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Index
Cover
Additional Praise for Governance Reimagined
Series Page
Title Page
Copyright
Dedication
Acknowledgements
Introduction: RE: Governing
Sources of Wealth
Perceptions Matter
Keep Doing What You Do...
And Keep Doing it Well!
Part One: Creation and Evolution: The Source(s) of Wealth
Chapter 1: Understanding Value, Values, and Value Creation
How Much Is that Duck in the Window?
Are We Acting on Our Beliefs?
Economics and the Creation of Value
Only One Equation, I Promise
Notes
Chapter 2: Systems and Networks in Our Lives
Secret Agents
Systems Theory
Network Theory
Notes
Chapter 3: The Dynamics of Self-Organizing Groups
From Small, Unconnected Beginnings
Hops, Skips, Jumps, and Luck
Risk, Success, and Failure
The Game of Evolution
The Meaning for Organizations
Notes
Chapter 4: The Emergence of Complexity Economics
Two Schools in Conflict
What's Wrong with Traditional Economics?
Building an Economy
The Bounds of Rationality
Not so Timely or Stable
The Role of Networks, Evolution, and Social Interaction
What's Next?
Notes
Part Two: Looks Matter
Chapter 5: The Enterprise and Those Who Influence its Value
Keystones, Value, and Systems
The Organization's Social Network
Customers
Investors
Executive Leadership, Employees, and Contract Workers
Board of Directors
Suppliers
Creditors
Regulators
Analysts
Retirees
Case Study: Iceland and the Credit Crisis
How We Look Affects Our Value
Notes
Chapter 6: Our Human Behavior
Voices in Behavioral Economics
The Value of Utility
You Decide
What Are the Chances of That Happening?
Run for the Hills
Dragging an Anchor
I Could Lose How Much?
And Just When Would I Get that?
Everywhere, Biases
I Care about You
Our Evolving Thoughts
Notes
Chapter 7: The Human Reaction to Risk
The Perception of Risk
Processing Risk
Quantification as a Coping Mechanism
Looking to the Experts
Lessons for Governing our Organizations
Notes
Chapter 8: Social Amplification and Tipping Points
At the Threshold
Getting Tipsy
Walking on Air
Letting Out the Air
The Social Amplification of Risk
Case Study: The Madoff Affair
Probability and Impact Are Not Enough
The Real Impact
Notes
Chapter 9: The Role of Trust in Networks
How Do I Trust Thee? Let Me Count the Ways...
Embed with Trust
Trust Me and Do as I Say
If Only You'd Cooperate
Does Our Relationship Need to Be This Complex?
I Understand that You Need More Space
How Can I Ever Trust You Again?
Trust and the Potential of Risk Management
Trust and Value
Notes
Part Three: Not Everything Is Dead in the Long Run
Chapter 10: Value Revisited
A Random Walk across Midtown
Oh, the Possibilities
What's the Value of This Journey?
Utility Functions
Fat Tails, Utility, and Value
Parallels to Organizational Life in Systems
We're Positively Skewed!
Note
Chapter 11: The Role of Resiliency in Creating Value
Resilience
Brittleness
Single Points of Failure
The Path of a Problem
Threats to the System
Loss Avoidance Revisited
Becoming Resilient
Notes
Chapter 12: The Things that Motivate People
What Motivates Our Behavior within Organizations?
Do Incentives Even Work?
Management by Objectives
Darley's Law
Risk-Sensitive Foraging
Free Externalities
Management of the Commons
Notes
Part Four: The King is Dead
Chapter 13: The Governance of Risk
Risk and Risk Management
The Profession of Risk Management
Defending the Goal
Problems in the Box
A Regulation-Sized Goal?
Stress Tests, Scenario Analysis, and ANTs
Managing the Midfield
Setting Up the Offense
A Venture Capital View of the Organization
A Portfolio View of the Enterprise
Overall Governance of Our Organizations
Notes
Chapter 14: Networked and Distributive Governance
The Role of the Board
Principal-Agent Relationships
Key Duties of Board Members
The Carver Method
Ends and Means
Nested Policies
Board-Chief Executive Relationship
Extending the Model through Subsystems
Bringing in the Network
Corrupting Powers of a Unitary Board
People in Our Network Who Care about Us
Rolling it Out through the Organization
The Impact of Governance and Transparency on Trust and Value
The Integration of Networked and Distributive Models
Summary
Notes
Chapter 15: Economic Governance
Markets and/or Hierarchies
Cities, Organisms, and Organizations
Management of the Commons
Risk Capital as Commons
Bringing it Together
Notes
Conclusion: The Re-Governing Opportunity
Glossary
About the Author
Index
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