Meaning Based Management and Ideology
Evgen Klochkov

© Evgen Klochkov, 2024

ISBN 978-5-0064-6889-4

Created with Ridero smart publishing system

Introduction

“The world is not ruled by words and laws, but by signs and symbols.”

What factors contribute to success in business? This book reveals how an organization’s ideology can be a key factor in achieving business success. I illustrate how meanings can facilitate the transformation of an ordinary team into a cohesive entity, and how beliefs can serve as a driving force in achieving objectives. I illustrate how a comprehensive definition of overarching objectives and a transparent articulation of values can motivate employees to achieve new heights and become a pivotal element in business success.

This book is intended for executives, entrepreneurs, and managers seeking innovative strategies for building an efficient and profitable company over the long term. You will gain insight into how meanings and beliefs can propel you to the next level. This book serves as a personal guide and practical instruction manual. This book provides practical tools and techniques for implementing ideological principles in your business. You will learn how to develop a clear ideology and implement it to achieve optimal results. I will demonstrate how an organization’s ideology can significantly influence its business strategy and how it can be leveraged to gain a competitive advantage.

I will present to you a practical model that I have been utilising for many years in my business projects. This model will enable you to rebuild your organization, placing the principles, values, and ideas that form the basis of its structure at its core. In this case, while the organization will remain externally the same, it will be internally transformed into something new, with a completely different potential and opportunities.

Before I begin, I will provide some context about my own experience to illustrate the circumstances that prompted me to seek solutions. I will outline a number of straightforward yet highly significant concepts, namely responsibility and the planning horizon. Without this foundation, it will be challenging to build a high-level organization that is not only invulnerable but also anti-fragile. We

will transition from philosophical concepts of mission to tangible, operational business tools, including processes and job descriptions. We will explore the intrinsic link between these elements and how a company’s mission provides a foundation for all activities. Let us begin.

I am a staunch proponent of these concepts and do not align with the perspectives of those who have not encountered the circumstances they describe. When a person discusses business, I always look to gain insight into their experience in the industry by reviewing their biography. If he lacks experience in commercial structures but offers consultancy, his advice may be valuable but is unlikely to reflect reality, particularly in the Russian context. While other areas of knowledge may operate differently, in business, where I have spent over 20 years, this approach has proven effective.

Please allow me to provide you with some background information about myself. I began my career in sales at the entry level and started as a salesman in a small Canon store. After three months, I was recognized as a promising member of the sales team and presented with an award at the Hollywood Nights club in St. Petersburg, a memento I still retain. Six months later, a conflict arose between the owner and the manager, resulting in the entire sales department being forced to seek alternative employment. My subsequent position was with an automotive products company. I enjoyed the sales role, particularly the personal sales and negotiation aspects. I was keen to pursue a career in this field. Over time, I had the opportunity to work with some of the most accomplished professionals in the field, which allowed me to gain valuable insights and expertise. I gained my experience through hands-on learning. It was challenging, but always engaging and driven. One of my mentors once informed me that at the age of 25, he had already assumed the role of commercial director, and that I would have approximately a year and a half to reach that same level. A few months before my 26th birthday, I was appointed Commercial Director of a small St. Petersburg company that was part of a large logistics holding company. In 2006, I was engaged in high-risk driving in a sports car with street racers, attending the most exclusive nightclubs, and the bartender at a popular bar on Nevsky knew me by sight and would inquire about my usual drink order. For an individual who had departed from the confines of a military academy four years prior, this represented a notable achievement. At least I was not aware of any other individuals who had pursued a comparable career trajectory.

During the summer months, I utilized my sports car to navigate to Crimea, with a subsequent transit through Moscow. Moscow made a significant impression on me, particularly in terms of its sheer scale and pace of operation. I came to the realization that my life would never be the same and that I would have to relocate. It was a decision with no clear destination and no guarantee of success. I was forced to relinquish my vehicle and all my personal belongings. I required funds for the relocation and, for the first time in Moscow. It was unclear how long this initial period would last. On September 26, 2006, at 7 a.m., I was at the Leningradsky station in Moscow, calling newspaper ads for renting an apartment. Indeed, the advent of the internet, mobile phones and property search platforms has transformed the way we search for and rent properties. At the time, renting an apartment in Moscow was a challenging process. I viewed the first apartment in the afternoon and the second in the morning at 11 a.m. I was fortunate that the second option proved to be a suitable match for my needs, despite the landlord’s reluctance to negotiate. Despite the lack of a bed due to the apartment’s recent construction and incomplete furnishing, I accepted the offer. I was without accommodation and required to purchase an air mattress and other necessary items at Mega Mall. However, this did not present a problem as I was able to establish myself in the capital city.

After a period of approximately six weeks, I secured a position in the sales department of an advertising company. Six months later, colleagues from my former company in St. Petersburg, which handles automotive products, contacted me and offered me an interview for the position of “Sales and Marketing Director” at their Moscow headquarters. The following year, I assumed responsibility for the automotive products division of the company, where I had previously served as a branch manager five years earlier. However, I remained unconvinced that even such a position and such an income would allow me to truly establish myself in the capital. The cost of real estate was prohibitively high, and there were no prospects of purchasing it. At that time, there were no full-fledged mortgages available, and my parents frequently inquired about my plans to settle down, get married, and purchase an apartment. In general, I decided to move on, and on an ad I came to a somewhat mysterious organization occupying a whole entrance of a residential building on Leningradsky Prospekt.. They were looking for a sales director for Italian VIP helicopters. After a series of meetings, I accepted the position and joined in a unique office. My desk was very similar to the desk of our President. Well, at least the one we see on the news.

The process of becoming familiar with the products was akin to navigating a parallel reality. AgustaWestland helicopters in VIP configuration, in collaboration with the Versace fashion house. All of this was a truly remarkable experience. I had the opportunity to travel to Milan to visit the AgustaWestland factory, attend aviation exhibitions in Europe, and participate in private events in Moscow. Everything would have proceeded according to plan had it not been for the global economic downturn of 2008.

In September 2008, I signed the first Letter of Intent for the delivery of a VIP helicopter with a client. This was while sitting in his office, with a large plasma screen displaying market quotes on the wall, showing a sharp decline. The client indicated his intention to sign the agreement, but requested a one-week delay in the money transfer to allow for further consideration. As a result, the contract was not executed. I was able to finalize my first deal a year and a half later. It was a one-of-a-kind transaction. Firstly, this was the first time that Italian manufacturers had sold this particular model of helicopter in Russia. Secondly, the financing was provided by a large Russian bank. Despite the signing of the sales contract on

December 29, the top management of my company, who resided primarily in Israel, remained unconvinced until the last minute. However, I was aware of the established procedures and the imminent conclusion of the financial year. Therefore, it was necessary to proceed with determination. The upper management only demonstrated confidence once the initial payment had been received in the settlement account on the morning of December 31. Additionally, I engaged in a distinctive negotiation with the Ministry of Emergency Situations, which later resulted in a transaction for Dmitry Anatolyevich. At that time, he held the most senior position in our government. Subsequently, a series of events and transactions occurred.

Despite the assurances from my Israeli managers that I would be rewarded financially for my achievements, I was ultimately disappointed. I was required to negotiate my commission on a piecemeal basis. Ultimately, I determined that this situation was untenable. While the project’s prospects are clear and it is gaining momentum, there is no financial compensation in place for my contributions. I have accepted an offer from a Swiss business aviation company that operates private jets. It later came to light that two-thirds of the company’s clientele are ultra-high net worth individuals from Russia, and the company is truly legendary.

My first task at the company involved a complete clean-up of the office, which was infested with unscrupulous rodents and had a reputation for petty theft. I arrived at the office to find it empty, with the exception of the secretary, who was finishing her last day. I began from the beginning. In just three years, my office achieved results that surpassed the most successful years in the history of the Moscow office. Consequently, for three consecutive years, we were named the best brokerage company in Russia. In the fourth year, we were also selected as the “Best Foreign Business Aviation Company.” This was my final year in the role of Managing Director and as an employee in general.

I established a company, ANG Intellectual Bureau, with the objective of acquiring crisis management firms, implementing a restoration plan, and subsequently selling them. I had considerable experience in crisis management. Six months later, I updated my profile to reflect my expertise in strategic consulting, ideology consulting, and meaning-based management. It proved to be a much more engaging venture. However, I chose to pursue further opportunities and expanded my portfolio to include luxury real estate. Upon observing a Bentley automobile in Sevastopol, it became evident that substantial capital had arrived in the region, and the trajectory of its development became apparent. The entire region will undergo a comprehensive restoration and revitalization effort, returning it to the exemplary standards of a modern health resort and resort as it once was during the Soviet era. I selected Crimea as the initial point of operation and a testing ground for my hypotheses. Six months later, the portfolio of 360 properties had reached a billion rubles in sales value. By a couple of years later, our portfolio included several distinctive properties, each costing a billion rubles, with an average property value exceeding 100 million rubles. After four years, the company was selected as a nominee for the national competition in the category of “Best Luxury Real Estate Agency.” A couple of months later, it added unique properties from Dubai and Turkey to its portfolio. During my next visit to Crimea, one of my top brokers at “360 FLAT” proposed a joint venture in the VIP tourism sector in Crimea, which I accepted. As a result, the project on VIP tours in Crimea, Tavrida Trip, was launched, and the employee became a partner. Subsequently, one of my senior managers at 360

FLAT proposed the concept of establishing a concierge service in Crimea. The region is distinctive, the potential for growth is significant, and there are numerous complexities. There will always be a need to provide leisure opportunities for VIPs. This is how the Tavrida Prime project came to fruition, resulting in yet another salaried employee becoming a partner.

In my professional endeavors, I have consistently inquired as to whether there might be a more efficient, expedient, or superior approach to achieve the desired outcome. I am committed to ensuring that time and resources are used efficiently. I have consistently sought out more precise and effective tools to enhance my performance. Upon relocating to Moscow, I completed all the training modules in the field of NLP within two years, earning the international certification of Master Practitioner in the Science and Art of NLP. This knowledge and expertise have positioned me at the forefront of negotiation and influence. The difference was evident almost immediately. I subsequently obtained an MBA in Political and Business Communications and a Doctor of Business Administration (DBA).

In every class and every hour spent at the desk, I attempted to assimilate and transform the material into a tangible, workable tool.

If a lecture was not clear or relevant, I had the option to leave. Furthermore, I was not particularly interested in the opinions of teachers who were not up to date with the latest developments in the business world. My objective was to learn how to apply my knowledge in order to make my business more effective and profitable. I subsequently came to the conclusion that I wished to oversee the business on a strategic level. The operational aspects of the business became straightforward and uninspiring.

I chose to pursue a career as a manager of managers. Over time, I was tasked with developing meta-strategies, conducting long-term planning, and influencing at the meta-level. It took approximately four years to develop not only principles but also concrete, practical tools to become the leader of leaders. In other words, the role of a manager of managers is to create meaning for highly competent and intelligent individuals with strong energy and charisma, for those who oversee entire teams and possess unique long-term experience. I have over 20 years of personal experience in this field, including seven years spent in a managerial role at an advanced age, and have encountered questions that the vast majority of people do not even consider.

If you are in that 0.1%, then we can proceed to the next stage.

The information you read next is likely to provide valuable insights. You will have access to a technology that is highly effective and can be easily applied, while also being simple and logical because it is based on the laws of nature and evolution.

About ideology

Ideology (from the Greek ιδεολογία, from ιδεα (“prototype,” “idea”) and λογος (“word,” “reason,” “doctrine”) is the doctrine of ideas.

The term “ideology” first appeared in the 18th century, introduced by the French philosopher and writer Etienne Bonneau de Condillac. In his book, On the Spirit of Laws, he defined ideology as a science of thinking that studies the connections between concepts, language, and society. In the following years, the concept of ideology gained significant traction and was used to describe a system of ideas, beliefs, and values that drive specific political, economic, or social outcomes.

In this book and in my role as a mentor, I am defining ideology as a set of higher values and ideals about the meaning of life that motivate individuals and societies to act. I am most aligned with the concept of ideology when it is derived from the word “ideal” rather than “idea.” An ideal represents the pinnacle of goal-setting in human activity and development. The ideology under consideration in this paper is a set of specific private ideals as values. An entrepreneur who successfully combines their idea with the highest ideals of society and fulfills the necessary function at the optimal time and place is destined for success. Formulate your business ideas in alignment with your core values.

It is surprising to note that despite the commonly held view that humanity is indestructible, it is in fact highly vulnerable due to its dependence on ideas. Ideas, whether political, religious, or business-related, act as a lens through which people view the world, establish their place in it, and select their course of action. These systems become the basis for beliefs that generate emotional and actual reactions in a physiological sense, prompting action.

Consider the religious zealot who is passionate about defending the merits of his faith. Or consider the soccer fan who is unable to accept the existence of any team other than his own. Does this sound familiar to you? This is just one illustration of how ideas can influence our thoughts and actions. The question then becomes: how can we leverage these principles and patterns to our advantage? How can an entrepreneur leverage this ancient technology to their advantage? What is the optimal starting point? To illustrate this concept, I will reference a saying by Antoine de Saint-Exupéry:

“If you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea.”

It provided a framework for consolidating and organizing my thoughts and insights on this subject. However, I began by noting a notable aspect. In the early 2000s, while employed as a sales manager at various retail outlets, I frequently observed a competitive dynamic between representatives of two international sparkling water brands. It was surprising to note that, regardless of the representative, one brand consistently held the advantage.

They had the most optimal shelf space and display, and in general, they claimed to be able to take the second brand off the market altogether. Despite the similar age and income levels of the personnel on both sides, I observed these scenes and could only explain and formulate this situation for myself by noting that one representative is “more charged.” However, I was unsure of the exact meaning and composition of this phenomenon, as well as the most effective means of replicating it in a business setting as a manager.

“Without the supreme idea, neither a person nor a nation can exist.”

F.M. Dostoevsky

My experience

For some time now, situations of this nature have commanded my attention. Such instances have also occurred within my own company, at the outset of my career in the automotive product sales sector. Our sales team was the most effective in the city. In just 1.5 years, the company had captured a significant market share and, with my arrival, began actively expanding in the Northwest region of Russia. We were experiencing remarkable growth and success, and there were even legends about the company that we were doing something illegal. Otherwise, it was difficult to explain such rapid growth.

I have had the opportunity to observe and contribute to a number of highly successful cases. A commercial director with experience in tobacco and advertising, and a unique personality, negotiated with large Western oil companies that own a chain of gas stations. In just two hours, he transformed their initial dismissive and squeamish attitudes into warm and friendly ones. A handshake, an embrace, and a mutual desire to commence work. Naturally, deals were concluded promptly and effectively, resulting in the permanent removal of competitors from the market. However, five years later, when I assumed a managerial role in the Moscow office, it became evident that the “charged” atmosphere was unique to the St. Petersburg office. I was disappointed to find that the head office did not set the pace or provide an example. A few years later, when I was in charge of the Moscow office of a Swiss company, I observed a similar situation. After five years, the Moscow office had become more efficient than the head office in Geneva. This bias in the system began to create some unexpected situations. From that point forward, I will devote more attention to studying this issue.

The foundation of any successful enterprise is the vision and guidance of its founder. As one astute and seasoned professional advised me: “A company is a reflection of the duality of its leader.” It is difficult to dispute this assertion. A manager’s perception of the world and their ability to influence it directly impacts the success of the entire company. In essence, if a manager believes that he can influence the world, he is perceived as strong, smart, and influential by his subordinates, who then adopt this vision and sense of self in the workplace. Over time, they begin to work from new positions and gradually become what they believe in. This is an exemplar of leadership in its purest form.

However, I have chosen to take this a step further. What if a manager is unable to be physically present and provide daily guidance to the entire team? In a smaller company, personal guidance and presence are important and valuable. How should one proceed when dealing with a large company that has several offices in different cities? What if the company has operations in different countries? Moreover, how do multinational companies maintain a unified approach to work? A prominent fast food chain demonstrates consistent efficiency and profitability across all of its international markets. Sweet American sodas are also highly regarded and well-positioned in the market, holding leading positions on store shelves and in the hearts of customers.

I also focused my research on the activities of Western companies operating in Russia. At that time, I was the head of the Swiss office of a company, which provided me with invaluable opportunities to gain insight into the inner workings of the company as well as access to communication with top managers of Western companies. I was therefore able to make a great many discoveries and gain unique insights.

Western companies in Russia

One particularly striking example that left a lasting impression on me and prompted further reflection came from the business aviation market. One UK brokerage company, a highly successful enterprise with a global network of offices, caught my attention. Despite the challenges it faced, it had remained profitable for an extended period. The company’s top managers and employees changed, but it continued to thrive. We met with the top and line brokers, and I was impressed by the competence with which everything was organized. Not only in terms of business processes, but also in regard to the intangible aspects that imbued the office with a distinctive ambience and a pervasive corporate culture, effectively transforming any challenge into an opportunity. In other words, an individual with no prior experience in the industry can become a highly successful broker with the right training and guidance.

I inquired of numerous individuals for an extended period of time as to who was responsible for developing this matrix. However, no one was able to provide an accurate interpretation of my request. This is where the adage, “A fish does not notice the water it lives in,” became clear. After an extensive period of research, I discovered that the primary architect is the founder of this business. He is a man of advanced age who established the company in the USA in the early 1990s and subsequently spearheaded its global expansion, including into Russia. Upon hearing this, I inquired: “Does anyone here realize that a person created a business in Moscow more than 20 years ago, established key processes, provided autonomy within the strategic framework, and then departed? “And he has never returned. The company has continued to operate without him for many years and has remained a market leader.” In the context of the business aviation market, it is notable that structures created by Russian management have rarely survived to celebrate a company’s 10th anniversary. I was intrigued for some time, sharing this example with various individuals and attempting to ascertain the answer to the question, “How?”

Following several years of research, I have reached the conclusion that Western companies tend to limit their involvement in Russia and other countries where they have opened offices to executive functions only. The strategy remains with the parent company. Furthermore, the discussion of metastrategies, or strategies of strategies, is not permitted. The branches are provided with informational materials, including sales kits. In summary, this is a set of arguments and strategies for negotiations, sales and marketing plans, theses on upcoming PR actions and events, and other highly specific instructions and guidelines for conducting business. It is noteworthy that the creation of this documentation is carried out by individuals who are not publicly known, particularly within the branch. The company thus protects its business at the highest level, ensuring that key strategic issues remain within its control while allowing for flexibility within defined limits, with a system of control and incentives in place. Consequently, a notional corridor is established, which, if executed correctly, will lead the company to achieve its desired outcomes with a high probability. It is essential that the head office consistently collects feedback and analyzes it alongside the planned strategies, making any necessary adjustments to ensure optimal future performance. It’s an excellent system. It should be noted that the above description is a collective representation of a Western business operating in international markets and should therefore be treated as an idealised model.

Planning horizon

Another aspect that has been a surprising discovery for me is the planning horizon. All of the aforementioned companies plan a decade ahead, then create a sales plan for the year that branches split into quarterly and monthly plans. Even companies operating in Russia have a long-term plan in place. For an extended period, my inquiries regarding the “how” of the process went unanswered. There was a lack of trust. However, I began to receive responses.

One of the prominent Swiss business leaders who has had a significant impact on my professional development once stated that he consistently employed a strategic approach, even when he initiated his operations in Russia during the mid-1990s. At a minimum, for a period of 10 to 15 years. This was in the 1990s. At that time, planning was generally viewed as an unproductive exercise due to the rapid pace of change in the country. Moreover, the majority of Russian entrepreneurs remain unconvinced by this approach. This is due to the fact that the technology in question is no longer in use.

As previously stated, international companies only transfer executive functions to Russia, whereas strategic planning is a management function. Consequently, this knowledge is not shared at the local level, and in general, it does not extend beyond the head office in the West. Furthermore, Russian technologies were effectively buried under the remains of the former Soviet Union and its Gosplan. First, the significance of the country and its five-year plans was diminished, and subsequently, essential abilities and expertise in long-term goal-setting were neglected. At one time, for instance, these contributed to the nation’s advancement in space exploration or facilitated a breakthrough in nuclear power. The fact that we have forgotten how to do it does not mean that it is impossible to relearn.

As a first step, I suggest familiarizing yourself with foresight technology. For your information, Google employs this method to describe scenarios for the next 50 years. As an example of strategic planning, we can look to the approach taken by Ilon Musk. I recall that in 2015, few people were aware of his reputation. That’s when I had a conversation at the Higher School of Economics, where I was pursuing my MBA, and such conversations were relevant. I was promoting the idea that Tesla’s core business is not cars. It’s about a high-end takeover of the entire automobile market and expansion into other markets, even those that are not directly related. In summary, the key takeaway is that.

Lesson from Ilon Mask

The internal combustion engine has a relatively low efficiency rating of less than 25%. The physics curriculum in our educational institution. The most efficient electric motors achieve 90—95% efficiency. Furthermore, the use of an electric motor obviates the necessity for a gearbox. Furthermore, this is a highly complex and costly component in the overall design. In summary, electric motors offer a more efficient, cost-effective, and straightforward solution for automotive applications. Therefore, 99% of the automotive industry as a whole is eliminated. The results show that the top performers are not the industry incumbents.

The next item on the agenda is Artificial intelligence technologies, which were initially perceived as ambitious but which Google was already actively developing, eventually resulted in the advent of autonomous vehicles that do not require a human driver. From a technical standpoint, this has already been achieved. It is common knowledge that Tesla has developed an autopilot system and that Yandex has made significant advances in this field. The vehicle is therefore capable of driving itself.

This is where my expertise in financial matters becomes relevant. Therefore, the vehicle purchased and situated in close proximity to your residence, rather than being utilized on the road and generating revenue for you, is merely idling and incurring losses due to depreciation, taxes, inflation, and the cost of capital if the vehicle is financed. The vehicle could be operational on a 24/7 basis. This is why Tesla designed models with cameras pointed into the cabin. Ultimately, it is the passenger rating and other cab chips of the future. We bid you a warm welcome to the world of social ratings.

The next item on the agenda is… It is essential that cars be charged. It would be prudent to consider whether it is necessary to outsource this significant and valuable source of power. Let us consider generating our own electricity. Traditional methods are dominated by government-owned entities, and then Tesla Powerwall and Solar Roof products emerge as competitive alternatives. These products afford customers the ability to charge their vehicles, utilize electricity for their homes, and also sell excess electricity generated to the general grid. The subject of energy efficiency is a vast and ever-evolving field.

The next item on the agenda is… The smart car will serve as an active initiator of Internet traffic. That is a market segment that Tesla is keen to retain for itself. However, they have taken this a step further. We offer worldwide coverage. From any location on Earth. Starlink is currently in development. The ability to do so is at your fingertips, with no restrictions in place.

The next item on the agenda is… It is essential to understand that the Starlink satellites cannot be launched without human intervention. Why not retain ownership of this piece? Roscosmos? In the early 2000s, Mr. Musk approached Russia with a request to purchase a rocket. Any type of rocket would be suitable. However, they declined his proposal and sent him away. He ultimately founded SpaceX and pioneered the development of reusable rockets. Until recently, there were even jokes about delivering astronauts via trampolines. However, SpaceX ultimately emerged as the dominant player in this field. A review of SpaceX’s cost of delivering cargo to space is instructive. We will not be discussing the interaction with the Pentagon at this time. There were no actual prototypes produced. The distinction between ideas and technologies on paper and those that are embodied in an organizational structure and a product is a crucial one.

The next item on the agenda is… The construction of spacecraft requires a comprehensive understanding of materials science. As my instructor in materials science and technology of structural materials used to inquire on all examinations: “Please define eutectic.” If you are unsure, please do not hesitate to ask. This is to certify that the answer is F. It is likely that the Cyber track case will not be painted, but will be made of space metal instead. It would appear that the extensive research into material wear and tear, and the creation of demand for highly technological materials within the company, has not been as fruitful as anticipated.

What is the final outcome? The production of a single Tesla electric car has prompted the company to expand into a number of new areas. Furthermore, industry leaders such as Mercedes, BMW, and even Roscosmos have already established themselves as competitors in this field. This was the inaugural segment of the strategic planning master class led by Ilon Musk. Please see Part 2, which will address the topic of humanoid robots and their impact on the labor market.

Intangible and non-obvious

Let me elaborate further on this point, as I believe it is crucial for you to understand that the planning horizon is of paramount importance. Long-term planning enables an organization to navigate through challenging circumstances and reach its objectives.

Historical data demonstrates that truly outstanding results can only be achieved through long-range planning. Let us examine the age of the wealthiest individuals in the world.

This list does not include those who have recently become wealthy and/or well-known bloggers. It is not merely the matter of income and the amounts involved that are of consequence; time is of even greater importance. It is challenging to reach the pinnacle of success, but it is even more difficult to maintain that position.

Bernard Arnault, the richest man according to Forbes in 2023 and head of the French holding company LVMH, which includes more than 70 premium brands – from Christian Dior and Louis Vuitton to Chandon and Dom Perignon – has the following to say: “When we discuss a brand, I always consider what it will be like in five or ten years’ time, rather than focusing on its profits in the next six months.” Consider, for instance, Louis Vuitton, the global leader in luxury goods. My focus is not on the immediate profitability of the venture, but on maintaining its esteem and success over the long term.

However, it would be prudent to avoid attempting to immediately transition to the Premier League. Let us consider an everyday example to gain an understanding of what is meant by a planning horizon. Let us consider our society.

The planning horizon of homeless individuals is constrained to the immediate future, typically within a single day. The primary objective for these individuals is to satisfy their physiological needs and to identify and consume alcohol. Despite their talents and skills, they remain trapped at the social margins due to their tendency to live in the moment. The majority of workers are financially unstable, living one month at a time and relying on each new paycheck to meet their expenses. This is already a significant improvement. It is worth noting that banks, which are often criticised in society for engaging in unfair practices, actually make life more comfortable for workers. Even if the cost exceeds a month’s salary, it can be financed through credit, and housing can be mortgaged. However, all costs must be covered. The middle class is known for its long-term thinking, often considering decisions over years and decades. They are prepared to invest several decades in education, savings, or career development. Those in the upper class are able to consider the long-term implications of their decisions. They frequently possess a background that facilitates success, thanks to a favorable beginning in the form of inheritance, connections, and upbringing. Notable examples include Donald Trump’s father, who was a highly affluent individual, and Xi Jinping’s father, who was Mao Zedong’s closest associate. To avoid an exhaustive list, I will simply state that the upper class thinks globally and aims for long-term results.

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