If the Yang is the material part of the economy and business, the yin is the immaterial part of the value of the business. So-called “soft skills” and “goodwill”. Well, these so-called “soft”-issues are paid with hard currency. And the amount paid for is – even if bankers hate this – depending mostly on emotionals. Yes, extrapolated EBIT or historical cash flows are not a guarantee any more. Especially with plans on 6 or 12 months. The next 5 years will contain the most drastical changes ever in history of economy.
Take a look at stocks… their yoyo’s reacting on whatever is going on in the world. Even the best economists are not able to predict anything rationally.
So this is the proof that yin-issues are very important in today’s management. Because they provoke hard yang-results and profitability.
Hard questions need hard answers:
How much can a scandal cost if not dealt with responsibly?
How much can ego-behaviour cost in unefficiency of the teams?
How much does it cost to be too late with innovations in front of competition?
So, the message is:
qualifying and qualifying them,
understanding the connexion between the balance sheet with intangibles,
imagining ways to transform efficiently intangible liabilities into value,
imagining ways to transform efficiently intangible value into business,
re-invent business models including this yin-dimension, human added value.
Sustainable development of people (starting with yourself), is the next hype. Historical role models now start to emerge as the next string players. Colruyt for example, as all the other retailers in Belgium were losing value, was going up every day throughout crisis … Facebook, Google, Apple, and numerous humble companies are now experimenting new ways of empowering people, and are rizing out of the grey mass of corporations which compete on price.
Be part of the next fit generation surfing on tsunami’s !
Assess your intangible assets with Triple Accounting and create tangible resilient results for everybody.
Michel de Kemmeter