The Radical Redesigning of Business for Resilience | The Nature of Business


We have been, and still are, in the grips of a flawed view of reality – a flawed paradigm, a flawed world view –and it pervades our culture putting us on biological collision course with collapse. It is the paradigm that is reflected in our culture’s infatuation with stuff and our willful ignorance of nature.
http://thenatureofbusiness.org/2013/04/22/the-radical-redesigning-of-business-for-resilience/

Beware the Totalitarian Corporation


“…I also believe that corporations can shift from totalitarian to collaborative, and that failure is inevitable for those who do not”

Holos

It is easy to imagine, in these enlightened times that totalitarianism is from a bygone age.  Remarkably, perhaps, there are still businesses that operate using the kind of hierarchical systems and culture that might be familiar to medieval kings or South American dictators from the 1970’s.

Systems with privileged elites whose roles are defined by supplication of the next person up the line, competing with their peers for favour and demanding that those in their own sphere of control make them look good.  The old incentives of money and status rule, as do the old disincentives of banishment and disfavour – physical execution, however, is unusual these days.

What is most remarkable about this is the temptation to think of business as being at the forefront of operational efficiency and modernity and not that they exist in some temporal warp.  But some do.

From a purely business perspective the totalitarian…

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Mathematics, psychology, decisions


According to naïve inductivism we might suppose that if the evidence has always fitted the models, then actions based on the supposition that they will continue to do so will be justified. (Hence, ‘it is rational to act as if the model is true’). But for something as complex as an economy the models are necessarily incomplete, so that one can only say that the evidence fitted the models within the context as it was at the time…

djmarsay

I attended a conference on the mathematics of finance last week. It seems that things would have gone better in 2007/8 if only policy makers had employed some mathematicians to critique the then dominant dogmas. But I am not so sure. I think one would need to understand why people went along with the dogmas. Psychology, such as behavioural economics, doesn’t seem to help much, since although it challenges some aspects of the dogmas it fails to challenge (and perhaps even promotes) other aspects, so that it is not at all clear how it could have helped.

Here I speculate on an answer.

Finance and economics are either empirical subjects or they are quasi-religious, based on dogmas. The problems seem to arise when they are the latter but we mistake them for the former. If they are empirical then they have models whose justification is based on evidence.

Naïve inductivism boils…

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Creative ‘deconstruction’:: Innovate Your Business Model


In such a fast-moving economy Opportunities & Threats emerge from the environment at such pace that an effective, resilient, ecosystem are prerequisites. Not since the dawning of the Industrial Revolution has the need for ‘organisational adaptability’ and agility been so apparent.  image

“…even with a concrete business model, there may come a time to modify and innovate it.  So, the question is:

What circumstances require business model innovation?

There are five circumstances that often require business model innovation.  They can be categorized into Opportunities and Needs…

via » Deconstruct and Innovate Your Business Model.

Gawande:: to err is human [or don’t mess with complexity!]


@atul_gawande by pixbymaia

@atul_gawande by pixbymaia (Photo credit: pixbymaia)

OK, so this isn’t quite what Atul Gawande says in his excellent book, ‘The Checklist Manifesto’ (link to title on Amazon) but, when highly skilled people whom we trust to see us across thousands of miles of open sea in an aircraft or through a critical 6 hour surgery, it may as well be! It is a strikingly similar message to that promoted by Nassim [Black Swan] Taleb and, implicitly, by Ontonix.

I don’t know about you but, if I am going on a transatlantic flight, under the knife or entrusting a lifetime’s worth of savings to an expert, I really don’t care that they may use a checklist to improve their chances of success! Rather that than rely upon a fluffy mascot, lucky bandana or some other such nonsense! Read more of this post