I was introduced to Lorenzo by Richard Thorns, a long-time OD participant who lives in a small village in Dartmoor, England.  Richard attended a recent presentation by Lorenzo and saw the connection of his "GDP" efforts as an ideal topic for an OD conference call.   In speaking with Lorenzo, I was reminded of Dr. Deming's admonition that "anyone could accomplish anything, if you don't count the cost."  Whether running a company or a nation, great dangers might well follow from the unintended consequences of focusing on one number.   Think, for example, of a health club that focuses on increasing membership without increasing the capacity of the club with additional equipment.  Or, the impact of increasing market share of a product without planning for the impact of increased sales and, therefore, increased use of a supplier base.  Team work demands synchronicity and a focus on one number, from GDP to market share to stock price, will likely bring unintended consequences.   Lorenzo's research into GDP offers a reminder of the value proposition offered by Dr. Deming's System of Profound Knowledge.   Visit the Deming Institute's (new look) web site at www.deming.org for a reminder of the Dr. Deming means by Profound Knowledge.In his Thought Piece, a 33-page excerpt from his book (Gross Domestic Problem), Lorenzo opens with these thoughts,    

There is no doubt that the gross domestic product (GDP) is the best-known 'number' in the contemporary world and an extremely powerful political tool. Over the course of the past century, it has dominated not only in capitalist countries but also in socialist societies. And, during the Cold War, the GDP competition epitomized the profound rivalry between the two 'blocs' just as much as the arms race. In spite of its apparent neutrality, GDP has come to represent a model of society, thereby influencing not only economic, but also political and cultural processes. Nowadays, GDP drives macro-economic governmental policies and sets priorities in the social fields. For instance, according to the Stability and Growth Pact of the European Union, the amount of funding that governments can devote to public goods such as schooling and healthcare is generally 'tied' to GDP growth, resulting in a straightforward albeit macabre equation: less GDP, less social investment. And in the age of economic stagnation, this means austerity and social tensions throughout Europe. Moral principles such as equity, social justice and redistribution are subjected to GDP calculations and are only taken up by policy makers if they comply with the GDP-led development model. 

He adds,