OF THE MOST IMPORTANT NEW DISCUSSIONS IN ECONOMICS. I gave a talk to Ascentium s

http://www.overcomingbias.com/2015/04/firms-are-56-dark-matter.htmlONE OF THE MOST IMPORTANT NEW DISCUSSIONS IN ECONOMICS.

I gave a talk to Ascentium staff about this trend and how it would effect marketing and advertising in 2009. But it was too far over the horizon for the audience.

What does this mean for policy. What does it mean for accounting and reporting. What does it mean for brands?

I was more interested in what it meant for executives and finance and reporting than brands.

And I think brand people work in much shorter time horizons. So there isn’t advantage to being an early mover as much as moving once the old habits stop working.

But for the c-level, we work on long horizons. And we must be aware that the government trails us.

So developing internal management, information and accounting systems that adhere to policy is a death trap.

Instead we must separate external financial accounting from management accounting. And we should account for and measure our “dark matter”.

That returns us to measuring brand value.

As these numbers indicate, that is your MOST IMPORTANT ASSET.

Culture is you next most important asset.

Capital will remain free through 2025 at the earliest and under deflationary pressure.

So IP, culture that attracts talent, and brand loyalty are your only material assets.

Let the government tax you as if we still lived in the age of telegraph and sail.

But measure culture, build talent, and measure customer loyalty. And brand value.

Business norms like cultural norms and policy adapt more slowly than circumstances change.

Overcoming Bias : Firms Now 5/6 Dark Matter!