Jonathan B. Graves, MSA, MIR
May 12, 2018
Think-Chain is a new theory for industrial organization as it relates to the structure of companies large and small within microeconomics; utilizing Blockchains core ideological root, Think-Chain implements a non-hierarchical system where partners work on equal footing. Specifically, internal firm organization functions with equality on most if not all levels as partners buy into a system that is equitable as well as flexible. Due to the innovative nature of Think-Chain, all scenarios have not been worked out and this is a first attempt to define, improve, and innovate the modern business organization of firms whose goal is to change social norms in which businesses adhere to derive more profit, better working conditions, and more efficient better managed companies. Organizational infrastructure not only determines how a company operates but it also defines goals, growth, and social norms for what is and is not acceptable in an industry, society, and in the courts. Think-Chain is a social economic theory that has limits; the benefits of Think-Chain cannot be underestimated or ignored. The greatest gift of Think-Chain to its proponents and implementers is the extreme degree with which flexibility is cherished and encouraged when applying its philosophy to a modern business environment. Firm objectives, organization, and behavior when implemented through the Think-Chain philosophy create an environment of trust and accountability; the entry and exit of professionals into an industry and the greater economic workforce of a city, state, or country can benefit from inter-generational transfers of responsibility and subsequently wealth creation. If you apply the input-output model of economics to a specific business in a microeconomic analysis, interdependencies between salary, revenue, hours worked, vacation time, and happiness of partners shows that flexibility is an idea to be utilized and not ignored. This cross-breed analysis of economic theories is the basis for Think-Chain and aptly named, the Graves Litheness Model. Litheness represents flexibility not only within an organizational structure but also within an industry dependent upon regulation, partner preferences, governmental oversight, supply and demand, and other factors that determine an employee’s happiness such as vacation days, trust, freedom and bonuses. The following paragraph will describe Think-Chain in more detail using the example of a company owned by five individuals that supply nursing services to 100 clients. By codifying knowns such as income expectation, hours worked, vacation time, and an equitable partner agreement, a conceptual picture is formed that emphasizes flexibility as the main benefit of Think-Chain applications in industrial organization.
Graves Litheness Model
Imagine five qualified nurses ranging in age, gender, personality, and career expectation. Now imagine the same five individuals all earning equal pay throughout the year due the implementation of Think-Chain and the Graves Litheness Model. The five nurses bought into a system of trust whereby the other partners could not only be counted on to fulfill their obligations but also to pick up the slack when needed based on life getting in the way of work. What I mean by life getting in the way is someone’s mother becoming ill, a female partner becoming pregnant, or other personal issues that could affect someone’s ability to work and or time commitment to work. While all workers would earn the same salary as a base for their pay, bonuses could make up the difference and be regulated monthly, quarterly, or annually. If a company decided through their intrinsic structure to give bonuses each quarter, then the time a partner takes off would be deducted in some formula against their bonus for that quarter because they either did not work as much as the other partners or they did not generate as much revenue. Utilizing bonuses to offset employee discrepancies in revenue generation, hours worked, efficiency turn each worker into a profit center whose profit or pay is reconciled as the partners deem appropriate (monthly, quarterly, annually). This philosophy or social theory not only rewards those who work the hardest, but it provides flexibility when needed for partners to take time off and tend to their personal lives. So on one hand you are motivating workers to work for themselves within a team unit but on the other hand you are giving workers the flexibility to adjust their schedule based on their own personal lives. Empowering a partner to make decisions that suit them for both income and time off is powerful.
Now imagine someone fresh out of college who received a nursing degree and is ready to not only practice nursing but to also be trained by other professionals with more experience. A recent graduate could approach a company that utilizes Think-Chain and the Graves Litheness Model to buy into a business via a business revenue projection or valuation technique. This same recent graduate could then apply at a bank for a loan whereby the business income and viability have already been established. Furthermore, the recent graduate would enter a company as an equal to other partners with the ability to set his or her own hours and income level through bonus adjustments. Now a young worker, a partner, has not only upward mobility but partners looking to do different jobs or functions in their lives can build a business up over a few years, sell their stake, and move on to something new and exciting. Imagine the nurse selling her stake in the nursing services company went back to school and became a doctor and is now able to buy into a Doctor’s practice in the same way that he or she was able to sell their stake in the Nursing practice. The idea of building a business and selling it within a few year timeline has the potential to create massive wealth via inter-generational transfers of responsibility such as taking over someone else’s practice, clients, workload etc.… By giving young workers the chance to be equal in business, you are not dictating that older workers with more experience are being paid unfairly for their work. The gap in skills would be something that partners would decide and implement into the bonus formula based on company profits or individual efficiency and revenue generation. However, if a young worker is exceptional, they would be rewarded immediately for their work and talent without having to wait 30 years in one company to make it to the top. This freedom and empowerment of young workers will revolutionize many industries, especially service related industries.
While many caveats exist with regards to Think-Chain and the Graves Litheness Model, the opportunity for growth and changing our social norms is absolutely tremendous. By and large, millennials would accept an equity-based model for business growth while older generations would be reluctant due to perceived unfairness or perceived entitlement. These concerns would be mitigated by the partner operating agreement and setup of each specific company. One major benefit to Think-Chain is that new workers could pair up with other new workers and reap the rewards and profit from scaling up their own business. Your reward is tied directly to your effort, revenue generation, and personal ambitions as opposed to the promotion potential your boss thinks you have. Government regulations and state regulations would affect industries like Accountants who need a CPA to sign returns or Lawyers who need a law degree to practice. These barriers to enter markets, or salary markets as I call them, exist already and would not be prohibitive to wealth generation, inter-generational transfers of responsibilities, or scaling up new startups. After all, it is the client who choses who services them. Choosing who we give business to is a key metric in economics which follows the path of skill and talent albeit not always. There are always circumstances where the most talented are not promoted or raking in the most for their services. By and large, Think-Chain and the Graves Litheness Model would empower a whole generation of workers to make their mark and have pride in their ambitions and accomplishments. The social revolution of Think-Chain is here and it is a revolution I will push. It is a revolution I am creating.