The New Capitalist Manifesto: Building a Disruptively Better Business

can we use reuse, recycle, repurpose, or remanufacture this input or output? If we can’t, can we trade it to someone who finds it useful enough to compensate us for it? If we still can’t, we have to find a way to strip it out of the cycle altogether, because cycles can’t be fed with bad inputs that can’t be recycled, reused, or repurposed.

The goal of a value cycle is simple: waste nothing, replenish everything.

Socio-effectiveness has to do not with the goodness of outputs, but the goodness of outcomes. It isn’t about doing things right or doing the right things. It is about righting the things we do—ensuring that our products and services ultimately result in positive, tangible benefits and refraining from those that don’t, can’t, and won’t. Socio-effect

Both Apple and Tata were able to perfect a long-standing imperfection: they simplified complexity. Both discovered that impossible new industries, markets, and categories pop into existence when economic imperfections that stop and stifle improvements from happening are erased.

Markets often remain incomplete because complexity imposes steep costs on production and consumption, rendering products and services uneconomical for many potential buyers, suppliers, or customers.

The twenty-first century capitalist’s agenda, in a nutshell, is to rethink the “capital”—to build organizations that are less machines, and more living networks of the many different kinds of capital, whether natural, human, social, or creative.

Economic evolution requires competitive selection. Customers, buyers, and suppliers must be able to choose freely and fairly between a firm and its rivals, without interference from anyone, anywhere. Free and fair exchange is the bedrock of evolution because it drives competitive selection.

minimizes waste, effort, and duplication, while maximizing satisfaction and creativity.

The third segment of a value cycle is reverse logistics, and the most efficient value cycles are the shortest. Value-cycle owners always have an incentive to move production as close to consumption as possible to minimize how far resources have to flow to be recycled, remanufactured, repurposed, and reused.

So Lego Factory is a value cycle where soft resources like ideas and designs are reused to make the use of hard resources—bricks—more efficient, creating thick value.