Economics of Mutuality is an alternative ‘correlative capitals’ business model to the Milton Friedman Chicago School of Business model of financial capitalism, and endeavours to be adaptable to other businesses. Mars Catalyst’s simple, stable and actionable metrics were developed involving many partners, experiments and revisions.
Mars shareholders had a holistic view and sought to determine a ‘right level of profit’ that would promote value chain stability and business sustainability. In 2007, the “intentional business model” was introduced and in 2009, Mars pioneered the Economics of Mutuality (EoM), launching multiple pilots to enable a transition from a profit maximization business model to a holistic value optimization approach incorporating People, Planet and Profit Dimensions (3Ps) through simple, stable, actionable and non-monetized metrics. In 2014, EoM went public.EoM assumes that business behaviour can only be meaningfully altered through measurement. Mars measures the business contribution, e.g., Maua after two years is 11%+ of the Kenya business (Profits) and addresses root causes (People and Planet). Collecting data and measuring holistic impact continuously along the Maua value chain is a promising work in progress. Mars does not currently compare results to other organisations. The different business units are separate, but do not aggregate for performance management. Similar business models have the same KPIs – aggregated for reporting purposes.