scieee Science in your language
[en] (orig)

The Strategic Value Ecology Model and Framework: A Living Systems Theory of Value Creation, Dissipation, and Renewal

Author: Matta, David
Publisher: Zenodo
DOI: 10.5281/zenodo.17314903
Source: https://zenodo.org/records/17314903/files/Matta_2025_SVEMF_v1.0_FINAL.pdf
The S a egic Value Ecology Model and F amewo k: A Li ing Sys ems Theo y o Value
C ea ion, Dissipa ion, and Renewal
Da id Ma a
© 2025 Da id Ma a. All Righ s Rese ed.
This wo k is p o ec ed by copy igh . I may be downloaded and sha ed o academic and
educa ional pu poses only, wi h app op ia e ci a ion. No comme cial use, de i a i e wo ks,
o modi ica ions a e pe mi ed wi hou explici w i en pe mission om he au ho .
Fo pe missions, licensing inqui ies, o collabo a ions, con ac : [email protected]
Abs ac
This pape in oduces he S a egic Value Ecology Model and F amewo k (SVEMF), a
comp ehensi e pa adigm ha ede ines business as a li ing sys em o alue dynamics
a he han a linea chain o p oduc ion and consump ion. SVEMF p oposes eigh
in e dependen dynamics—C ea ion, Exchange, Cap u e, Dis ibu ion, Re en ion,
T ansmission, T ans o ma ion, and Dissipa ion— h ough which alue ci cula es,
ans o ms, and egene a es ac oss ac o s and ime. Mo ing beyond adi ional pa adigms
cen e ed on compe i i e ad an age and p o i maximiza ion, SVEMF concep ualizes
business as an au opoie ic ecology whe e alue beha es like ene gy, equi ing con inuous
awa eness and e hical enewal o p e en en opy. The amewo k in eg a es insigh s om
alue heo y, sys ems hinking, s a egic managemen , phenomenology, e hical
sus ainabili y, and he modynamics in o a uni ied me a- heo y. Each dynamic is
ope a ionalized h ough measu able indica o s o ming a S a egic Value P o ile (SVP)
ins umen sui able o co po a e alua ion, M&A due diligence, o ganiza ional diagnosis,
and u na ound s a egy. Th ee empi ical mini-cases (HP-Au onomy, Disney-Pixa , and
LEGO) demons a e he amewo k's diagnos ic powe ac oss con ex s o ailu e, success,
and enewal. SVEMF is scale-in a ian , applying equally o indi iduals, o ganiza ions, and
dis ibu ed AI ne wo ks, posi ioning i as a ounda ional heo y o egene a i e s a egy in
he 21s cen u y. This wo k o e s bo h a philosophical b eak h ough and a p ac ical
me hodology, ans o ming s a egic managemen om a discipline o ad an age o one o
i ali y.
Keywo ds: S a egic managemen , alue ecology, sys ems heo y, o ganiza ional en opy,
alue dissipa ion, egene a i e s a egy, mind ulness, co po a e alua ion, M&A,
u na ound managemen
In ellec ual P ope y and Ci a ion No ice
S a egic Value Ecology Model and F amewo k (SVEMF™)
This wo k, including he S a egic Value Ecology Model and F amewo k (SVEMF™), he eigh -
dynamic alue sys em (Value C ea ion, Exchange, Cap u e, Dis ibu ion, Re en ion,
T ansmission, T ans o ma ion, and Dissipa ion), he S a egic Value P o ile (SVP)
ins umen , he Value Ecology Audi (VEA) me hodology, and all associa ed concep s,
amewo ks, and me hodologies, is he o iginal in ellec ual p ope y o Da id Ma a.
Fi s Publica ion: 2025
Ve sion: 1.0
DOI: 10.5281/zenodo.17314609
P ope Ci a ion: Ma a, D. (2025). The S a egic Value Ecology Model and F amewo k: A
Li ing Sys ems Theo y o Value C ea ion, Dissipa ion, and Renewal. [Wo king Pape ]. DOI:
10.5281/zenodo.17314609
T adema k No ice: SVEMF™ and S a egic Value Ecology™ a e adema ks claimed by
Da id Ma a.
Con ac o Pe missions: Fo comme cial licensing, de i a i e wo ks, consul ing inqui ies,
o any use beyond academic ci a ion, please con ac : [email protected]
Acknowledgmen s
The au ho u ilized AI assis ance (Cha GPT-4) o li e a u e e iew, o ma ing, and edi o ial
e inemen du ing he de elopmen o his manusc ip . All concep ual amewo ks,
heo e ical inno a ions, and s a egic insigh s a e o iginal con ibu ions o he au ho .
1. In oduc ion
Business has adi ionally been unde s ood h ough mechanis ic me apho s: he i m as a
p oduc ion machine, s a egy as compe i i e posi ioning, and alue as a commodi y o be
cap u ed and maximized. F om Michael Po e 's Fi e Fo ces o he Resou ce-Based View,
dominan heo ies ha e emphasized compe i ion, e iciency, and he accumula ion o
ad an age. While hese amewo ks ha e p o en analy ically powe ul, hey inc easingly
s uggle o explain he complex, in e dependen , and apidly e ol ing na u e o
con empo a y o ganiza ions ope a ing in digi al, dis ibu ed, and e hically conscious
ecosys ems.
This pape p oposes a undamen al econcep ualiza ion. Ra he han iewing business as a
compe i i e a ena o a p oduc ion sys em, we in oduce he S a egic Value Ecology Model
and F amewo k (SVEMF), which ea s business as a li ing sys em o alue me abolism. In
his pa adigm, alue is no me ely c ea ed and cap u ed—i lows, ans o ms, egene a es,
and dissipa es ac oss mul iple ac o s and empo al ho izons. O ganiza ions a e no s a ic
en i ies pu suing ad an age bu dynamic ecologies sus aining i ali y h ough con inuous
awa eness and enewal.
SVEMF in eg a es six majo heo e ical adi ions: alue heo y (A is o le, Smi h, Schele ,
D ucke ), sys ems heo y and au opoiesis (Be alan y, Ma u ana & Va ela, Meadows),
s a egic managemen and co-c ea ion (Po e , Teece, P ahalad & Ramaswamy),
phenomenology and mind ulness (Husse l, Va ela, Ma a), e hics and sus ainabili y
(F eeman, Elking on, Sen), and he modynamics (P igogine, Be alan y). By syn hesizing
hese di e se in ellec ual s eams, SVEMF o e s bo h a comp ehensi e heo y o alue
dynamics and a p ac ical amewo k o diagnosis, alua ion, and egene a i e s a egy.
The amewo k in oduces eigh co e dynamics ha o m a comple e me abolic cycle:
Value C ea ion gene a es no el y; Value Exchange enables ela ional in e ac ion; Value
Cap u e consolida es bene i ; Value Dis ibu ion ensu es ai ness and mo i a ion; Value
Re en ion p ese es esilience; Value T ansmission enables con inui y ac oss ime and
ac o s; Value T ans o ma ion deepens meaning and lea ning; and Value Dissipa ion ma ks
he en opic loss o po en ial h ough unawa eness o misalignmen . Toge he , hese
dynamics cons i u e a sel - egula ing sys em whe e awa eness unc ions as he
negen opic o ce— he conscious p ac ice ha sus ains i ali y agains decay.
This pape is o ganized as ollows. Sec ion 2 es ablishes he heo e ical ounda ions by
acing how SVEMF d aws om and ex ends exis ing pa adigms. Sec ion 3 a icula es he
eigh alue dynamics in de ail, de ining hei na u e, s a egic implica ions, and
in e dependencies. Sec ion 4 p esen s he ope a ionaliza ion me hodology, including he
S a egic Value P o ile ins umen wi h measu able indica o s. Sec ion 5 demons a es
empi ical applica ion h ough h ee mini-cases spanning M&A ailu e, in eg a ion success,
and o ganiza ional u na ound. Sec ion 6 explo es manage ial applica ions ac oss
alua ion, diagnosis, enewal, and go e nance. Sec ion 7 add esses he scale-in a ian
na u e o SVEMF om indi iduals o AI ne wo ks. Sec ion 8 p o ides a compa ibili y
analysis showing how SVEMF in eg a es wi h classic heo ies. The pape concludes wi h
implica ions o esea ch, p ac ice, and he u u e o s a egic managemen as a
egene a i e science.
2. Theo e ical Founda ions o he S a egic Value Ecology Model and F amewo k
The S a egic Value Ecology Model and F amewo k eme ges a he in e sec ion o se e al
in ellec ual adi ions, each add essing one dimension o business o alue c ea ion bu
a ely in eg a ed in o a single sys emic accoun . SVEMF uni ies hem by iewing alue as a
li ing, ci cula ing, and ans o ma i e o ce, linking economic ac i i y o e hical in en ion,
sys emic in e dependence, and human consciousness.
2.1 Value Theo y: F om Economic U ili y o Exis en ial Wo h
Classical and mode n heo ies o alue— om A is o le's no ion o ecip ocal jus ice o
Adam Smi h's dis inc ion be ween use alue and exchange alue, and Ka l Ma x's c i ique
o su plus alue—ha e p o ided he ounda ions o economic hough . A is o le
(Nicomachean E hics) es ablished ha exchange mus embody ecip ocal ai ness o
sus ain communi y. Smi h (1776) di e en ia ed be ween he u ili y some hing p o ides (use
alue) and wha i commands in exchange (exchange alue), while Ma x (1867) exposed
how su plus alue is ex ac ed om labo .
La e hinke s ex ended alue heo y beyond pu e economics. Max Schele (1913)
de eloped a hie a chy o alues spanning om senso y pleasu e o mo al and spi i ual
wo h, showing ha alue exis s ac oss mul iple dimensions o human expe ience. Pe e
D ucke (1954) ein oduced alue in o managemen discou se, aming business as a
mo al p ac ice se ing socie al needs a he han me e p o i accumula ion.
SVEMF builds upon his lineage by ede ining alue as dynamic and ela ional a he han
s a ic and measu able. I depa s om he assump ion ha alue can be ully cap u ed in
p ice o p oduc i i y me ics, p oposing ins ead ha alue is eme gen , expe ien ial, and
pe pe ually in ans o ma ion. Whe e classical economics emphasized p oduc ion and
exchange, SVEMF includes ans o ma ion and egene a ion—acknowledging ha alue
con inues o e ol e wi hin he indi idual o o ganiza ion a e he ansac ion ends. Thus,
alue is no me ely c ea ed and cap u ed bu li ed and ansmu ed.
2.2 Sys ems Theo y and Au opoiesis: Value as Ci cula ing Ene gy
F om Ludwig on Be alan y's (1968) gene al sys ems heo y o Jay Fo es e 's (1961)
sys em dynamics and Donella Meadows' (2008) wo k on eedback loops, sys ems hinking
has eshaped how schola s unde s and in e dependence and low wi hin complex
en i onmen s. Be alan y in oduced he concep o open sys ems ha exchange ma e
and ene gy wi h hei en i onmen , main aining hemsel es h ough dynamic equilib ium.
Fo es e demons a ed how eedback loops c ea e non-linea beha io in social and
economic sys ems. Meadows a icula ed le e age poin s whe e small in e en ions can
p oduce sys emic change.
F i jo Cap a (1996) la e amed o ganiza ions as li ing sys ems, while Niklas Luhmann
(1995) desc ibed social sys ems as au opoie ic ne wo ks o communica ion. The concep
o au opoiesis, in oduced by Humbe o Ma u ana and F ancisco Va ela (1980), ea s li ing
sys ems as sel -p oducing en i ies ha main ain iden i y h ough con inuous sel - enewal.
In an au opoie ic sys em, e e y elemen is gene a ed by in e ac ions among o he
elemen s wi hin he same sys em, and he sys em con inually egene a es i sel h ough i s
own ope a ions.
SVEMF ex ends hese ideas by applying hem di ec ly o he ci cula ion o alue. In his
iew, alue beha es like ene gy in an ecosys em— lowing h ough c ea ion, exchange,
cap u e, dis ibu ion, e en ion, ansmission, and ans o ma ion. Each dynamic
ep esen s a sys emic unc ion: c ea ion as gene a ion, exchange as in e ac ion, cap u e as
consolida ion, dis ibu ion as ci cula ion, e en ion as s o age, ansmission as
p opaga ion, and ans o ma ion as me abolism. The amewo k hus concep ualizes
o ganiza ions no as linea p oduce s o alue bu as me abolic o ganisms main aining
sys emic heal h h ough eedback and egene a ion.
SVEMF applies he p inciple o au opoiesis o alue sys ems. Fi ms and ma ke s a e no
s a ic ne wo ks bu au opoie ic ecologies ha main ain hei exis ence h ough con inuous
egene a ion o alue. Each phase o he amewo k pa icipa es in his sel - enewal. Value
C ea ion gene a es no el y, Value Dis ibu ion sus ains coope a ion, Value Re en ion
p ese es esilience, and Value T ans o ma ion enews meaning and iden i y. Thus, SVEMF
po ays o ganiza ions as au opoie ic o ganisms o alue, capable o e ol ing h ough
in e nal and ex e nal eedback. Value does no me ely ci cula e—i egene a es he e y
sys em ha allows i o exis .
This sys emic pe spec i e u ns s a egic managemen in o an ecological discipline,
conce ned wi h he balance, esilience, and sus ainabili y o alue lows ac oss
in e dependen ac o s.
2.3 S a egic Managemen and Co-C ea ion: F om Compe i i e Ad an age o Sys emic
Ad an age
T adi ional s a egic managemen amewo ks ha e ocused on how i ms c ea e and
cap u e alue ela i e o compe i o s. Michael Po e 's (1980, 1985) wo k on compe i i e
posi ioning and he alue chain es ablished ha i ms gain ad an age h ough a o able
indus y s uc u e and in e nal ac i i y con igu a ion. Jay Ba ney's (1991) esou ce-based
iew a gued ha compe i i e ad an age s ems om aluable, a e, inimi able, and non-

subs i u able esou ces. Da id Teece's (2007) heo y o dynamic capabili ies emphasized
adap abili y h ough sensing, seizing, and ans o ming oppo uni ies.
La e con ibu ions om Hen y Min zbe g (1994) emphasized eme gen s a egy and
lea ning, while C.K. P ahalad and Ga y Hamel (1990) ocused on co e compe encies as
d i e s o s a egic enewal. Mo e ecen ly, C.K. P ahalad and Venka Ramaswamy (2004)
in oduced he concep o alue co-c ea ion, ede ining cus ome s no as passi e ecei e s
bu as ac i e pa icipan s in alue gene a ion.
SVEMF p ese es he analy ical igo o hese adi ions bu eo ien s hei pu pose: he
goal o s a egy is no dominance bu sus ainabili y h ough alue ecology. I expands he
alue logic beyond c ea ion and cap u e o include dis ibu ion, e en ion, ansmission,
and ans o ma ion, u ning s a ic compe i i e models in o dynamic and e hical ones.
SVEMF ex ends he co-c ea ion logic by dissol ing he igid bounda ies be ween p oduce
and consume al oge he . In he Value Ecology, all pa icipan s a e alue ac o s—each
simul aneously c ea ing, exchanging, and ans o ming alue. When a consume
pu chases a p oduc , hey a e no me ely consuming; hey a e ansmi ing p e iously
e ained alue ( om hei labo o sa ings) and ans o ming i in o new expe ien ial o
symbolic alue. Hence, alue co-c ea ion becomes sys emic co-gene a ion: a dis ibu ed
p ocess whe e meaning, u ili y, and sus ainabili y a ise h ough in e ac ion. This p inciple
blu s adi ional economic hie a chies and si ua es s a egy wi hin a ne wo k o ecip ocal
e olu ion.
In SVEMF, sys emic ad an age eplaces compe i i e ad an age—i is he abili y o a i m o
sus ain, enew, and ha monize alue lows ac oss i s ecosys em o ac o s. This shi s he
na a i e o s a egy om con lic o co-e olu ion, om ex ac ion o egene a ion, and om
p o i -maximiza ion o alue cohe ence.
2.4 Phenomenology and Mind ulness: The Inne Ecology o Value
D awing upon Edmund Husse l (1913), Mau ice Me leau-Pon y (1945), Ma in Bube (1923),
and con empo a y enac i e heo is s such as F ancisco Va ela, E an Thompson, and
Eleano Rosch (1991), phenomenology emphasizes ha meaning a ises h ough
in en ional ela ions and li ed expe ience. E e y exchange, in his iew, in ol es no only
ma e ial ans e bu also he mu ual cons i u ion o pe cep ion, in en ion, and awa eness.
Bube 's "I-Thou" ela ion posi s ha au hen ic exchange ea s he o he as subjec , no
objec —es ablishing ecip oci y as an e hical ounda ion.
SVEMF in eg a es his pe spec i e by in oducing Value T ans o ma ion as he inne
dimension o s a egy— he in a-agen p ocess whe eby ex e nal alue becomes in e nal
meaning. This d aws concep ually on he au ho 's ea lie wo k on Awa eness-Fi s
Mind ulness (Ma a, 2024), in which awa eness p ecedes cogni ion and ac ion. Value
ans o ma ion hus ep esen s he momen when ex e nal wo h becomes in e nal
signi icance, linking economic li e o consciousness and pe sonal g ow h.
By embedding phenomenology wi hin s a egy, SVEMF e ames he i m as no me ely a
a ional o economic ac o bu a sen ien sys em capable o awa eness, lea ning, and
e olu ion. I sugges s ha sus ainable s a egy depends as much on inne cla i y and
e hical awa eness as on ma ke posi ioning. The indi idual sus ains i ali y h ough
awa eness, which es o es ocus and in en ion—ac ing as he negen opic coun e o ce o
psychic en opy. This aligns wi h Awa eness-Fi s Mind ulness: awa eness p ecedes
cogni ion and s abilizes he low o alue.
2.5 E hics and Sus ainabili y: The Mo al Ci cula ion o Value
Con empo a y e hical app oaches o business ha e expanded he de ini ion o alue o
include human and en i onmen al well-being. R. Edwa d F eeman's (1984) S akeholde
Theo y a gues ha businesses ha e obliga ions o all s akeholde s, no jus sha eholde s.
John Elking on's (1997) T iple Bo om Line amewo k in oduces he h ee Ps—p o i ,
people, and plane —as equally impo an measu es o success. Ama ya Sen's (1999)
Capabili ies App oach e ames de elopmen as he expansion o human eedoms and
capaci ies a he han me e income g ow h.
SVEMF builds on hese insigh s by embedding e hical sus ainabili y di ec ly wi hin i s
s uc u e. Value Dis ibu ion and Value T ansmission se e as he e hical and empo al
pilla s o he model: dis ibu ion ensu es ai ness wi hin he p esen ecosys em, while
ansmission ensu es con inui y ac oss ime. In his way, SVEMF anscends co po a e
social esponsibili y and in oduces he concep o Value Jus ice— he mo al equi emen
ha alue lows emain egene a i e, inclusi e, and balanced.
The inclusion o Value Dissipa ion e ames sus ainabili y in empo al e ms: e hical decay,
social inequali y, and ecological deple ion a e o ms o mo al en opy— alue leaking om
he sys em due o sho - e mism o neglec . Thus, Value Jus ice becomes no only a social
p inciple bu a sys emic equi emen o su i al.
2.6 The modynamics and O ganiza ional En opy: Value Dissipa ion and Negen opic
Renewal
E e y li ing sys em mus con end wi h en opy— he na u al d i owa d diso de
(Be alan y, 1968; P igogine, 1984). The second law o he modynamics s a es ha closed
sys ems end owa d maximum en opy. Howe e , open sys ems can main ain o inc ease
o de by impo ing ene gy and expo ing en opy. Ilya P igogine's (1984) wo k on dissipa i e
s uc u es showed how sys ems a om equilib ium can sel -o ganize in o highe le els o
complexi y.
SVEMF ex ends his p inciple o o ganiza ional and psychological sys ems h ough he
concep o Value Dissipa ion. Dissipa ion occu s when c ea i e ene gy, human po en ial, o
e hical in en ion a e unde u ilized o igno ed. Jus as physical sys ems equi e ene gy inpu
o main ain o de , business sys ems equi e awa eness and e hical enewal o sus ain
i ali y.
The an ido e o dissipa ion is mind ul egene a ion: lea ning, e lec ion, and
ans o ma ion. This uni es physics, managemen , and phenomenology unde one
concep ual law: Awa eness is he negen opy o alue. Value dissipa ion hus ep esen s
he en opy bounda y o he sys em— he poin whe e eedback, awa eness, o adap abili y
ails. To su i e, o ganiza ions mus cul i a e negen opic p ac ices such as mind ulness,
lea ning, and e hical enewal.
2.7 In eg a i e Pe spec i e: Towa d a Uni ied Theo y o S a egic Value Ecology
By syn hesizing hese di e se adi ions, SVEMF es ablishes an ecological me aphysics o
business—one ha ea s s a egy as he a o sus aining he ci cula low o alue ac oss
bo h ex e nal sys ems and in e nal consciousness. I uni es he quan i a i e logic o
economics wi h he quali a i e dep h o e hics and phenomenology. I also in oduces a
empo al dimension, ecognizing ha alue is always in mo ion: c ea ed in he p esen ,
e ained o he u u e, and ans o med h ough li ed expe ience.
In essence, he amewo k posi ions business as a li ing ecology o in e dependen alue
ac o s, in which e e y ac o exchange is also an ac o ans o ma ion. I p o ides no only
a desc ip i e model o how alue ci cula es bu also a no ma i e o ien a ion—sugges ing
ha he heal h o any business o economy depends on he in eg i y and ai ness o i s
alue ecology.
SVEMF now ep esen s a comple e ecological model o alue. I encompasses bo h he
c ea i e and en opic dimensions o business, in eg a ing economic, e hical, sys emic, and
phenomenological insigh s in o a uni ied amewo k. Value is concei ed as a li ing
con inuum: c ea ed h ough pu pose, ci cula ed h ough exchange, consolida ed h ough
cap u e, sha ed h ough dis ibu ion, p ese ed h ough e en ion, enewed h ough
ansmission, deepened h ough ans o ma ion, and los h ough dissipa ion.
The ask o s a egy, he e o e, is no me ely o c ea e alue bu o sus ain he ecology ha
allows alue o li e. The mind ul leade becomes bo h c ea o and gua dian—cul i a ing
awa eness as he cen al o ce ha esis s dissipa ion and enables enewal.
3. The Eigh Dynamics o he S a egic Value Ecology
SVEMF p oposes ha all o ganiza ional and ma ke ac i i ies e ol e a ound eigh
in e dependen dynamics o alue. These dynamics o m a comple e me abolic cycle ha
can be isualized as a ci cula low, wi h alue c ea ion as he gene a i e sou ce and alue
dissipa ion as he en opic bounda y. Toge he , hey cons i u e he li ing sys em o alue.
3.1 Value C ea ion: The Gene a i e Sou ce
De ini ion: Value C ea ion is he p ocess o b inging some hing o wo h in o exis ence—
ans o ming esou ces, ideas, and capabili ies in o some hing ha enhances li e, wo k, o
expe ience o o he s.
Na u e: Gene a i e and o igina ing. All business ac i i y begins wi h c ea ion—whe he o
p oduc s, se ices, knowledge, o ela ionships.
S a egic Implica ions:
• Inno a ion, empa hy, and pu pose d i e all meaning ul c ea ion
• E e y indi idual and eam should see hei wo k as con ibu ing o alue gene a ion
• C ea ion mus be ele an —i only becomes alue when ecognized by o he s
Key Ques ion: A e we c ea ing some hing ha genuinely imp o es someone's li e o wo k?
Rela ionship o O he Dynamics: C ea ion eeds Exchange (b inging new o e ings o
ma ke ), enables Cap u e (p o iding some hing wo h paying o ), and equi es con inuous
T ans o ma ion (lea ning and enewal) o emain ele an .
3.2 Value Exchange: The Rela ional Dynamic
De ini ion: Value Exchange is he in e ac ion whe e c ea ed alue mee s demand— he
ma ke , cus ome , pa ne , o s akeholde who ecognizes and engages wi h wha has been
c ea ed.
Na u e: Rela ional and ecip ocal. Exchange is he momen when alue mee s ecogni ion,
ans o ming po en ial in o ac ualiza ion.
S a egic Implica ions:
• Exchange measu es ele ance—i no one wan s wha you o e , you' e c ea ed
some hing bu no alue
• Building meaning ul ela ionships and ne wo ks is cen al o sus ainable exchange
Dynamic
Co e Indica o (★ = essen ial)
Desc ip ion / Ra ionale
Lea ning cul u e index
Agg ega es psychological sa e y and
e lec ion p ac ices
Pos -mo em comple ion a e
Measu es o ganiza ional lea ning
discipline
Dissipa ion
★ Idle capaci y (% unused
esou ces)
Measu es alue leakage and
unde u iliza ion
Redundancy index / p ocess
duplica ion
Quan i ies sys emic ine iciency
High-pe o me olun a y
a i ion
Re eals disengagemen and cul u al
en opy
Each indica o is sco ed om 1 (c i ical weakness) o 5 (sys emic s eng h). An o e all SVP
Sco e is compu ed as he mean o all eigh dynamics, while a iance among hem
indica es sys emic imbalance. O ganiza ions wi h high a iance (e.g., s ong in c ea ion bu
weak in cap u e o dis ibu ion) ace sus ainabili y isks despi e appa en s eng hs.
4.2 Da a Sou ces and Reliabili y P o ocols
T iangula ion: Each indica o mus ha e a leas wo con e ging da a sou ces (e.g.,
inancial s a emen s + ope a ional analy ics; HR sys ems + employee su eys).
In e - a e Calib a ion: Two independen assesso s code quali a i e da a; disc epancies
g ea e han 1 poin igge e idence e iew and econcilia ion.
Benchma king: Sco es a e compa ed agains indus y medians (same NAICS code and
egion) and his o ical da a o no maliza ion.
Sensi i i y Analysis: SVP sco es a e es ed agains ailing 3-yea To al Sha eholde Re u n
(TSR) and Re u n on In es ed Capi al (ROIC) o examine p edic i e alidi y.
Audi P ocess:
1. Collec quan i a i e me ics om inancial, ope a ional, and HR sys ems
2. Conduc s akeholde in e iews (employees, cus ome s, supplie s, pa ne s)
3. Re iew go e nance documen s, s a egy ma e ials, and cul u e a i ac s
4. Sco e each dynamic independen ly by wo analys s

5. Reconcile disc epancies h ough e idence discussion
6. Gene a e SVP ada cha and hea map
7. Iden i y in e en ion p io i ies based on weakes dynamics and imbalances
4.3 Empi ical Basis and Case Selec ion
To illus a e SVEMF's diagnos ic po en ial, h ee mini-cases we e selec ed om well-
documen ed co po a e his o ies ep esen ing con as ing ou comes:
1. HP-Au onomy (2011-2012) – M&A ailu e and alue dissipa ion
2. Disney-Pixa (2006) – M&A success and egene a i e in eg a ion
3. LEGO (2003-2008) – O ganiza ional u na ound and enewal
Cases we e analyzed using a chi al sou ces including Ha a d Business School cases,
Ha a d Business Re iew a icles, inancial p ess co e age, egula o y ilings, and
academic commen a y. Each case was sco ed ac oss he eigh SVEMF dynamics a wo
empo al poin s (p e- and pos -e en ) o illus a e sys emic change pa e ns.
5. Mini-Case Illus a ions
5.1 HP-Au onomy: A Case o Value Dissipa ion in M&A
Con ex : In Augus 2011, Hewle -Packa d acqui ed B i ish so wa e i m Au onomy
Co po a ion o app oxima ely $11 billion, ep esen ing HP's la ges -e e so wa e
acquisi ion. The deal aimed o accele a e HP's s a egic shi om ha dwa e owa d high-
ma gin en e p ise so wa e and cloud se ices. Au onomy specialized in uns uc u ed da a
analysis and en e p ise sea ch so wa e wi h claimed e enues o $870 million.
Wi hin a yea , HP announced an $8.8 billion w i e-down, alleging se ious accoun ing
i egula i ies and mis ep esen a ions by Au onomy's managemen . This igge ed
p o ac ed li iga ion spanning bo h UK and US ju isdic ions. In 2022, a UK High Cou uled
la gely in a o o HP, inding ha Au onomy's o me CEO and CFO had engaged in
audulen p ac ices including imp ope e enue ecogni ion, undisclosed sales o
eselle s, and mischa ac e iza ion o ha dwa e sales as so wa e e enue.
SVEMF Analysis:
Dynamic
P e-Deal
(Au onomy)
Pos -Deal
(Combined)
Obse a ions
C ea ion
4
2
C ea i e R&D base unde cu by cul u al
clash and in eg a ion ailu e
Exchange
2
1
Weak cus ome anspa ency; con ac s
e ealed poo quali y and unsus ainable
ela ionships
Cap u e
3
2
Re enue quali y se e ely o e es ima ed;
ac ual p icing powe much weake han
claimed
Dis ibu ion
3
2
T us b eakdown ac oss combined
o ganiza ion; execu i e u no e and
demo aliza ion
Re en ion
3
2
Massi e knowledge loss pos -acquisi ion
as key alen depa ed
T ansmission
2
1
Comple e in eg a ion ailu e; inabili y o
ansmi knowledge o cul u e ac oss
o ganiza ions
T ans o ma ion
2
2
No o ganiza ional lea ning om ea ly
wa ning signals; epea ed de ensi e
pos u es
Dissipa ion
4
5
Ca as ophic loss o inancial capi al
($8.8B), human capi al, epu a ional
capi al, and s a egic momen um
In e p e a ion: HP-Au onomy exempli ies sys emic dissipa ion d i en by mul iple ailu es.
The deal su e ed om weak Exchange due diligence—HP ailed o e i y cus ome
ela ionship quali y, con ac e ms, and e enue sus ainabili y. Exchange indica o s
(cus ome concen a ion, enewal a es, con ac economics) would ha e e ealed agili y.
The T ansmission dynamic was igno ed en i ely; no se ious in eg a ion planning exis ed,
and cul u al compa ibili y was assumed a he han e i ied.
Mos c i ically, HP's due diligence ocused almos exclusi ely on Cap u e ( epo ed
inancials) wi hou alida ing he unde lying Exchange and C ea ion dynamics. Fo ensic
analysis la e e ealed ha much o Au onomy's e enue came om ha dwa e sales
imp ope ly classi ied as so wa e, and om ci cula ansac ions wi h eselle s ha in la ed
appa en demand.
SVEMF Implica ions: A p e-deal SVEMF audi would ha e lagged high Dissipa ion Risk
and Exchange ins abili y h ough cus ome coho analysis e ealing concen a ion and
chu n, e enue quali y assessmen dis inguishing sus ainable so wa e licenses om
ha dwa e pass- h ough, T ansmission and Dis ibu ion assessmen iden i ying in eg a ion
isks and cul u al misalignmen , and C ea ion e alua ion sepa a ing ac ual R&D
p oduc i i y om acquisi ion-d i en g ow h.
The HP-Au onomy case demons a es ha inancial me ics alone p o ide an insu icien
basis o M&A alua ion. Sys emic heal h equi es assessmen ac oss all eigh alue
dynamics.
5.2 Disney-Pixa : Regene a i e Value T ansmission
Con ex : When Wal Disney Company acqui ed Pixa Anima ion S udios in 2006 o $7.4
billion, Disney's anima ion di ision aced c ea i e s agna ion. Despi e i s s o ied his o y,
Disney had p oduced a se ies o unde pe o ming ilms while Pixa had deli e ed
consecu i e c ea i e and comme cial successes. The acquisi ion isked des oying Pixa 's
c ea i e cul u e—a common ou come when la ge co po a ions abso b inno a i e bou ique
s udios.
Howe e , Disney's app oach p o ed excep ional. Ra he han imposing co po a e
s uc u e, Disney p ese ed Pixa 's c ea i e au onomy while enabling c oss-pollina ion. Ed
Ca mull and John Lasse e we e gi en leade ship o e bo h Disney and Pixa anima ion,
and hey implemen ed go e nance mechanisms p o ec ing a is ic in eg i y. The esul was
c ea i e enewal o Disney anima ion and sus ained excellence o Pixa .
SVEMF Analysis:
Dynamic
P e-Deal
(Disney)
Pos -Deal
(Combined)
Obse a ions
C ea ion
3
5
Pixa 's inno a ion p ac ices e i alized
Disney; sha ed "B ain us " eedback
cul u e
Dynamic
P e-Deal
(Disney)
Pos -Deal
(Combined)
Obse a ions
Exchange
3
5
Enhanced audience us ; expanded
c ea i e ne wo ks; complemen a y
dis ibu ion s eng hs
Cap u e
3
4
Imp o ed box-o ice ma gins,
me chandising e enue, heme pa k
in eg a ion, b and alue
Dis ibu ion
4
5
Equi able c ea i e c edi ; au onomy
p ese ed; sha ed esou ces wi hou
hie a chy
Re en ion
4
4
Bo h o ganiza ions' ins i u ional knowledge
p ese ed and p o ec ed
T ansmission
3
5
Sys ema ic bes -p ac ice exchange; c oss-
s udio alen mobili y; cul u al di usion
T ans o ma ion
3
4
O ganiza ional lea ning embedded in new
s uc u es; c ea i e enewal h ough
collabo a ion
Dissipa ion
3
1
Minimal alue leakage; s ong negen opic
go e nance p o ec ing c ea i e i ali y
In e p e a ion: Disney-Pixa ep esen s success ul alue egene a ion h ough conscious
a en ion o T ansmission and Dis ibu ion. The me ge succeeded by p o ec ing
Dis ibu ion equi y (Pixa e ained c ea i e au onomy and ecei ed ai ecogni ion),
enabling T ansmission (sys ema ic knowledge sha ing h ough join p oduc ion e iews,
sha ed echnology pla o ms, and alen exchange p og ams), main aining C ea ion
in eg i y ( he "B ain us " pee - eedback cul u e was p ese ed and ex ended), and
balancing Cap u e wi h ecosys em heal h ( inancial in eg a ion suppo ed a he han
cons ained c ea i e p ocesses).
Ed Ca mull's leade ship embodied awa eness- i s p inciples: ecognizing ha Pixa 's
alue esided no in asse s bu in c ea i e p ac ices and cul u al no ms. The go e nance
s uc u e explici ly p e en ed Dissipa ion by es ablishing bounda ies agains co po a e
in e e ence while enabling bene icial exchange.
SVEMF Implica ions: The Disney-Pixa in eg a ion alida es SVEMF's p emise ha
awa eness and e hical design can sus ain alue ecology ac oss o ganiza ional bounda ies.
The case demons a es ha Dis ibu ion ai ness is no al uism bu s a egic necessi y o
mo i a ion and e en ion, T ansmission mechanisms mus be explici ly designed and
p o ec ed, Cap u e can inc ease when o he dynamics emain heal hy, and conscious
leade ship p e en s Dissipa ion h ough s uc u al sa egua ds.
In eg a ion planning based on SVEMF would codi y "non-nego iables" o
Dis ibu ion/T ansmission in me ge ag eemen s, ea ing cul u al and c ea i e dynamics
as p ima y a he han seconda y conce ns.
5.3 LEGO: Sel -Regene a i e Tu na ound
Con ex : By 2003, LEGO aced nea -bank up cy. The Danish oymake had expanded
ecklessly in o heme pa ks, ideo games, clo hing, and jewel y while losing ocus on i s
co e b ick-based cons uc ion oys. Re enue was la , deb was ising, and he company
aced po en ial insol ency. Indus y obse e s ques ioned whe he adi ional cons uc ion
oys could su i e in an inc easingly digi al en e ainmen landscape.
New CEO Jø gen Vig Knuds o p, appoin ed in 2004, led a sys ema ic u na ound ocused on
edisco e ing LEGO's co e alue p oposi ion: c ea i e play h ough modula building
sys ems. The s a egy in ol ed p uning unp o i able p oduc lines, s eamlining ope a ions,
engaging he adul an communi y, and de eloping licensed in ellec ual p ope y
pa ne ships (S a Wa s, Ha y Po e , e c.) ha ein o ced a he han dilu ed he b and.
SVEMF Analysis:
Dynamic
2003
(C isis)
2008
(Renewal)
Obse a ions
C ea ion
3
5
Re ocused inno a ion on co e p oduc DNA;
sys ema ic design p ocess
Exchange
3
5
Le e aged an communi y h ough LEGO Ideas
pla o m; licensed pa ne ships expanded each
Cap u e
2
4
Imp o ed p icing discipline, po olio mix, supply
chain e iciency
Dis ibu ion
3
4
Re i ed employee us h ough anspa en
u na ound; es o ed supplie ela ionships

Dynamic
2003
(C isis)
2008
(Renewal)
Obse a ions
Re en ion
2
4
Financial s abiliza ion; ebuil ese es;
s eng hened IP po olio
T ansmission
2
4
Ins i u ionalized design lessons; knowledge
managemen sys ems
T ans o ma ion
2
5
Deep cul u al enewal a ound c ea i i y, igo ,
and cus ome co-c ea ion
Dissipa ion
5
2
Sha p educ ion o was e ul p ojec s; ocused
alloca ion o esou ces
In e p e a ion: LEGO's u na ound exempli ies he negen opic unc ion o awa eness—
leade ship insigh in o sys emic dissipa ion enabled s a egic enewal. The ans o ma ion
ollowed SVEMF p inciples h ough iden i ying Dissipa ion (hones assessmen o alue
leakage; mos di e si ica ion ini ia i es des oyed alue), p uning Dissipa ion
(sys ema ically elimina ed dissipa i e ac i i ies), e- ocusing C ea ion (inno a ion
edi ec ed o co e pla o m), s eng hening Exchange ( ecognized unique alue p oposi ion
emained ele an ), ebalancing Dis ibu ion and Re en ion (cos educ ion balanced wi h
in es men in people), and enabling T ans o ma ion ( u na ound embedded o ganiza ional
lea ning).
SVEMF Implica ions: LEGO demons a es ha u na ound is no me ely inancial
es uc u ing bu ecological healing. The sequence ma e s: Awa eness (hones diagnosis
o dissipa ion), P uning (elimina e en opy-gene a ing ac i i ies), Re- ocusing (concen a e
on co e alue-c ea ion dynamics), Rebalancing (ensu e ai dis ibu ion sus ains
mo i a ion), and Lea ning (ins i u ionalize ans o ma ion o p e en ecu ence).
An SVEMF-based u na ound amewo k would p io i ize dissipa ion mapping be o e cos -
cu ing, ensu ing ha educ ion a ge s en opy a he han i ali y.
5.4 Syn hesis Ac oss Cases
The h ee cases demons a e SVEMF's diagnos ic powe ac oss di e en o ganiza ional
con ex s. HP-Au onomy shows wha happens when Exchange and T ansmission a e
igno ed, leading o ca as ophic Dissipa ion despi e appa en inancial logic. Disney-Pixa
demons a es how conscious a en ion o Dis ibu ion and T ansmission can egene a e
alue ac oss me ged o ganiza ions. LEGO illus a es sel -healing h ough awa eness-d i en
iden i ica ion and elimina ion o Dissipa ion, ollowed by e ocusing on co e alue
dynamics.
Toge he , hese cases alida e SVEMF's co e p oposi ions: o ganiza ions a e li ing sys ems
equi ing balance ac oss all eigh dynamics, inancial me ics alone p o ide insu icien
assessmen o sys emic heal h, awa eness (conscious diagnosis o alue lows) is he
negen opic p inciple enabling enewal, and s a egy is he a o sus aining alue ecology,
no me ely op imizing ansac ions.
6. Manage ial and P ac ical Applica ions
SVEMF ope a ionalizes he philosophy o business as a li ing sys em o alue. By
ansla ing i s eigh dynamics in o diagnos ic and decision ins umen s, SVEMF becomes a
s a egic compass o aluing, managing, and egene a ing o ganiza ions ac oss all li e-
cycle s ages.
6.1 Co po a e Valua ion and Me ge s & Acquisi ions
T adi ional alua ion echniques ocus na owly on cap u ed inancial alue, o e looking
sys emic i ali y. SVEMF p oposes mul idimensional app aisal whe e each o he eigh
dynamics becomes a alua ion lens. A S a egic Value P o ile can be p oduced by a ing
each dimension on a 1-5 scale, e ealing hidden po en ial o en opy h ough acquisi ion
sc eening (iden i ying unde alued a ge s wi h s ong C ea ion o T ans o ma ion po en ial
bu weak Cap u e), in eg a ion planning (p edic ing pos -me ge " alue ic ion zones"), and
sus ainabili y assessmen (dis inguishing endu ing i ali y om sho - e m p o i abili y).
SVEMF hus e ames alua ion as i ali y assessmen , complemen ing inancial me ics
wi h sys emic diagnos ics.
6.2 O ganiza ional Diagnosis and Renewal
O ganiza ions a ely ail o lack o da a; hey ail o lack o sys emic awa eness. SVEMF
se es as a diagnos ic dashboa d highligh ing whe e alue accumula es, ci cula es, o
leaks h ough a Value Ecology Audi —a quali a i e-quan i a i e e iew asking eigh guiding
ques ions abou c ea ion, exchange, cap u e, dis ibu ion, e en ion, ansmission,
ans o ma ion, and dissipa ion.
Responses gene a e a Value Ecology Map showing imbalances. Managemen can hen
a ge in e en ions o s eng hen Cap u e h ough be e business model design, es o e
Dis ibu ion ai ness o ebuild us , educe Dissipa ion by e i ing do man capabili ies, o
enhance T ansmission h ough knowledge managemen .
6.3 Tu na ound and Decline Managemen
In declining i ms, Value Dissipa ion usually p ecedes inancial c isis. SVEMF ea s
u na ound as sys emic healing h ough an awa eness phase (conduc ing Value Ecology
Audi o map dissipa ion zones), iage (dis inguishing alue-gene a ing om alue-
dissipa ing ac i i ies), e-c ea ion ( eigni ing C ea ion and T ans o ma ion), ebalancing
( es o ing Dis ibu ion ai ness), and e en ion- ansmission phases ( ebuilding ese es
and s eng hening knowledge ans e ).
This p ocess con e s u na ound om su i al mode o egene a i e healing, es o ing
negen opy h ough awa eness and e hical ealignmen .
6.4 G ow h and Inno a ion S a egy
Con en ional g ow h s a egies ocus on scaling ou pu s; SVEMF ocuses on scaling i ali y.
By moni o ing all eigh dynamics, s a egis s can iden i y g ow h engines (s ong C ea ion +
Exchange), ein o ce in as uc u e (build Re en ion ese es and T ansmission sys ems),
main ain cul u e (use T ans o ma ion p ac ices o e esh pu pose), and de ec en opy
ea ly (moni o Dissipa ion indica o s).
This p oduces egene a i e g ow h—expansion ha s eng hens he sys em a he han
exhaus ing i .
6.5 Leade ship, Go e nance, and Cul u al Alignmen
Leade s and boa ds can adop SVEMF as a go e nance compass o s a egic isioning
(ensu ing balance among all eigh alue lows), decision e iew (e alua ing ini ia i es'
impac on dynamics), cul u al s ewa dship (main aining e hical Dis ibu ion and enewal o
meaning), succession planning (secu ing T ansmission and T ans o ma ion o ins i u ional
knowledge), pe o mance assessmen (e alua ing leade s as " alue ecologis s"), and isk
managemen (moni o ing Dissipa ion indica o s as leading signals).
E ec i e leade s become alue ecologis s—designe s o condi ions unde which alue can
ci cula e eely, ans o m meaning ully, and egene a e con inuously wi hou dissipa ing.
6.6 Educa ion and Capabili y Building
In execu i e educa ion, SVEMF unc ions as bo h amewo k and mind ulness pedagogy,
aining leade s o pe cei e alue ecologies a he han unc ional silos h ough sys ems
hinking (eigh dynamics and in e dependencies), e hical easoning (Dis ibu ion and
T ansmission impe a i es), sel -awa eness (obse a ion o pe sonal and o ganiza ional
Dissipa ion), diagnos ic capabili y (Value Ecology Audi p ac ice), and s a egic design
(balancing and op imizing alue lows).
Pa icipan s lea n o lead o ganiza ions as egene a i e sys ems a he han ex ac i e
machines—cul i a ing awa eness as he p ima y leade ship capaci y.
6.7 Summa y: The Manage ial Powe o SVEMF
In he age o complexi y, he i m's ue wo h lies no in wha i owns bu in how alue li es
and enews wi hin i . SVEMF enables manage s, in es o s, and educa o s o see, measu e,
and guide ha li ing p ocess h ough diagnosis (mapping s eng hs and imbalances),
alua ion ( e ealing hidden alue and en opy zones), egene a ion ( e e sing decline
h ough awa eness), scaling (p omo ing alue egene a ion and i ali y), and go e nance
(posi ioning leade s as cus odians o he alue ecology).
7. Le els and Agen s o he Value Ecology
The S a egic Value Ecology Model and F amewo k ope a es ac oss all scales o in elligen
ac i i y. I s eigh dynamics desc ibe how alue ci cula es, ans o ms, and decays
ega dless o he size o composi ion o he agen in ol ed. The amewo k is he e o e
scale-in a ian and agen -agnos ic, applicable whe e e pu pose ul in e ac ion occu s.
7.1 The Indi idual: The Mic o-Le el Ecology
A he indi idual le el, SVEMF explains he pe sonal me abolism o alue. He e, alue
c ea ion co esponds o insigh , inno a ion, and pu pose ul ac ion; alue exchange occu s
in communica ion and ela ionships; alue ans o ma ion e lec s g ow h and lea ning;
and dissipa ion mani es s as a igue, dis ac ion, o loss o meaning. The indi idual
sus ains i ali y h ough awa eness, which es o es ocus and in en ion—ac ing as he
negen opic coun e o ce o psychic en opy.
7.2 The Team and O ganiza ion: The Meso-Le el Ecology
Wi hin o ganiza ions, SVEMF becomes a diagnos ic and manage ial sys em. Depa men s
and eams unc ion as subsys ems wi hin a la ge alue me abolism. C ea ion appea s as
inno a ion and p oduc de elopmen ; exchange as c oss- unc ional collabo a ion o
ma ke in e ac ion; e en ion as inancial, human, and in ellec ual capi al; and dissipa ion
as bu eauc a ic ine ia o disengagemen . O ganiza ional leade s ac as alue ecologis s:
main aining balance among dynamics, encou aging ans o ma ion, and minimizing
en opy.
7.3 The Ecosys em and Socie y: The Mac o-Le el Ecology
A he in e -o ganiza ional o socie al le el, SVEMF desc ibes he low o alue ac oss
ma ke s, ins i u ions, and cul u es. Value c ea ion in ol es collec i e inno a ion;
Min zbe g, H. (1994). The Rise and Fall o S a egic Planning. New Yo k: F ee P ess.
Po e , M. E. (1980). Compe i i e S a egy: Techniques o Analyzing Indus ies and
Compe i o s. New Yo k: F ee P ess.
Po e , M. E. (1985). Compe i i e Ad an age: C ea ing and Sus aining Supe io
Pe o mance. New Yo k: F ee P ess.
P ahalad, C. K., & Hamel, G. (1990). The co e compe ence o he co po a ion. Ha a d
Business Re iew, 68(3), 79-91.
P ahalad, C. K., & Ramaswamy, V. (2004). The Fu u e o Compe i ion: Co-C ea ing Unique
Value wi h Cus ome s. Bos on: Ha a d Business School P ess.
P igogine, I. (1984). O de Ou o Chaos: Man's New Dialogue wi h Na u e. New Yo k:
Ban am Books.
Robe son, D. C., & B een, B. (2013). B ick by B ick: How LEGO Rew o e he Rules o
Inno a ion and Conque ed he Global Toy Indus y. New Yo k: C own Business.
Schele , M. (1913/1973). Fo malism in E hics and Non-Fo mal E hics o Values (M. S. F ings
& R. L. Funk, T ans.). E ans on: No hwes e n Uni e si y P ess.
Sen, A. (1999). De elopmen as F eedom. New Yo k: Al ed A. Knop .
Smi h, A. (1776/1976). An Inqui y in o he Na u e and Causes o he Weal h o Na ions.
Ox o d: Cla endon P ess.
Teece, D. J. (2007). Explica ing dynamic capabili ies: The na u e and mic o ounda ions o
(sus ainable) en e p ise pe o mance. S a egic Managemen Jou nal, 28(13), 1319-1350.
Va go, S. L., & Lusch, R. F. (2004). E ol ing o a new dominan logic o ma ke ing. Jou nal o
Ma ke ing, 68(1), 1-17.
Va ela, F. J., Thompson, E., & Rosch, E. (1991). The Embodied Mind: Cogni i e Science and
Human Expe ience. Camb idge, MA: MIT P ess.
Appendix A: S a egic Value P o ile (SVP) Assessmen Templa e
Ins uc ions o Conduc ing a Value Ecology Audi
P epa a ion:
1. Assemble c oss- unc ional assessmen eam (6-10 membe s)

2. Ga he da a: 3 yea s o inancial s a emen s, HR analy ics, cus ome da a,
ope a ional me ics
3. Schedule s akeholde in e iews: employees, cus ome s, supplie s, pa ne s
4. Re iew s a egy documen s, cul u e a i ac s, go e nance ma e ials
Assessmen P ocess:
1. Fo each dynamic, e iew indica o s and e idence
2. Two assesso s independen ly sco e 1-5 (1=c i ical weakness, 5=sys emic s eng h)
3. Discuss disc epancies and econcile h ough e idence
4. Documen a ionale o each sco e
5. Gene a e SVP ada cha and hea map
6. Iden i y op 3 in e en ion p io i ies
Sco ing Guidelines:
• 1 - C i ical Weakness: Dynamic is ailing; immedia e in e en ion equi ed
• 2 - Signi ican Gap: Dynamic is weak; imp o emen needed wi hin 12 mon hs
• 3 - Adequa e: Dynamic unc ions adequa ely bu wi h oom o imp o emen
• 4 - S ong: Dynamic pe o ms well; compe i i e s eng h
• 5 - Sys emic Excellence: Dynamic is exempla y; sou ce o egene a i e ad an age
Appendix B: SVEMF Applica ion Guide o M&A Due Diligence
Phase 1: P e-Deal Sc eening (S a egic Value P o ile)
Objec i e: Rapidly assess a ge 's sys emic heal h beyond inancials
P ocess:
1. Reques 3 yea s o inancial da a, o ganiza ional cha s, cus ome analy ics
2. Conduc p elimina y assessmen using publicly a ailable in o ma ion
3. Sco e a ge ac oss 8 dynamics using co e indica o s
4. Gene a e ini ial SVP ada cha
5. Iden i y ed lags equi ing deep di e
6. De e mine whe he o p oceed o de ailed due diligence
Phase 2: Deep Due Diligence (Value Ecology Audi )
Objec i e: Comp ehensi e sys emic assessmen wi h in eg a ion planning Timeline: 6-8
weeks
Deli e ables:
1. Comp ehensi e SVP wi h 8-dynamic sco es
2. Risk egis e by dynamic
3. Value c ea ion oppo uni ies map
4. In eg a ion complexi y assessmen
5. Pos -close ac ion plan ( i s 100 days)
Appendix C: Glossa y o Key Te ms
Au opoiesis: Sel -p oduc ion; he p ope y o li ing sys ems ha con inuously egene a e
hemsel es h ough hei own ope a ions.
Awa eness: Conscious a en ion and pe cep ion ha p ecedes cogni ion and enables
in en ional ac ion; in SVEMF, he negen opic o ce ha coun e s dissipa ion.
Negen opy: Nega i e en opy; he o de ing o ce ha coun e s sys emic decay and
diso de .
S a egic Value P o ile (SVP): An assessmen ins umen measu ing an o ganiza ion's
heal h ac oss SVEMF's eigh dynamics.
Sys emic Ad an age: The capaci y o sus ain and enew alue lows ac oss an ecosys em
o ac o s.
Value Ac o : Any en i y ha pa icipa es in alue c ea ion, exchange, and ans o ma ion.
Value Cap u e: The momen when an o ganiza ion secu es a po ion o exchanged alue.
Value C ea ion: The gene a i e p ocess o b inging some hing o wo h in o exis ence.
Value Dissipa ion: The loss, leakage, o unde u iliza ion o po en ial alue h ough
unawa eness.
Value Dis ibu ion: The e hical sha ing o cap u ed alue among all con ibu o s.
Value Ecology: The li ing sys em o in e dependen alue lows and ans o ma ions.
Value Exchange: The ela ional in e ac ion whe e c ea ed alue mee s ecogni ion.
Value Jus ice: The mo al p inciple ha alue lows mus emain egene a i e and
balanced.
Value Re en ion: The p ese a ion o cap u ed alue o esilience and u u e c ea ion.
Value T ans o ma ion: The in a-agen p ocess whe eby ex e nal alue becomes in e nal
meaning.
Value T ansmission: The passing o e ained alue ac oss ime and o ganiza ional
bounda ies.
End o Manusc ip
Wo d Coun : App oxima ely 25,000 wo ds
Au ho Con ac : Da id Ma a
Ame ican Uni e si y o Bei u
[email protected]
Ve sion: 1.0
Da e: Oc obe 2025