Posted on Mar 20th, 2007
by
adrian
Wal-Mart considered to the book “The Wal-Mart Effect” is not just “the most powerful, most influential factory in the world”, Wal-Mart has also reshaped the “very ecosystem and rhythm of supermarket business”. The prices are 15 % cheaper than anywhere else. In 2004 Wal-Mart opened 244 Super centers in the States, in 2005 it opened in the first 10 months 232 new Super centers. That is 5 centers per week, each working day a new super center. How can they grow that fast, sell stuff so cheap and have an annual profit of over 10 billions (10,3 in 2004)?
It is due to the revolution of supply chains, which helped to make the world flat1 and Wal-Mart rich. Today in a global village with a hyper dynamic economy what you need is information. And that is what Wal-Mart pioneered, according to Yossi Sheffi, expert in supply chain and Professor at MIT, “It is not about making stuff but how to supply it around the globe.” Wal-Mart was one of the first businesses to implement a work flow2, which includes contradictory elements as well as high tech within the company and within partner companies.
Due to satellite and Internet Wal-Mart is now able to deliver their 60, 000 different goods almost in real time. Each time somebody picks up something in Wal-Mart the information goes to the headquarters and a new order is placed, so that just before the store sells out the products are delivered, exactly what is needed, just in time. Everybody makes a profit, cheap goods for the people, a good shareholder and less effort due to the increase of efficiency and technology. But what was the driving force in Wal-Mart to develop to such a complex organization?
Simply because of necessity, Wal-Mart sitting in nowhere needed to build his one supply chain in order to survive.3 The simple fact of isolated life conditions and the pressure due to the Wal-Mart value “Everything cheaper!” let a new thinking emerge. Due to that Wal-Mart transformed from a tiny food chain into the most powerful business in the world.
In order to build such a work flow supply chain on a global scale it is easily understood that it was a systemic-integrative thinking (yellow) which emerged4 and was than used to in business, with Wal-Mart as a pioneer, to conquer the world almost over night. This is also seen as the flattening of the world5 and the rise of the individual. The capacity of integrative systemic thinking allows us to live in a global village for the fist time in human history. But Wal-Mart is not the solution of the problems today it is even more part of the problem.
The growth and systematical reduction of the price is only be possible if other people work more for less, you get cheaper raw materials or less quality. There is a time when you find out that you can not get more efficient in your supply chain, your trucks have a satellite connection so that they can be moved all over the place at each time, your staff has earplugs which tells them if they do the right amount of work in time (they even can chose between a man and a woman voice) and you even have a meteorologist to watch the climate because if there is a hurricane coming your shops needs more candles and other survival stuff down in California. If you by then still believe in exterior growth than the only possibility at the end to keep the price low is to exploit people and nature and if you are as big as Wal-Mart that doesn’t mean to cut just a few trees. Wal-Mart itself, even if it is operating in a global scale doesn’t understand his complex impact of the world. And one of the reasons why is the moral foundation, implemented by the founder Sam Walton.
Walton was an typical “redneck type” from Arkansas, with a simple entrepreneurial idea of selling cheaper than everybody, with just enough mind to run the business, and with much more determination and energy and an uncompromising nature to bargain until the last penny. He wasn’t a bad guy, he truly believed in hard work and family values. And all of that was reflected in his morals, “Us or them”, if we sell it cheaper we win if not we loose. It is said that even on his deathbed his son was reading him the numbers. After his life, due to his efforts this basic and simple “Cheaper than everybody” was not just part of the Wal-Mart culture, it was and it is the basic value since than. There was basically no place and time to develop world centric morals, but enough determination and a survival threat (in a business world which focuses on exterior growth) to let Wal-Mart integrate yellow thinking in its business structure. But supply chains don’t deliver morals.
Wal-Mart today is not liberated by the flat world but stuck in the flat land. A supply chain (LR) doesn’t include the development of morals (UL) at all. To quote Wilber (Philosophy of Freedom), “ You completely can manage system theories or holistic thinking but poorly be developed in emotion, moral and spiritual streams [multiple intelligence].”
If you take a step back and look at the system that Wal-Mart has created, you identify a business organism embedded installed over the ecosystem of our world. Every Wal-Mart can be seen a cell of this organism. And this organism basically refuses to stop growing, almost like cancer. Wal-Mart is just the perfect example to show how yellow thinking is shaping the world and producing what is called Globalization. Part of Wal-Mart’s “ecosystem”, basically the exterior system, the supply chain, is very yellow and needs to be studied and understood if you want to find large scale solutions for today’s problems. But even more important is the value system, or vMeme, which runs such a complex institution.
A lot of the critics and movements against Wal-Mart and globalization driven by the Cultural Creatives5 unfortunately got stuck on exactly this issue. To be a Cultural Creative simplified means to have a pluralistic worldview and morals. The biggest problem pluralistic worldviews have is that they have difficulties with hierarchies. And of course if you live in a flat world you don’t need them. It is a fact that a lot of hierarchies in this world are missing used or unhealthy. But to develop moral capacities or grow emotional and spiritual, we can’t deny interior growth manifested in natural hierarchies (Holarchie). In order now to fight Wal-Mart and to reshape globalization in a more human way, which means to encourage world centric values, no old approach will help us. The socialist movement is dead and was build mainly on a collective-mythic beliefs, political parties are corrupted and not an option.
Ironically a lot of the “spiritual” and anti-patriarchal thinking and other pluralistic approaches, which call themselves “holistic”, are referring to the new science and the new, thinking (or paradigm) which is basically the same thinking with which Wal-Mart's supply chain runs and ruins the planet (LR, The It's domain in Wilber’s 4 Quadrants). Because just to change your thinking doesn’t mean you are transformed or more enlightened than anybody else. You still can be very egocentric driven and not very evolved in dealing with emotions i.e.. To believe in New Science is one thing, but to develop the interior capacities to integrate body and mind is another. Both Wal-Mart and a lot of the Cultural Creatives are trapped in one thing, Flatland.
Sure a patriarch named Walton formed Wal-Mart’s culture, but the only way to change it, is first to accept that that’s where Wal-Mart is at in its moral and worldview development. In order to help not just Wal-Mart, but the interior world to grow into a more world centric and sustainable thinking you need to include the idea of development and natural hierarchies, better known as Holachies. In order to move on the “Anti-Globalization” movement needs to take a retreat and to do some homework like meditation, shadow work and a good walk at the sea or in a beautiful forest and read some good books. The fear driven wins of Seattle and Cancun are over, know we need big scale solutions.
Higher moral values (like pluralistic and integral) are not developed by business or politics but implemented trough cultural influence7 into politics and than into business. Cultural Creatives need to recognize the deep value systems within each culture in order to move on. People individually need to integrate body, mind, soul and Spirit to develop integral (yellow) moral values. The fact that moral values grow inside a person and are not thrown over by some ideologies (except of mythic-rational world views) make the task for the Cultural Creatives clear: We need to be able to see the whole picture, which means to understand where somebody is in his development and how to talk to him so that he can changes as fast as possible or at least live from the place he is at the most healthiest. You can’t change anybody, just yourself, but you can help to set up the conditions for change, even on a large scale. In order for that, new education approaches need to be developed which are focusing on deeper capacities with in human beings. And there are already people one their way to take this next step like Gaia U, Otto Scharmer and his Initiative and the EIA (European Integral Academy).
Notes
1One of the reasons is if you believe Thomas L. Friedman due to the Flat World. More than that in his 10 flatteners of the world, No. 7 which is supply chaining is dedicated entirely to one Firm: Wal-Mart.
2 “Spiral Dynamics, mastering values, leadership and change”, Don Edward Beck, Christopher C. Cowan, 1996 Blackwell Publishing
3According to senior vice president of corporate affairs Jay Allen, “I wish I could say we are brilliant an visionary, it was born out of necessity. The reason we build our one supply chain is because we are sitting in nowhere.”
4See “Spiral Dynamics, mastering values, leadership and change”, Don Edward Beck, Christopher C. Cowan, 1996 Blackwell Publishing
5 “The world is flat”, Thomas L. Friedman, 2005 Penguin Press, What Friedman describes as “the 10 flatteners of the world” is mostly new technology (Lower Left development, see Wilber, Integral Psychology p. 182, Flatland), the fact that a lot of people don’t have access to it or the ability to use it, and the interior dimensions are not taken into account by his research.
6 "The Cultural Creatives - How 50 million people can change the world", Ph.D. Paul H. Ray and Ph. D. Sherry Ruth Anderson,Three Rivers Press 2000
7Like shown in the graphic below, you can divide the three main powers in authority (the political state which implements and watches the law). The power is the economic sector (brotherhood or partnership in business, builds the physical structure and satisfies the needs). The influence which is basically people or culture (freedom in speech and thought) which influences the authority and the power, because it articulate the needs to the economy and makes sure that the right laws are installed by the authority (the government). Capi is the place where this Sectors overlap. If responsible leaders (more some sort of facilitators) out of the three sector come together and go through a process (described in the U-Theory, by Otto Scharmer) new substantial solution and institutions could emerge.
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