“Don’t waste a good crisis” – not entirely sure who first uttered these immortal words, although a Google search on initial analysis seems to attribute it (or some very similar words) to Rahm Emmanuel, the current Chief of Staff of the White House, part of the Barack Obama administration. The actual phrase might be attributed … Continue reading Collaborative nano and micro business ventures
Chance and spontaneity are two interesting phenomenon required for innovation and creativity. We were reminded of this in an interview recorded of a LinkedIn executive recently*. He stated that chance encounters are "where we make some of our most significant connections", be it your life partner, business associates, etc. and that speeding up those chance … Continue reading Random Collisions of Chance
Introduction Cost cutting has been a priority in the private sector, ever since the financial credit quake started in 2008, yet the words currently are ‘austerity measures’ and budget cuts in the public sector. Most of the cost cutting in organisations has been along the tactical and operational lines and we believe that in the … Continue reading Risk-Based Change Management
A few weeks ago we published what seems like our most popular blog article to date, namely Increased Friction Costs. As it has been our most read article, we thought we might continue to build on the theme of Economic Friction Cost. Williamson (1993) published some work on Transaction Cost Economics (TCE) in a book … Continue reading Continuing conversations in Friction Costs: Increased Friction Costs II
Risk has as one of its essential elements TRUST as a foundation. Trust on the other hand has many other factors that interplay and interact on it. Markets are created when there are needs that are not immediately met from you local environment and therefore scarcity exists. Market participants step in to fill this 'needs' … Continue reading Risk Management Ideas
Conspiracy theories! Today we express an opinion on the phenomenon of ‘governmental’ economic landscape shaping. Interference whether actively pursued or via involuntary actions promotes our heightened sense of concern by the effects that the aggregation of supply and therefore the encouragement, either directly or indirectly of oligopolistic and monopolistic market structures, is having on the … Continue reading An Aggregated Challenge
Today's post is a very short and concise post, yet these are some inspirational quotes and extracts from two chapter's of Charles Handy's 1997 book entitled: "The Hungry Spirit": A Life of our own Capitalism, efficiency and markets have their flaws, but also their uses. They are neither the complete answer to our dilemmas … Continue reading The Hungry Spirit
We link today’s article to one of our main themes on our home page, namely the ‘Battle against the Status Quo’, or as per the title of this posting, ‘The Morass of Mediocrity’. The underlying intent and theme is that of competition and competitive behaviours and the difference between rules based and principles based … Continue reading The Morass of Mediocrity
Commentary on the new powers and tools of the Bank of England as announced by George Osborne during his first Mansion House address
Reputation Risk and damage mitigation must be some of the watch words and the top priorities at BP at the moment. So how are they faring in the management this agenda item? What ‘price’ or cost must we attach to a ‘licence to operate’? It is interesting to observe behaviours of Chief Executives under the … Continue reading The Cost of a ‘Licence to Operate’
The focus on sustainability and sustainable practices is a self defeating objective. Sustainability means that business leaders take their eye off the equity holder’s value creation ideal, as it flies in the face of self-interest as promoted by Adam Smith some 234 years ago (The Wealth of Nations , 1776). Self-interest and the pursuit therefore is being … Continue reading Sustainability I
Competition has to be guided, controlled and focussed. How do we manage this process and in addition attract talent to sustain organisations deep into the 21st Century?
If ‘the Law’ is the codification of cultural norms and practices, does the Law then not inform culture? Policy, social malice and engineering of social outcomes bend these laws into legislative blunt instruments designed to enforce cultural behavioural changes on a grand scale, trouncing the common law of good judgment, neighbourly relations and common sense … Continue reading Does Law inform or enforce culture?
The CBI published a report entitled "The shape of business - the next ten years" in late 2009. The authors identified 5 key drivers affecting the business environment, namely: 1. Changing finance and capital conditions, 2. The decline of trust in business and markets, 3. A less benign macroeconomic environment, 4. Social and … Continue reading The Sustainability Gene
There has again been a short period of drift and volatility in 'The Markets' recently. And yet again we have heard the old refrain: "Markets hate uncertainty". This we assert is yet again a misused turn of phrase. It is not uncertainty that markets hate, because inherent within market processes and market operations is the … Continue reading The Markets do not need certainty
We had some very rewarding conversations recently with business partners and peers regarding the Value of Synthesis versus Analysis. Synthesis we believe to be a ‘higher level’ skill and experience set than traditional analysis. Synthesis requires a natural ‘incubation period’. Very few people are natural ‘synthesists’. You grow and mature into a ‘natural Synthisist’. Analysts … Continue reading The Value of the Synthesist (as opposed to the Analyst)
Competitive versus Comparative advantage. What is the difference? Comparative advantage is attributed to David Ricardo and is an economic law which states that a market actor (individual, firm, region or country) has the ability to produce goods and services at a lower opportunity cost than another actor or market participant. This is a relative term as even if a market … Continue reading Where is our competitive advantage?