What happened to the economy? It moved

As Americans begin to feel the effects of the collapse of mortgages, derivatives, inflation, credit problems and a war-driven economy, Germany, as of last year, has assumed the leadership position as the number one exporter. of goods in the world. also known as Gross Domestic Product (GDP). Yes, little Germany.

Until 2005, the average German worked 35 hours a week. Most Europeans are paid for a year of 13 months while taking 6 weeks of vacation in the summer. The German government together with the trade union party changed the official work week to 40 hours and in less than 2 years, Germany, with a population of 83 million, became the number one exporter in the world. Do the math. From the United States, with a population of 350 million, including citizens and non-citizens, GDP has slipped to second place. US production per person is not very efficient. China is just beginning its industrial age and with a population in the billions, it won’t be long before they outnumber everyone. Since we manufacture nothing but war equipment and construction for the rest of the world, California is no longer the 6th largest economy in the world, sorry Governor Schwarzenegger. America will now be a service-driven economy.

Germany did something else in the last two years: it became the leading e-commerce market in Europe. Of the €438.7 billion generated by online commerce, Germany generated 30% of that. Germany also has the highest percentage of Internet users in Europe, with 56 million Internet users out of its total population of 83 million.

Now that is a sign of prosperity. Try comparing that to the US dollar sinking and you’ll get a picture. We are talking about a lot of money, digital money. Europe forecasts 779.8 billion for 2010.

While a large part of our population is complaining about Globalization (something they cannot stop), a change is taking place that is not obvious to the naked eye. A large part of the global economy is not part of the bottom line,…yet. It’s the online economy. I’m not talking about buying and selling, I’m talking about socializing.

Facebook is getting all the attention lately, but let’s take a look at massively multiplayer online role-playing games (also known as MMORPGs), where people just hang out and chat, play or fight with subscribers from anywhere in the world. Many of you have heard of them: World of War Craft, EverQuest, Half Life. The quieter, but just as exciting, online pleasure is Second Life. This Metaverse (a name for any online world) is a super version of the real world where players can build a house, get married and have careers that, in the real world, would be out of their hands. In Second Life, one can become the next great party planner, real estate mogul, or clothing designer. This is not speculative, this has already happened (the past tense is intentional).

This online world can be had for just under $11 a month. But it’s not subscription-based revenue that I want to talk about here. What I am focusing on is the virtual economy of Second Life. The Linden dollar is their currency and somehow through PayPal you can exchange them for real currency. I think three Linden equals one US dollar. (If the dollar continues to fall, the currency exchange could be 1:1). People pay for services like clothing, building new houses, or even updating their avatar. Citizens of Second Life pay handsomely to create a fantasy life where they can live some of the careers and lifestyles they can’t easily have in this world. This virtual economy is generating $15 million per month!

And, I apologize for this, what is more surprising is that I am citing data from a year ago! $15 million per month! Who knows how much it has grown since the last calculation.

Well, the economy has moved on and for most Baby Boomers, this doesn’t make sense. It can not be seen! But for those born after 1985, it makes a lot of sense. These are the generations that were immersed in video games AND the Internet. Reaching out to a virtual world and speaking with a global community is natural to her process. These young people are not focused on America. Boomers acquired computer skills long after they finished college.

The other problem is that most Boomers (and I am one) see the Gamer as a geeky teenager hiding in his room. By contrast, the average gamer, both online and offline, is 33 years old, and more than a third of them are women. That means most of today’s VPs, managers and employees are gaming in their spare time. And here it goes: “Brad, what does this have to do with leadership?”

A large part of their workforce is gaming, shopping, and creating in a virtual world that we can’t see unless we’re logged in. This comfort with technology is greatly helping to drive globalization and creating borderless governance. Digital natives like to call this Virtualization: the ability to access servers, data, and staff regardless of location.

How will you manage morale, productivity, or face time when your key people are spread across five continents? Technology is the answer, but more importantly, those who can handle technology and people at the same time. Operating locally but thinking globally becomes paramount for any competitive organization. So it doesn’t take a rocket scientist to figure out that the trends of the future will be managing a virtual workforce. In fact, it’s already happening, as IBM builds pavilions in Second Life for the exclusive use of its employees and customers and another major presence in Torque. And this, my friends, is old news.

There are two questions for the future of business: How will you manage virtual employees in a Metaverse like Second Life or Torque? And, if manufacturing is an Industrial Age construct for measuring production against the total workforce, then how will future GDP or ROI be measured and converted into real-world currencies? Traditional branding doesn’t work on the internet nor do traditional leadership skills. A new primer must be developed that works for all cultures, all borders, and all currencies as we cross the great divide from the industrial age to the information age.

What will be the Best Practices in this new world? Time will tell.

Thank you for reading,

Brad Szollose

Avatar – A graphical representation of oneself used for virtual reality worlds, also known as the Metaverse. Not necessarily an exact replica, one’s Avatar can look like anyone or anything one desires. Gender swapping can be done online, as well as any other parameters the game allows, as an Avatar can be anything the user wants. When EverQuest launched, a hacker changed the games’ programming code to create pink armor, an idea EverQuest’s designers had yet to think of.

Metaverse: Slang term for the virtual reality-based Internet of the future, first coined by science fiction writer Stephen Johnson in his book Snow Crash. People interact in this universe through the use of a digital representative called an avatar.

Fun Facts: China is the number one importer of goods to the United States. Walmart is the second. If the United States only manufactures war machines and construction equipment here on our shores, what does that become for our economy?

Email me at brad at liquidleadership dot com with your response.