Intro Fiat is our name for the system we live in today, based on capital and competition. Corp, LLC, LLP, etc., all Fiat, are all owned by one or a few people and their job is to create more capital for the owner(s). Radical is an alternative to it, based on contributions and collaboration, not on capital and competition.
Radical Systems: The Next Step for Businesses
The Radical systems, we believe, is the next stage of development for businesses. It will bring about an economic transformation for companies through truly engaged people.
Collaboration
To make the business transformation happen, first the people have to transform from competitors to collaborators and manage and own companies that way. Collaboration does not come naturally because we have been born and grown up in the Fiat system, as have our parents, grandparents and many of those who came before them.
We are driven by the desire to collaborate; we want to make an impact. For example, watch how people collaborate and help each other after a tornado or an earthquake.
Impact
The Fiat system blocks us from collaborating at work and only lets us do whatever the boss thinks will grow the capital of the Fiat owner(s).
The Radical system allows you to make an impact based on collaboration and openness. The Fiat system pushes us towards competition and secrecy. It blocks us from making an impact other than to make money.
At Fiat workplaces, we give up our autonomy for money and instead do what the boss says to do and how to do it. Follow the rules. Stay in your silo. Keep doing it the way the boss said to do it, even if we know how to do it for less cost and effort.
This makes innovation impossible, and it makes people disengaged. Just keep doing your work until it is time to leave.
Companies
Co-management has momentum behind it. But co-management is not enough. It needs co-ownership.
Co-management by itself is fragile. The minute the benevolent boss leaves the stage, it is more than likely that the system will go back to the Fiat system. On the other hand, when everybody is a co-owner, the company will remain radical.
In any case, this is going to be difficult and quite possibly take a long time, but it will happen.
The Importance of RADs
RADs are the key to making this work. RADs are unitless tokens that can factor anything, including money. If you have twice as many RADs as me, you get twice as much, say, money as me.
Maybe a system based on capital tokens (shares), was all that could be done in the past. But we are in the 21st century now. We carry supercomputers in our pockets, and we can connect with anybody in the world through the Internet.
With a telephone app, we can recognize contributions and give people RADs anywhere in the world. Most importantly, such an app (RADs!) will allow us to do this directly and skip the boss altogether.
Matt has been in the computer business since 1976, first in Chicago and later in Silicon Valley. Throughout his career he’s helped raise over $50 million of Venture Capital. His last company was sold successfully. In the last seven years, he has concentrated on developing the Radical model with Adrian Perez and Jose Leal. Last year, he has also co-started a company, rEnchilada, with his partner Jose Contreras. rEnchilada is a sales company that handles the whole sales process.
