that all of us, whatever our political views, will realize that the passing of the Health Care law signals something much bigger than political parties. It is even bigger than the future of our economy, or of liberalism or conservatism.

It isn’t Armageddon, and it’s not the end of our challenges and time to wildly celebrate. It’s something different, something very real, and something every American should know about.

One of the great imperatives of a classical leadership education is innoculation against the political or expedient fury of the moment, to acclimatize the individual to a broader view in the context of history and principle—because as important as any event may be, it is best understood in the larger perspective of broad historical flows, patterns, waves and cycles. The passage of Health Care is no exception.

Indeed, the one thing that both sides and pretty much all independents and moderates agree upon is that passage of the Health Care law is incredibly important. This is true. It becomes even more significant to us when we see its real place in the patterns of history. So, what are the broader patterns and trends that point to the real significance of this law?

The Fourth Turning

 height=For well over a decade I have been recommending a modern classic by the name of The Fourth Turning. If you’re familiar with it, feel free to skip down to the next section.

For those who have never read it: authors William Strauss and Neil Howe describe a historical cycle where periods of Crisis are followed by a new Founding, then an Awakening where people challenge the principles of the Founding, then an Unraveling where two sides engage in culture wars, and finally another Crisis.

Then the pattern repeats—again and again for centuries of recorded history, and likely before.

Strauss and Howe call each phase of the cycle a “turning,” with Founding eras as first turning, Awakening and then Unraveling periods as second and third turnings, and Crisis eras as fourth turnings. Each era, as they documented, typically lasts about 15 – 25 years.

Thus the Civil War crisis was followed by Reconstruction (first turning), the Progressive era (second turning), the Roaring Twenties (third turning), and then the crisis-era fourth turning of the 1929 stock market crash, the descent into the Great Depression, and World War II.

Then (as cycles do), the pattern repeated: first-turning founding in the late 1940s and through the 1950s, second-turning awakening in the 1960s and 1970s, third-turning culture wars of the 1980s and Roaring Nineties, and an impending crisis. The pattern is quite persuasively established, and offers insight into our present circumstances.

The Fifty Steps of Crisis Eras

Strauss and Howe’s book, written before 9/11, was a warning that a new fourth turning was imminent. They predicted that it would start with a major catalyst event that would shock everyone—just like Pearl Harbor, the election of Lincoln, and the Boston Tea Party started the last several fourth turnings in American history.

They went so far as to predict the kind of catalyst events that could start a new crisis era—one of which was a global terrorist group using an airplane as a weapon.

Remember, they wrote this in 1996.

In 2008 I taught a three-day seminar at on the Fifty Steps of Crisis Periods—from the catalyst event (like Pearl Harbor or 9/11) all the way through 15 – 25 years of challenges, and up to the new legal structures which always signal the end of crisis and the start of a new founding period (e.g. the ratification of the U.S. Constitution in 1789, or the establishment of the IMF, World Bank, GATT, and United Nations in 1944-1945).

These broad historical patterns teach us a lot about current political developments and challenges. Those who focus solely on the (admittedly important) issues can tend to miss the forest for the trees.

For example, many of today’s Democrats blame the economic crisis on President Bush’s deficient leadership, while many Republicans point to Clinton Administration pressure on banks and lenders to lower mortgage standards so the lower income buyers could buy homes.

Actually: a larger historical perspective clarifies that a major economic downturn—whichever policies and presidents followed patterns and contributed to the progression—was probably unavoidable, given the societal and historical factors that were in play.

One definition of modernism is the arrogance to believe that we can control everything in our world—that economists, bankers and Presidents can control the economy, fix its problems, and keep everything always growing without waves, cycles or economic recession. We want the economic graphs of history to be up, up, up—never down.

Put simply, this has never happened in history and likely never will.

Indeed, the greatest advances of history come during founding eras; and founding eras only come after crisis periods have reshaped the economic, philosophical and institutional landscape so that the people are prepared to accept and work toward real, positive change.

The delight of summer is sweeter after winter and spring; regions with nothing but cloudless, warm and sunny days are called deserts with good reason.

In that 2008 seminar, I outlined and discussed the fifty predictable steps of crisis eras one-by-one. This dry approach admittedly didn’t drastically alter the way our national leaders responded to events; though, hopefully, it was valuable to those who attended and deeply considered the content.

They were less surprised by the advent of the Great Recession, bailouts, election results and subsequent path pursued by the Obama Administration. Events are closely, almost exactly, following the steps.

I believe we would be following the steps no matter who had won the election. Perhaps we would have varied in the details, but I do not think we would have disrupted the pattern.

Most importantly, those who understand the steps know what to expect in the decade ahead, and how it differs from party-line predictions.

For example, we have arrived at steps 15 – 19:

15. Increased regulation of business (supply your own examples here)

 

16. Many foreign conflicts (again—these are obvious)

 

17. Many government scandals (cynicism is so high on this point that these are hardly news anymore)

 

18. Widely increased stress among citizens across the nation

 

19. An economic downturn which looks bad, but seems to bounce back for a brief time

Steps 25, 26 and 43 are still ahead, along with many others:

25. Major economic downturn (likely to reach depression levels as in the 1780s, 1860s and 1930s)

 

26. A major war begins (replacing smaller conflicts with a war against a truly dangerous enemy like the British in the 1780s, the North and South in the 1860s, and Germany and Japan in the 1940s)

 

43. Leaders establish a new social contract (with a mixture of government and private institutions such as schools, health care, insurance, technology, arts, etc.)

Whatever the specifics, clearly great challenges and opportunities are still ahead in the next fifteen years—give or take. (You can get a pdf download of this article, including a complete list of The Fifty Steps of Crisis Eras, by completing the request form on the right.)

Health Care is the New New Deal

In short, whatever your political views, there is at least one non-partisan way to analyze the Health Care law: The passage of Health Care is the New Deal of our time.

If you tend to celebrate the legacy of the Roosevelt’s New Deal, you are probably glad Health Care passed.

If you dislike the New Deal, you probably object to the Health Care law.

In either case, it gives us a correlative benchmark in the pattern of history, and may indicate our place in the cycles or turnings.

If you are happy for the new law, note that history suggests that major changes are ahead and that the whole system will be revisited and revised in the next fifteen years. And by “the whole system,” I mean The Whole System, not just health care. A major remodeling of the economy, politics, views on morals, and general societal goals takes place by the end of a crisis era.

Now: for those who are frustrated, scared, or even downright furious about the new law, note that major changes are ahead and The Whole System will be revisited and revised in the next fifteen years.

Whatever your feelings about the current political climate and issues, the real battle is ahead. Indeed, as far as the steps of crisis periods go, the passage of the Health Care law signals the beginning, not the end, of the major domestic debates and internal conflicts of our time.

With the assumption that 9/11 was the catalyst event to a present fourth turning, we are only 9 years into a 15 – 25 year period of crisis.

Of course, I do have strong opinions about the Health Care law. But I hope that in the name of such sentiments I do not fail to recognize and illustrate the bigger picture.

From here on, the stakes will continue to rise and the challenges will increase. The battles ahead are much bigger than those we’ve just witnessed.

The patterns of history are belligerent on this point.

Those who care about the future of freedom would do well not to burn bridges by depending too much on the current two-party monopoly. As the challenges increase, the parties will scream louder and louder but the solutions will become less and less party affairs.

There will probably come a point when anti-partisan cooperation will be essential and even critical to the outcomes for our future.

Freedom Shift Needed!

From medical professionals to skilled laborers, much of our society’s most important work is done in shifts; these shifts often also represent a considered, organized division of labor.

In a broader perspective, the cycles of history, or turnings, are also “work shifts,” and a society’s choices and response to their current events and historical trends represent the labor of a generation in building that society’s future. In America today, a Freedom Shift—with a double entendre implied—is needed in this moment of history.

Citizens, families, communities, entrepreneurs, small businesses and leaders will have to solve things more and more in non-governmental ways. We are reaching the point where the government is overwhelming itself, and if major war arrives during the next decade (as it has virtually every other time in recorded history), government will have its hands more than full.

It will be up to us “regular people” to lead out in reforming societal views and ideas and creating and staffing a powerful and desperately needed FreedomShift.

In each major era of history (each first, second, third and fourth turning), there is a general leaning either away from freedom or toward it. And during fourth turnings, the freedomshift or forceshift, whichever wins out, drastically impacts the focus of the next sixty years. Right now we need a FreedomShift to ensure that the 21st century leans toward freedom instead of force. That decision will be made in the next fifteen-or-so years.

It will be made by you and me and others like us. It will be made by the regular people in our nation. Are we ready for such a choice?

If it were made today, I fear many of us would select any government-compelled program that promised to take care of all our needs—without consideration of the cost to freedom.

As our crises deepen and escalate, the world, our society and our minds will change, and we will have the chance to rethink this view.

Leaders are needed—thoughtful, articulate, visionary and prepared—to make sure our generation shows up for its Freedom Shift, and that a FreedomShift occurs.

If we are indeed following the historical pattern, as have thirty generations before us, we are at a banner point in history: We have now adopted our “New Deal.” This means it is time to prepare for leadership in the depression, war and societal reformation ahead in the next fifteen years.

These predictions may sound as extreme right now as predicting a 9/11 catalyst or a major economic recession did in 1999 or 2005. But the pattern predicted both; and depression, pandemic or war, and a significant societal restructure are coming.

What remains to be seen is whether we will turn these events into a Forceshift or a FreedomShift. It is up to us, and our future hangs in the balance.

***********************************

Oliver DeMille is the founder and former president of George Wythe University, a co-founder of the Center for Social Leadership, and a co-creator of TJEd Online.

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah.

Connect With Oliver:

 

Category : Blog &Current Events &Education &Entrepreneurship &Government &Independents &Politics

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