In order to redress the balance of negative sentiment, combined with a political(ly) charged environment with electioneering by all major political UK parties posturing new populist policies (say that fast a few times); we thought it a good idea to put a little perspective on the matter of #Tax avoidance (tax planning we prefer to call it). Remember this is #Election2015 coming up on 7 May 2015.
We are picking up on a theme we have been experiencing and confirmed by this HBR article published in 2012:
Job and Career seeker’s unfulfilled EXPECTATIONS
The word expectation has several meanings, amongst them words like hope, belief, prospect and even probability. It is interesting that if you were to consider these four other words it is almost a continuum, stretching from the vague hope frontier and uncertainty right through to probability which is calculus driven and at least more certain statistically then mere hope…
However, the real focus of our analysis today is the mis-sold or rather mis-aligned expectations gap.
Factors driving the Expectation Gap in our opinion include:
- Disruptive Technologies versus Organisational Structure and Strategies
- A lack of understanding and appreciating decision-based risk
- Improvisation parallax
We will begin to unpick each one of these factors or drivers (reasons why) in a multi-part series of articles to see how, why and if we can help ‘plug the Expectations Gap’.
Today we will begin to briefly cover the top item on our list:
Disruptive Technologies versus Organisational Structure and Strategies
Agile and Adaptive seem to be the new buzzwords in the corporate planning landscape and lexicon. But how do we change entrenched processes and ways of working to align to an agile and adaptive mindset?
Let us turn to certain inhibitors first. Processes like preferred supplier lists, supply chain or other framework procurement agreements, Service Level Agreements and other longer-term contractual arrangement all help create the illusion of certainty and stability; yet are they? Sometimes this flies in the face of agile and adaptive planning and operational processes.
Maybe the gap exists between a process reality and a mindset aspiration. Flexible organisational structures, including resource pools like labour still have a long way to “move” in order to create the conditions in which agile planning and aligned to adaptive process realities.
How are our own personal aspirations and understanding of the current market aligned to the Shamrock Organisation mindset?
- Is Your Company Ready for an Agile Process? (slalom.com)
Reflections on marketing
What is marketing all about? How often do we ponder this question and enter into a circular debate abut the analysis part, the tactical bits, the execution or the philosophy and strategy behind it?
But is this all there is to it?
Once you have created the context and back drop to the ‘what marketing is supposed to do’ element, what is is all about in the end?
We’ll briefly lay out an argument supporting the fact that we believe marketing exists within a context of ‘noise’ all around us and that the skilled artisans of the marketing world are the masters of translation. Translating the disparate voices, messages and content into a language the target audience can understand and make sense of.
Of course this is only a small facet of the entire marketing delivery platform, yet, one facet we must not forget. Whether pull or push is the preferred mechanism of creating the desired effect, the critical item to get right is the physical presence of mind and being in order to ensure the recipient had the correct message ‘translated’ in an understandable, action-oriented and galvanising manner to ensure they get up and do something slightly different from what they did a few moments ago.
The following internal marketing “Think Differently” Apple (Steve Jobs) video we believe sums up or rather expands more eloquently on our thoughts:
The rest, is just plain noise…
Part 2 – Revelations
Reflections on 2014
As a behaviourally focused economics publication we have been very quiet and inactive during 2014. A year of reflection and introspection, however, we are ready to resume service, with vigour. And what better way to start than with a reflective piece and thoughts on the biggest risk we believe are developing under the surface without warning. Our concluding theme of 2014 is that of moral hazard.
As Margaret Thatcher once said: “There is no society”; we state today that there is ‘No Moral Hazard’; in fact there is only Moral Hazard PLUS.
We believe that there is a strong correlation between QE (Quantitative Easing) and economic moral hazard developing a new strain, mutating like an unseen virus.
QE might have saved the financial system of the developed world, but it it only provided a shot in the arm and acted as a stimulus for sustaining moral hazard.
Economics follow a flow and cyclical pattern, as discussed in our article entitled ‘Information Age Irony‘. These patterns and flows weave themselves into the fabric of our lives and affect individual economies in different ways.
It is important to understand where and how economic cycles develop and flow and how much influence they have on our general economic activities on a day to day basis, but we should not become overly obsessed by them, as they can be short-circuited from time to time by policy and policy-maker’s actions, wherever individually or collectively.
In part 2 of this article we will focus on the revelations of QE and the underlying threat of moral hazard returning on a grander and more catastrophic scale, if it goes unchecked and misunderstood.
© theMarketSoul 2014
- Bart Chilton Says Goodbye – The Essence of NeoLiberalism and the Sorcerer’s Apprentice (jessescrossroadscafe.blogspot.com)
- Scrutinizing market failure through microeconomics (edwardcollin742.wordpress.com)
- What is neo-liberalism (bruneljournalism.wordpress.com)
- New-liberal Capitalism (dissidentvoice.org)
- Henry Farrell Argues Against Left Neoliberals Like Me… (delong.typepad.com)
- Susan George: austerity means socialising losses and privatising profits – Guardian video (inquiringminds.cc)
- Polanyi on the Persistence of Economic Dogma (geoffkennedy.org)
1. The Yield Curve at 30 September 2013 – The day before the US government shutdown officially began
What can clearly be observed from the Yield Curve for Treasury Bills (T-Bills) dated 30 days is that the spread between 30 September 2013 (at 0.10%) to the rate at 11 October 2013 (0.26%) has significantly increased and that the Yield Curve has become inverted. Normally the sign of a recession or other financial calamity to come.
Will Thursday 17 October 2013 be D-Day (for Disaster or Domino-day) when the whole lot starts tumbling down again?
- Inverted Short-Term Yield Curve – Problem? (macroeconomicvolatility.wordpress.com)
- Inverted Front End of the Yield Curve – Markets Showing a possible recession? (macroeconomicvolatility.wordpress.com)
- The US needs to start encouraging saving – even if it means raising interest rates (qz.com)
- Yield Curves “Rate” your “Interest” (getdowntobusiness.typepad.com)
- Prospect for quick end to shutdown is remote (bigstory.ap.org)
- Republican Budget Brinkmanship Leads to Inverted Treasury Yield Curve (thestreet.com)
- Four Interest Rate Scenarios We Could Face (followpioneer.com)
- 1 Mo. Treasury Jumps from 10 to 27 bps in 7 days (treasury.gov)
- Yields On Short-Term US Debt That Matures Right Around The Debt Ceiling Are Blowing Out (businessinsider.com)
- US Treasury Yield Curve – The Shutdown Analysis (Part 1) (themarketsoul.com)