Commercialisation of earnings?

It’s a horrible phrase so I’ll try to explain the thinking. I started the above diagram about 6-7 years ago and I’ve been adding to it ever since (and it’s nowhere near complete as it will continue to grow and change. It represents three shifts which are occurring at the same time, and which the Covid appetite for freedom has really accelerated, although these are not new.

Firstly, there has been a desire for more work-life balance for years (I’m tempted to say decades) with people looking for ways to make their day less structured and prescribed.  That’s the ovals here – with the outside the least structured, ie you can do the activity whenever you like (and in many cases it doesn’t take that long!).

Secondly, and I think this is at the heart of the revolution I’m seeing is the shift towards bringing in money in new and differing ways. If the industrial revolution was about what work we were doing, this revolution is about how we, as individuals, finance the cost of living. So I’ve identified (thus far at least) 4 buckets of activity which people are using to bring in money. The first is employment – that’s pretty familiar to most although it too is changing. The second is talent leverage – that’s where the familiar concept of entrepreneurs sits – people who use their own talents to create a business. But it is now so much more. The third is asset leverage – think Uber or Airbnb or Ebay. Making money from things that you items that you have and you either no longer want/need or you are underusing. The fourth is investment – which again is not new, but how it is being done today, and who is doing it has changed hugely.

The third shift is that increasingly a portfolio income – made up of several of these at any one is becoming more common, and has been enabled by the ability to many of these in what used to be ‘leisure time’, or at least without them consuming the whole day. And this fits neatly into what Lynda Gratton and Andrew Smith in their book/site 100 year life suggests – that we need to think about work in a completely different way. Not a single career, but something which flexes with our point in life, and the life style we want and can afford. Employment has usually in the past been seen as secure – and that will be key for parts of our life. Freedom to travel, to develop and explore is much more of a characteristic of those in their late teens, twenties and increasingly healthy 60’s-80’s. There is so much scope here for choice.

Which brings me onto the big driver for all of this – connected technology. Those labels in brown are those which are only possible at scale through connective technology – internet and mobile to date but with more to come. And the caveat remains that this is not available to all – the key will be making those choices available across society as a whole, not just those with the relevant financial cushion.