Chapter 2: Values, Beliefs, and Conceptualization of Costs

The SEAM conceptualization of visible and hidden costs is based on a set of values and beliefs that is different than the values and beliefs that underlie traditional accounting measures. As Henri Savall outlined in his presentation, there are three key tenets of SEAM. Number one, human potential is the sole active factor in creating added value. Second, technical and financial capital are inert inner tools. Three, capital and labor are complementary sources of value, as opposed to interchangeable sources of value. These three tenets of SEAM are quite profound because they re-conceptualize and expand prevailing definitions of costs. The expanded view of costs can inspire new perspectives on organization performance and change. For organization development practitioners, it is also important to consider that values and beliefs about costs are important factors that may affect the organization change process, and even the perception of business leaders about the relative success of organizational interventions.