MI Research Seeks a Cure for Big ‘C’ Capitalism

The Maturity Institute models itself on the medical profession and aims to develop a whole generation of organizational health practitioners. Everything we aim to do is focused on the most positive outcome possible – Total Stakeholder Value (TSV). We view leadership as having a social responsibility of the highest order and management as a vocation equivalent to the very best doctors. We do not pretend that we have all the answers but we do measure TSV through a powerful and insightful diagnostic, our OM30 instrument by:

  1. Rating organizations against our standard for societal purpose: the production of the best quality goods or services at the lowest possible cost (avoiding any undue external harm e.g. environmental impact)
  1. Assessing the management motivation and capability for maximum value creation through four variables – Output, Cost, Revenue and Quality, with a specific focus on human systems
  1. Measuring the extent to which organizations create value for all and manage risk through all connected stakeholders (e.g. staff, suppliers, customers, regulators)

Our mission demands the very best in organizational analysis and, in the few years since we have been highly active, we have produced some ground-breaking research. We are now making that research freely available to provide the greatest and widest benefit possible. Please contact us if you would like to receive a free copy of any of the reports mentioned below.

As with all MI research, we are seeking exemplar organizations to lead capitalism in the right direction. Our original exemplar, Toyota, has already led the world for many years with the most mature and enlightened form of commercial enterprise.

Our very first research report, into the pharmaceutical sector, was commissioned in 2015 by Trillium Asset Management and became a forerunner of what is now OMINDEX. In the small group of companies we analysed, none stood out in terms of heightened maturity. One, Gilead, even earned itself the dubious ‘honour’ of being awarded MI’s very first CNR (‘could not rate’) because it provided so little public information. Since then, we have undertaken a more detailed analysis of Novo Nordisk; a company with a long history that started out with the most laudable of aims, to provide the best treatment for diabetes. Yet it has succumbed to the ‘Big C’ and lost its way in terms of its own TSV. We now use this case study as a training exercise for new MI members who wish to develop as analysts.

Earlier this year we were able, with the kind financial support of Hermes Investment Management, to complete a much bigger piece of research on Banking Governance and Culture. While our focus was on 20 international banks (who had been fined the most for misconduct) we discovered, along the way, our first banking exemplar in Handelsbanken. Our research tended to confirm though that, despite talk of culture change, there was little evidence of any significant progress across the sector.

So we followed it up very recently with  research into another main element in the global finance system; the Big 4 accounting and auditing firms (Deloitte, EY, KPMG, PwC). Our preliminary report attracted a great deal of attention within the accounting profession at large; so we are now poised to rate other, top 10, firms in our continuing search for signs of exemplary behaviour.

MI has adopted a protocol for engaging organizations in the process of assessing and rating their own maturity levels, however, the current state of the capitalist system seems resistant to transparency and inured to objective, impartial and rational critique. MI therefore recognizes and openly acknowledges that, if the system is seriously ill, only a whole system cure will put it on the road to recovery.

If you would like to sponsor further, critical MI research, with the aim of curing capitalism; or if you are an existing research organization willing to offer some time and expertise, please contact me in strict confidence.

Paul Kearns

Chair

Maturity Institute

paul.kearns@maturityinstitute.com

 

 

 

 

 

 

 

 

 

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