Archiv der Kategorie: English

Today’s system-relevant addictions

Shortly after the crash of the Wall Street in New York (1929) Bertolt Brecht found the right words in the Three penny Opera: “What is robbing a bank compared to founding one?” Thus, he demonstrated visionary instinct. Because of the government debt, every Germans have a calculated debt with the financial system of more than 29,000 €; every US citizen even more than $ 57,000 – inclusive all babies and retirees. At the same time, some people call the classical financial institutes as system-relevant and support therefore the banks. As a result, their losses are continuously socialized and profits privatized. With it the moment is reached to take a look at today’s grown system-relevant addictions.

Just as a drug dealer makes the junkie slowly addicted to the drug, the banks have built up over a long time the following system. The result is the same as in a casino – the bank always wins.

  • Pay little interest and take lots of interest
    Already the easy-to-understand idea of charging interest rates for lending money required early on the regulation of the money business in order to prevent usury – sometimes better, sometimes worse. At the same time the banks took over the service of securely storing the money that one did not need, paid for it a certain interest rate and lent the money for a higher interest rate to borrowers, who needed money. The differences created the profits of the bank. The management of this exchange is systemically relevant – the neutral broker creates more occasions.
  • Encourage consumption on tick
    Loans served to finance kingdoms, states, and eventually businesses. With the emergence of the consumer society, there discovered also the consumer loans: for housebuilding, car purchasing, and holiday trips and meanwhile for all areas of consumption. By enabling such loans, the banks encouraged the economy that in turn created jobs. This offer of consumer loans has system relevancy- at least in a world of consumption.
  • Fees on everything (account, credit cards, balance, transactions)
    In addition to the interest rates, the banks eventually discovered the approach of getting paid for any service. An overseas transfer has always cost a lot (additionally to the rate of the currency exchange). In the meantime, the banks start charging all areas: for all kinds of money cards as well as account, transfer fees inclusively for personal transfers at a bank counter. Particularly clever is the idea to offer customers a membership card that provides some of the old services for free – of course with some pre-requisites beneficial for the bank. Since regular payments (like the rent, the telephone bill, and loans) are transacted via the own bank account, the bank strengthens as a middleman its system relevancy.
  • Reduce and possibly eliminate cash
    Since banks offer less and less “physical” services, it becomes important to close the back door of an account, the cash. For this purpose it will be abolished successively. Without cash, the values only exist in the banks‘ data storages. Thus, after the abandonment of the gold standard, we reach the zenith of the virtualization of the financial values. Our wealth is now subject to fluctuating courses, which are constantly changing. So, if the cash itself has no more material value, you can also get rid of it. As soon as only the data storages of the banks represent our monetary possessions, the last person should be clear about the system relevancy of banks.
  • What is still to come?
    In the future, ALL money actions will be chargeable. The highest fees will be asked by those banks that can not change themselves as fast as the other players. The Internet enables new business models – from Linden Dollars, Bitcoins to microfinancing, crowdfunding or private loans. These transformations mean the end for classical financial institutes, which believe that they can finance themselves through excessive fees and do not adapt to the new circumstances. The last convulsions will demand a lot of the system. This means for the customers to find a way out of the systematically defined dependency from the banks – the account, the saving interests, the standing orders, the transfers, the money investments, etc. The insistence on the apparent system relevancy will shift the system – away from the classical financial institutions.

Bottom line: For millennia’s, the economy worked without system-relevant banks. Today, the banks are in a deadlock. The current efforts to find new income sources will exploit the meanwhile established dependencies, until the customers get broken. The credit system, the consumption, the services, the cash, and all that is called system-relevant, will be replaced by new providers with new business models, like microfinancing, crowdfunding or private loans. The basis of the economy, the money that is only based on faith, will be replaced by new means of payment – no matter how, main thing is getting out of the system-relevant addictions of today.

From nothing simply nothing comes

Common sense tells us that anything adapts to what already is there. Spheres, not cubes, come out of a sphere. In closed systems, it is unlikely that something new will emerge on its own. Except: energy is added from outside. The same is the case in human communities – working groups, departments, and firms. If something has to be changed, it needs a push to get momentum. From nothing simply nothing comes.

The following aspects outline some stimuli that the leaders can give in terms of energy supply.

  • Adaptability
    The persistence in the existing of individual people needs a framework that provides the necessary space for the new. In an appropriate atmosphere that gives employees the chance to make things flexibly on their own, to cooperate across borders and to apply new ideas without any effort changes happen. The customer’s needs are adequately addressed that way. If then the willingness to try new things is encouraged by stress-free, fault-tolerant attitudes and openness, collaborative learning takes place. Thus, all are able to adapt.
  • Participation
    Once you understand that the group creates many more opportunities than individual geniuses, you have to take care to put the team in the position to make decisions at the point of action. This requires that the relevant information is available and that, at the same time, all know that they can and are allowed to contribute positively as well as to plan jointly. This puts the team at the center – with all its objectives, distributed balance of power and group processes. The development of appropriate skills is crucial for the employees, as well as for the leaders, who must give up part of their ego. The contributions through participation of all members cumulate to a larger sum than the sum of individual results.
  • Consistency
    The interaction of many interests leads naturally to a wide range of solutions, which even contradict each other in the worst case. For this reason, conditions have to be created that reduce the divergence of the parties to a healthy degree. The well-known fish that stinks from the head has an important exemplary function. Above all, the desired manners have to be put on paper. This applies to the culture with its convictions, values ​​and the collaboration styles, as well as for the established ways of making decisions and agreeing. To ensure that the described behavior is also put into practice, the executives have the responsibility to take ownership of their expectations and to continuously act accordingly. In addition, they affect personally the employees by consistently expressing the common perspective and by coordinating the involved people accordingly. The consistency of statements, behavior and decisions prevent resistance.
  • Mission
    Eventually the clarification of the mission is the formal element in order to be able to cross the door to the new. The formulated snapshot of the future that describes the targeted final stations, shows the raison d’être of the company. Everyone will then develop its idea of the way to the destination. In the interest of joint collaboration, concrete milestones define reference points, which will again and again realign the forces to the common goal. The more the vision, the mission and the strategy are sharpened for the target group, the clearer they lead the employees. The formulated and accessible mission reduces the interpretation space to a minimum.

Bottom line: Even if the world seems to alter on one way or the other, change that is to be done more quickly or more fundamentally, needs efforts in advance. All those affected people must be able and be permitted to adapt themselves. Platforms for participation have to be created. All aspects of the business must be harmonized in a way that uncertainties concerning the right approach are avoided. And above all, a clear direction must be given. However, this has changed nothing yet. But without these aspects changes are almost impossible. Responsible for creating these basic conditions, which are an effort in advance, is the leadership team. Thereafter the actual change follows. From nothing simply nothing comes.