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Leadership

The Deeper Importance of the 2010 Election

October 7th, 2010 // 4:00 am @

Blame is easier than leadership.

It’s been long enough since the announcement of the “Great Recession” that a shelf of books are now out—each outlining the “real” causes of the recession and its unsettling impact on the American psyche and economy.

Unfortunately, most of these books are essays on blame.

The two major political parties predictably blame each other for America’s economic woes.

Democrats say that Republicans caused the recession, while Republicans say that Democratic policies (from the stimulus to health care and beyond) have made the recession worse, increased unemployment, and slowed a recovery.

Since most recovery numbers are based on government spending rather than private sector growth, many on the Right dispute that the publicized recovery is real.

To a large extent, the media has joined with one side or the other in this debate.

Weekly talk shows pit conservatives against liberals, volleying the two partisan views of past and present economic challenges. Magazines and national newspapers echo this argument.

A Dearth of Solution Thinking

Usually books take a deeper look at the issues than other media, understandably using the longer format to give readers more depth and analysis on whatever topics they address.

Likewise, the arc of economic-political-societal commentary in books usually includes a significant section outlining important, needed and under-utilized solutions.

But right now such solution-oriented commentaries are noticeably few—and strikingly similar. Many repeat partisan views in chapters so short they would make newspaper editors proud.

There are three main themes in this genre:

  1. Republicans Blew It and Big Banks/Corporations are Greedy and Evil,
  2. Democrats are Blowing It and turning into Scheming Socialists
  3. Big Institutions in Washington, Wall Street, Main Street, Hollywood, Silicon Valley and anywhere else where Big Institutions lurk are Ruining America

A fourth (though minor) theme is that the recession was a global reality tied to the increasingly interconnected world economy and that American citizens and leaders had little power in the whole thing.

In all four of these themes the focus is blame, and therefore the solution is to “throw the bums out.”

The Right wants to “take back” America in the 2010 congressional elections, while the Left wants to hold their own in the elections and keep offering regulatory solutions.

Activists are increasingly determined to push both sides further to the extremes.

In short: where blame is the main point, solutions are seemingly simple.

The Problem

Unfortunately, such “solutions” are unlikely to accomplish very much. One side will win, and the blame game will increase right along with the problems.

The worst-case scenario for the 2010 elections is lots of press, lots of emotions, and little change.

I’m not saying that the elections don’t matter; they do. Nor am I suggesting that this debate isn’t important. It is.

My point is simply that there is more to it than many politicians and journalists are admitting.

Unless we get past the blame game and engage a true national discussion about solutions, we are unlikely to see things really improve—no matter who is in office.

One book, The Great Reset by Richard Florida, develops the ideas that a crisis is a terrible thing to waste, and another, The Battle by Arthur Brooks, takes readers inside the Obama West Wing and the inner workings of the President’s choices in 2009-2010.

Both are worth reading closely—regardless of your political views. Another recent book, Capitalism 4.0 by Anatole Kaletsky, gets serious about suggesting some solutions.

None of these books are free from the blame game, and Kaletsky’s attack on the Bush Administration is one of the worst blame-focused rants in all the books now coming out on the topic.

But for readers who can look past his angry tirades, Kaletsky’s work is worth studying because at least part of his analysis gets past blame and helps us understand the recession in its broad historical and international context.

The History of Capitalism

In contrast with the four popularized themes listed above, Kaletsky suggests that the global recession grew out of the historical trends of our time.

He argues that capitalism will continue to grow because of its proven ability to adapt. Such adaptation follows a pattern:

  1. A crisis exposes the weaknesses in the latest adaptation of capitalism
  2. Society and government respond to the crisis and alter the details of how capitalism is applied
  3. The changes evolve until they succeed in re-establishing prosperity and growth
  4. The new adaptation allows economies to flourish
  5. Weaknesses in the new adaptation eventually cause another crises and the pattern repeats

Over time, according to Kaletsky, this has created at least four adaptations of capitalism.

Capitalism 1.0 grew out of the crises of the Napoleonic era and was characterized by the Laissez-Faire type of capitalism. This was defined by the separation of economics and governments, and its strengths allowed great growth of wealth and powerful economies.

Eventually the weaknesses of 1.0 led to the Great Depression in America and Western Europe.

The response was what Kaletsky calls Capitalism 2.0, an era of major government involvement in the economy—not full socialistic control of the economy, but much higher levels of regulation and government intervention.

This started in the New Deal and grew through the 1940s-1970s.

The eventual negative result was the inflation and stagnancy of the late 1970s, which was followed by a transformation to Reaganomics: a focus on big-government spending for international projects combined with lower taxes on the wealthy and big corporations.

The idea behind Capitalism 3.0 was that if those with money were incentivized to spend more, this would create more jobs and increase business and personal opportunity.

In each of these periods, the economy responded to the positive features of the given adaptation of capitalism. On the downside, the negatives of each adaptation led to the next inevitable crisis.

The Great Recession of 2008 and 2009 was caused not mainly by greedy bankers or weak housing loans, according to Kaletsky, but rather by two successes of Capitalism 3.0:

  1. the spread of capitalism and therefore market interconnections globally
  2. bank and government success in controlling inflation worldwide

These strengths led to weaknesses: when some places saw economic downturn, it quickly spread to the other areas around the world, and governments which allowed their big banks to fail pulled the brunt of world capital struggles down on top of themselves.

The Emergence of a New Economy

The result, just now emerging, is Kaletsky’s Capitalism 4.0. In this adaptation of capitalism, we will likely witness a new relationship between markets, economies, and governments.

Where 1.0 showed the pros and cons of nearly total government isolation from the economy, 2.0 exposed the strengths and weaknesses of major government intervention in the economy.

In 3.0 we started mixing market and government roles by having government intervene in what it considered “vital” sectors (like military and transportation), while mostly staying out of the rest of the economy.

According to Kaletsky, 4.0 will follow a different mixing guideline by increasing the government intervention in some areas and lessening its role in others.

The specifics will be determined, in this scenario, by which things respond better to free markets versus those which respond more positively to significant government involvement.

For example, Kalentsky thinks government must get deeper into financial regulations and management but leave education and health care more to the free market.

Clearly the Obama Administration is not following Kalentsky’s suggestions, no matter how much he agrees with them in blaming Republicans for our problems.

But any leader—in business or government—should consider Kalentsky’s analysis. I disagreed (and also agreed) with a number of things in his book, but his suggestions exceed the tired, old two-party talking points and deserve consideration.

So, The Election . . .

We clearly live in a time where both government and business involvement and changes are needed to re-establish a truly flourishing free-market approach to American prosperity.

Neither extreme—a total government pullout from the economy nor increasingly socialistic levels of regulation and micromanagement of nearly every sector of our economy—is desirable.

We need the government to take wise and effective action to boost the economy—at times increasing regulations that work and also consistently reducing and repealing the numerous regulations and government interventions that are slowing and hurting the economy.

The regulatory load on investors and entrepreneurs is especially bad for economic growth.

Government simply must find ways to do less, or the economy will continue to sputter and struggle.

Yet there are certain things that government can and should do best—like keep the free-market playing field even and open for all potential investors and entrepreneurs.

Perhaps the proper role of academics, journalists and authors is to analyze, to suggest—and even to blame. But as long Washington is caught in the blame game, far too little effort is given to leadership.

Our elected officials need to stop pointing fingers and give more attention to solving our economic challenges.

The first step is to free up small business entrepreneurs and investors who provide most of the jobs and growth in the economy.

A second step is to make investment in American businesses once again highly attractive to world investors.

Both of these are roles for those we elect, and if it is “the economy, stupid,” these are the real issues of the 2010 election.

Whoever wins at the voting booths this coming November, and whatever the experts say that night as the networks and cable channels cover the election like a major sports tournament, the real future of America depends on whether or not the people select leaders who will free up the economy.

A free economy, within the bounds of wise and effective laws, is a prosperous economy. An increasingly regulated economy is an economy headed for less prosperity and decreased opportunity.

Whatever your politics, less prosperity and decreased opportunity are simply not acceptable goals for the upcoming elections.

Yet unless we accomplish more than simply voting, these are the results we will probably see in the years after the election.

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

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 : Current Events &Economics &Featured &Government &Leadership &Politics

The Entrepreneurial Foundations of Free Society

September 27th, 2010 // 4:00 am @

Click Here to Download a Printable Version of This Article

Howard Gardner’s research suggests that there are fundamentally seven basic intelligences: literary, mathematical, artistic, musical, spatial, interpersonal and intrapersonal.

Modern education tends to emphasize basic knowledge in three of these (literary, mathematical and interpersonal) fields followed by career specialization in one.

During the American founding era that produced a generation of citizen-farmers and citizen-entrepreneurs who established the freest society in history, a different sort of education-career path dominated.

Today’s professionals and experts tend to be trained in problem solving under structured guidelines, whereas successful entrepreneurs seldom have the luxury of easily knowing what the problems are.

They have to figure out what the real issues are and define the problems, and only then find ways to solve problems and overcome roadblocks.

This requires high levels of initiative and resiliency, independent and analytical thinking, ingenuity and creative thinking, tenacity and self-analysis.

These entrepreneurial skills and talents are precisely those needed to establish and maintain freedom.

Intelligences

To prepare youth for success in entrepreneurial (and free) cultures, education tends to emphasize originality, creativity, breadth, depth and leadership skills rather than rote memorization, standardized curricula or socialization.

The latter skill set is vital in societies with strong upper classes employing the lower castes, but the former is essential to free democratic nations.

Where class societies tend to educate for general knowledge in literary, mathematical and interpersonal skills, entrepreneurial nations educate for depth in literary, mathematical, interpersonal, artistic, musical, spatial and intrapersonal (self-understanding, self-discipline, and self-starting) excellence.

Then entrepreneurial societies go a step further by educating to the hyphens.

This means using personalized and mentored learning in the greatest classics and works of mankind along with current original sources to establish skills and train experts in multi-intelligence categories.

Examples include many who used two or more intelligences to significantly impact societies, cultures, paradigms, governments, policies and worldviews:

  • Interpersonal-musicians like Mozart and John Lennon
  • Literary-artists such as Goya, Cecil B. DeMille, and M. Night Shyamalan
  • Interpersonal-literati like Shakespeare, Jane Austen, and John Steinbeck
  • Spatial-artistry like gladiators, NASCAR, and the Louvre
  • Mathematical-artists like Michelangelo and Picasso
  • Literary-mathematicians like Newton, Einstein, and Hawking
  • Literary-intrapersonalists such as Tolstoy, Harriet Beecher Stowe, William Goulding and Ayn Rand
  • Intrapersonal-mathematical thinkers like Montesquieu, Hume, Madison, Mises, Keynes, C.S. Lewis, and Buckminster Fuller

To make sense of this, consider a society where the youth become proficient in reading biographies of great leaders from Socrates to Washington and Andrew Carnegie to Ray Kroc and of effectively applying the lessons learned to their own lives.

Or where every young person knows both the formulas in calculus and also how to build and implement a business plan, including detailed financials, to turn “thin air” into great institutions of profit and non-profit value in society.

Skills

The lessons of such expertise naturally impact the prosperity and freedom of a society.

And such lessons come from depth in many of the intelligences instead of general education in only three and a specialty in just one.

Such widespread competency in reading, writing, persuading, leading, calculating, comparing, analyzing, thinking, creating, beautifying, composing, building, interacting, initiating, overcoming, enduring, changing, improving, motivating, self-starting, self-disciplining, self-guiding, teamwork, leading and serving are what the American founders idealized as quality education.

These are the necessary skills of successful entrepreneurship and also of societal freedom.

This level of education and expertise is developed by what Ken Wilber calls the Big Three of Buddhism: Buddha, Sangha and Dharma.

“Buddha” in this sense means combining one’s purpose or mission in life with developing oneself into a true and great servant of society.

The Greeks called this Fate and the American founders called it Providence.

By seeking to be guided by higher powers and higher purposes, a person becomes her best and as such greatly improves society through her efforts and contributions.

Buddha is credited with saying that “Our purpose in life is to find our purpose in life and then give our whole heart and soul to it.”

Sangha is one’s community, gathering, group or team. Working together with the right people, “we” do more than “I” ever could.

Good teams are diverse, individualistic, cooperative and united toward the same goals. They achieve most when they operate at peak levels.

Dharma is the truth, the true, the ideal. Dharma helps us know why we are here, what we are about, and therefore who we really are.

But Dharma is not about “I” or “We.” Rather it is about what we accomplish: the goal, the objective, the positive change we bring to the world through our best efforts and service.

In Christianity this is the Christian walk, the anointed purpose, the path.

Christianity’s equivalent of Sangha is the Church, and “Buddha” is the submission to Christ and His will.

Plato and secularists call these big three the good, the beautiful and the true, and psychology calls them the “I, We and It”—Buddha, Sangha and Dharma respectively.

In American politics these are citizen, the Constitution and freedom.

The lesson for education is that great learning is:

  1. Individualized
  2. Best achieved in interactive groups with mentors, peers, discussions, feedback and group projects
  3. Mission-driven

Again, the very skills and abilities created by this model are exactly those most needed in free society. Without them, entrepreneurial prosperity and political freedom decline.

Personality

Add personality types to the intelligences and skills, and our realization of the need for widespread entrepreneurial talent and experience intensifies.

Where the Greeks and moderns tend to break human personality into four dominant groups, symbolized by animals or colors or other models, the Old Testament emphasized twelve types and the New Testament adopted thirteen.

One of the most unique and profound systems of personality typing is the Enneagram.

The Enneagram was created by Muslims from the Sufi tradition, and is now popular in many multi-level and network marking circles.

Its nine types of people are distinct, deep and tend to resonate with nearly all readers. The nine types are essentially as follows:

  1. Reformer: principled, purposeful, self-controlled and perfectionistic
  2. Helper: demonstrative, generous, people-pleasing, and possessive
  3. Achiever: adaptive, excelling, driven, and image-conscious
  4. Individualist: expressive, dramatic, self-absorbed, and temperamental
  5. Investigator: perceptive, innovative, secretive, and isolated
  6. Loyalist: engaging, responsible, anxious, and suspicious
  7. Enthusiast: spontaneous, versatile, distractible, and scattered
  8. Challenger: self-confident, decisive, willful, and confrontational
  9. Peacemaker: receptive, reassuring, agreeable, and complacent

Of course, there is a lot more depth to this in the many volumes which describe it.

Interestingly, in traditional business the typical use of the Enneagram and other personality types like the Myers-Briggs is to help managers interact more effectively with their employees — and vice versa.

Teachers often use it to better understand and work with their students.

In entrepreneurial environments, however, the focus is quite different.

This can be understood in the following three steps:

  1. Understand your own top strengths so you can give them a lot more energy and greatly improve them.
  2. Identify those types on which you score at the mid levels, so you can develop them into strengths.
  3. Clarify where you are weak and team up with people who are extremely strong in these areas.

This flies directly in the face of much educational/career theory from the past half century, where the system has generally been satisfied with grade-level performance in a given subject, and focused special attention on the students’ weaknesses.

By contrast, teachers governed by entrepreneurial values in the classroom would have children spend much more time on their strengths than their weaknesses.

Those scoring high in math, for example, would take a lot more math than other students and in fact study math at the highest levels in special courses designed just for such students. The same would occur in all fields.

Teachers would also divide students learning to read, for example, not by levels but into teams where each team would include students from low, medium and high reading levels.

Corporate architecture would combine mail carriers, board members and everyone in between in adjacent offices and co-mingle everyone on all floors.

The Third-Turning value of efficiency would give way to the Fourth-Turning focus on growth as a community through individual excellence and synergistic cooperation.

This, by the way, is how nearly all entrepreneurial ventures and small businesses actually do things.

The consequences in society and governance are huge. Indeed, this is exactly the model of citizens and voters that America’s founders had in mind—all types of people mingled together, each equal as a citizen and before the law.

Freedom is the natural result.

And on the skills of applying such a model, small business leaders and entrepreneurs are years ahead of the rest of society.

The point is not, as most entrepreneurs will tell you, to turn things over to entrepreneurs or any other group of citizens. Such a plan would only create another style of class system.

The real solution is to have a lot more entrepreneurs in society. In the long term, this is achieved by giving America’s youth a true Leadership Education and naturally letting our society benefit as more entrepreneurs arise.

A quicker solution would be set in motion by simply de-regulating small businesses.

IQ vs. EQ

For a long time America used IQ as the measure of intelligence as well as a predictor of academic and career success.

IQ tests measured literary, mathematical and spatial intelligence, but little else. They basically ignored the other intelligences.

Daniel Goleman’s best-seller, Emotional Intelligence, showed how managers could become better leaders by also developing interpersonal, intrapersonal, and more artistic skills. He argued that EQ (emotional intelligence) is just as important as IQ.

Pop culture tends to summarize these two as right brain (EQ) and left brain (IQ).

In this view, left-brain experts, professionals and executives have significantly different skill sets than right-brain artists, creative types and motivators.

It is all about the intellect versus the emotions, in society and in each of our personal lives.

The IQ monopoly resulted in many business authors writing that being too intelligent is not good for business, since many with a very high IQ were hired by mid-IQ bosses.

EQ shed some light on the situation, showing that successful entrepreneurship and innovation tend to blossom where analytical and creative skills are balanced.

High IQ with significantly lower EQ, or vice versa, tend a person toward specialized employment. Where right and left brain are generally equal, be it high or middle or even relatively low, initiative, risk, tenacity and leadership often flourish.

In short, many jobs require certain levels of IQ or EQ, but successful entrepreneurs either naturally have a balance of both or must develop one.

The old view that IQ can’t be increased is being replaced as we see many people who clearly break old barriers and disprove the experts.

Entrepreneurial success usually requires deep understanding of and skills in many of the basic intelligences.

General education courses in three of them and specialization in only one simply doesn’t work in the challenging real world of entrepreneurial competition.

Nor, for that matter, is it adequate to maintain freedom.

Eco vs. Ego

For years American politics has been dominated by two parties, one emphasizing success and the other nurture.

This battle of Ego versus Eco still drives most national debates.

Where one party is driven toward wealth, fame and progress, the other prefers to promote caring, service and acceptance.

One is self-centered and the other is inclusive. One sees private life as the highest good and the other wants government to solve all problems in society.

One prioritizes national security above all else and the other idealizes social justice.

More Americans now consider themselves independents, rather than loyal to either major political party, in part because we have reached a point where the majority of the nation’s citizens consider both Ego and Eco to be vital.

This has been the norm for entrepreneurs for many years. Indeed, entrepreneurs who try to put one above the other seldom succeed for long.

Small and entrepreneurial business leaders learn that both caring and drive are necessary.

The same is true of citizens who want to remain free. Indeed, the most important entrepreneurial skills and lessons are those most needed to promote free society.

Freedom is best supported by excellence and compassion, self-improvement and service, building wealth and taking care of other people and the earth.

Freedom requires a balance of analysis and creativity, intellect and emotion, wisdom and intuition, reflection and action.

Free societies are intelligent societies, because the broad citizenry must understand and protect its freedoms or it will lose them.

But a society cannot remain free by following a few geniuses at the top — this always destroys liberty.

The most prosperous and free civilizations are those where the majority of people develop and share their best personal genius.

Everyone has genius inside, and it is the purpose of Leadership Education to reveal it and help people develop it.

Career is the place where genius is then shared to benefit and improve the world. Finally, it is the purpose of free society to allow all to fully achieve and share their genius.

Entrepreneurial activity naturally seeks these peaks and balances. This isn’t new; it was the reality during the American founding and has been ever since.

The future will be no different. We all need to learn and apply this truism: However small business goes, so goes the nation.

Click Here to Download a Printable Version of This Article

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

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 : Arts &Education &Entrepreneurship &Leadership &Producers

A Review of Launching a Leadership Revolution by Chris Brady & Orrin Woodward

September 15th, 2010 // 4:00 am @

launchingaleadershiprevolutioncoverAs a fan of leadership books, I try to read everything that comes out in this field.

Unfortunately, reading hundreds of books on the same topic means there is seldom something really new—fresh, exciting, revolutionary that uplifts the entire genre.

The last such surprise for me came several years ago in the writings of Steve Farber. But now, finally, comes another great addition to the leadership genre: Launching a Leadership Revolution by Chris Brady and Orrin Woodward.

Their subtitle, “Mastering the Five Levels of Influence,” sounds like typical management book fare, but it isn’t.

Each level is vital, well-taught and interesting, and together they form a truly revolutionary model for leadership.

This is not exaggeration—this book is excellent! I rank it right along with the best of Drucker, Bennis, Blanchard, Gerber, Collins, Deming, and Farber. It is destined to be a classic.

Brady and Woodward teach that everyone will be called upon for leadership at some point in their life.

They then turn leadership upon its head, noting that while many people seek leadership for the perceived benefits of power, control, or perks, the true life of a leader is actually built upon

“…giving power (empowering)…helping others fix problems…and serving others. Leaders lead for the joy of creating something bigger than themselves.”

This follows Greenleaf’s tradition of servant leadership, but with a twist.

Launching a Leadership Revolution shines because it gets into the specific work of leadership. It outlines many pages of work leaders must do, and explains which work to focus on most.

But the book seldom uses the word “work”, instead preferring the active “working.” Just the list of “working” items for leaders is worth more than the price of the book.

Maybe the best thing about this book is the authors’ ability to take traditional, classic leadership basics and give them new, profound definitions.

For example, the definition of learn goes from the old “a leader is always learning” to “a leader must be able to learn from anyone.”

Imagine the leadership revolution that would occur if top executives and government officials really did seek to learn from everyone!

Another example: The meaning of perform is transformed from “please your boss” or “improve the bottom line” to “persevere through failure to find success.”

This is the best definition of leadership performance I’ve ever read in print. And the book teaches the reader how to do it.

Likewise, the advice to develop others as leaders moves beyond all the clichés to become “learn to trust your people.” It includes fitting them to be truly trustworthy.

That’s what leadership should be– but seldom is even considered.

There are many other examples. This book is a revolution that builds on the best ideas and thinkers of the past by applying them in fresh new ways applicable to the information age.

We learn from case studies such as George Washington, Winston Churchill, Benjamin Franklin and many others right along with contemporary needs and challenges.

Above all, the book places leadership success squarely on the success of mentoring and gives excellent advice to mentors on how to help people bring out the leadership inside them.

Everyone serious about Leadership Education will want to read this book, and apply the principles to our learning and mentoring.

In truth, great leadership is simply using great influence for great things, and this book can help each of us do this.

In these times of government bailouts and “fixes,” it is important to remember that the American Dream never was a government program. The American Dream was a leadership revolution, where regular people chose leadership and became leaders.

This revolution is still needed today, perhaps more than ever before in history.

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

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 : Book Reviews &Education &Leadership &Mission

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.

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

Reconnecting with True & Effective Education

September 9th, 2010 // 11:01 am @

In recent years we have seen a domino effect of compounding crises, one following another.

Behind each crisis is a history — a series of causal events and circumstances that made the crisis inevitable.

Our failure to recognize the common root cause makes it unlikely that effective solutions will ever be put in place to free us from this cycle.

While many correctly note that education is the key, this is usually only an introduction to an even more troubling crisis.

Violence, addiction, cultural decay, the degeneration of the family unit, deterioration of an aging infrastructure of buildings and resources, high rate of dropout of students as well as teachers, political manipulation of curriculum and personnel, and mediocre and falling test scores are all issues of extreme importance.

But after all of the other criticisms that can be made of our educational system, the final indictment is that too many of our children simply aren’t learning.

Because of this education disaster the twenty-first century has not fulfilled its promise as an Information Age, a Post-industrial Age, or an American Age.

It has instead been an Era of Crisis.

To break free from this long-term pattern of crisis we must first fix education, and to fix education we must address the real problem.

The deep reality of this failure is that education now too seldom involves the right kind of connection.

Consider the deeply moving and transformational experiences you had with teachers and educators in your life and I think you will agree that connection was a defining characteristic in virtually every example. Somehow that great teacher or mentor found a connection with you, and it helped you when you needed it.

Now add to your mental list the best characteristics of the greatest teachers in history, from Socrates to Mother Teresa. Now include those of the greatest mentors in literature and books, like Jo in Little Men, or the priest in Romeo and Juliet.

Add to the list the best from great teachers in contemporary movies, like Dead Poet’s Society and Freedom Writers.

Within this list we find a prescription for how to truly connect with, teach, and mentor young people.

This list is what great education is. This list is what Leadership Education is all about.

Our purpose is to put great mentors in the classroom with students and then watch as greatness emerges. And it does — because when teachers know that their entire purpose is to be the things on that list to the students in their care, miracles occur.

athomasjeffersoneducation-150x220-customAs I wrote in my book A Thomas Jefferson Education, academia today struggles because both teachers and students have lost the vision of their role in the educational process.

Every conceivable “fix” has been tried or proposed, while neglecting the obvious: It is the student’s job to supply the desire and effort to get an education for himself.

To this end, it is the teacher’s role to inspire — to do all those things on our mental list that lead to connection.

When teachers do those things, students study and learn and work hard; they actually get a great education and prepare for a great life.

Imagine a world where classrooms are filled with teachers who believe their students have genius within them and that it is their job to help each student find it and develop it.

I hope that in the decade ahead millions will read the book A Thomas Jefferson Education and help make this vision a reality in their homes and schools.

We must all spread the message that we can’t accept mediocre education anymore without dooming our nation’s freedom and prosperity, and that great education comes only when students choose to do the hard work of studying.

Students do this when they are exposed to transformational teaching and personalized mentoring.

So, what can you do? Be a mentor. Get fifty copies of A Thomas Jefferson Education and give them to people you know; tell them of your conviction that the future of America depends on great education as outlined in this book.

Start telling the story of the teacher or mentor who most changed your life, and ask others how teachers changed theirs.

We need to start talking about our great teachers, to make this discussion an American pastime. Great education means the difference, literally, between a future America of free enterprise and opportunity or something much less desirable.

In the next decade, we are choosing what kind of future we will pass on to our children and grandchildren.

And the choice will happen in our classrooms.

*This post  was adapted from prepared remarks that were delivered as a speech by Shanon Brooks on behalf of Oliver DeMille at the George Wythe University 2009 Philanthropic Gala at the Utah State Capitol.

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

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 &Leadership &Statesmanship

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