Ethos

= also called 'Ethos Valuable Outcomes'

URL = http://www.ethosvo.org

Discussion

Robert Pye:

"At Ethos our narrow frame is about service innovation. We get involved in products but not to invent them. We mostly buy them. Hence our value add is mainly knowledge based but capital expense can certainly enter into it as the project may have huge capital requirements (solar PV, for example).

Our "value exchange agreement" is meant to state terms between an individual and the "commons" which is Ethos. We have only done it for 40 people who equate to about 18 FTE's (full-time-equivalent's). But the plan is to take this to 6,000 (or somewhat less) be 30 November 2018. We have conceived our own commons as being a fixed size and asset value (£100M by 2019) and we are working our metaphorical fields to achieve this valuation in this time frame.

The term "Co-creation of value" for Ethos is mediated by our value exchange agreement. Each individual must have at least one (currently nobody has more than one but it is theoretically possible). We have three things we use to deliver this separately:

1/ Share-holding of Ethos: allocated by strategic value. I started Ethos with zero and have earned 4.2% over 4.5 years. No partner may own more than 10%.

2/ Off-balance sheet debt. This is a private agreement of the partners to "pay back" time banking or "sweat" contributions. Currently, the debt is about £1M

3/ Cash. Monthly, through expenses and Dividends. Most cash comes through dividends. This years target is £500k after tax and it is distributed entirely on merit.

This could be considered our value accounting system.

We are not vertically integrated at all. It is a horizontally integrated model open to all. Out city structure mean that we can have an Ethos in Every city and try contributing to the global commons. All of our work has to be defined as well formed problems that can be proven to be beneficial to humanity after we have delivered the outcome.

Perhaps one subtle but important difference. Our meta model is based on three entities: problems, people and organisations. We start with problems not organisations, that the key difference between the network society and an industrial one. Problems (imagine them as sentient) attract people and resources the people are mediated to one type of commons or another through a VED and networked organisation are established or adapted to service the solution to each problems. This is key. Another key difference we have is that the value is not "per product" or "per problem". We have many problems and only some of them become stars but the moderation is about collective good, collective benefit. It's not a political ideology and its not as polarised as capitalism but some people will end up getting rewarded for poor crops and some people will have their rewards moderated for stunning performance.

Or organisation is based on values: collaboration, trust and moderation. Open to all but agreeing a VED is mandatory and the process to becoming a partner ensures that there is a good chance that co-creation is possible by mapping the problems to the innate capabilities of the participants. There is also an instrument for fund raising at the Ethos level through members or through external financing through subsidiaries but only individuals can own Ethos not institutions." (email June 2014)

More Information

• slide deck with explanation about Ethos.

https://docs.google.com/file/d/0BxTEXuxJ2eWZc0RuaFE4RjVmVzA/edit