Knowledge Management:: Why Management Consulting Will Be Disrupted: Part 1


A lot more than Management Consultants NEED to learn from “interactions” and interdependencies IF their particular skill-set is to remain relevant. The world is better understood when viewed, as it can be in the Digital Age, as an infinite series of inter-connected systems.

Complexity (of the 'system' - business model, or corporation, etc.) x Uncertainty (of the environment, market, economy) = Fragility (of the situation) Evidently, U cannot be managed but C can. Measuring, monitoring and managing 'current complexity' is more effective than conventional means of assessing, rating, managing and modelling risk. And why it is better that a system be less complex [Occam's Razor].  The best way to impact C is by starting from the top of the Complexity profile. Because the profile is computed based on a model-free method, there are no subjective 'weights' to adjust. Basically, this guarantees that you hit the most important parameters first, i.e the hubs. A system CANNOT perform functions for which it was intended without, first, possessing and maintaining the minimum amount of complexity to do so. Therefore, by monitoring current complexity, the potential risks associated with loss of function(s) due to endogenous events, are preceded by 'fluctuations' in the complexity measure

Complexity (of the ‘system’ – business model, or corporation, etc.)
x
Uncertainty (of the environment, market, economy)
= Fragility (of the situation)
Evidently, U cannot be managed but C can.
Measuring, monitoring and managing ‘current complexity’ is more effective than conventional means of assessing, rating, managing and modelling risk. And why it is better that a system be less complex [Occam’s Razor].
The best way to impact C is by starting from the top of the Complexity profile. Because the profile is computed based on a model-free method, there are no subjective ‘weights’ to adjust. Basically, this guarantees that you hit the most important parameters first, i.e the hubs.
A system CANNOT perform functions for which it was intended without, first, possessing and maintaining the minimum amount of complexity to do so. Therefore, by monitoring current complexity, the potential risks associated with loss of function(s) due to endogenous events, are preceded by ‘fluctuations’ in the complexity measure

The core message is that both THREAT & OPPORTUNITY lie within such (inter) connectedness but the winners of the current, turbulent and competitive marketplaces are those who understand the real power of creating RESILIENCE by developing TRUST & INTERDEPENDENCE (the collaboration that the author highlights).

But you cannot buy trust. It has to be earned and, in times of such ambiguity and uncertainty, competition without differentiation (beyond pricing) is not sufficient.

As Clay Shirky famously(?) said “It is easier to understand that you face competition than obsolescence”

The ‘Risk Leaders’ of the future need to recognise that to accelerate the process of understanding they require to trade TRANSPARENCY – demonstrable, shared, principles – for INFORMATION. Otherwise the (oft overlooked) frictional costs associated with transforming data into information remain. Along with the unidentified sources of excessive complexity and ‘manageable’ risk that, unmanaged, add to volatility, increased uncertainty and – when spread through interactions – can lead to contagion (or ‘systemic risk’)!

We are living in a knowledge driven economy that is 

data-to-wisdom1heavily influenced by collaborative forces sharing intangible and tangible assets to create new value.  The internet has accelerated collaboration and people are learning from the interactions.

Why Management Consulting Will Be Disrupted: Part 1.

Gain the competitive edge by learning from natural rules


I already knew that Giles was a bright guy (I wish I could say I have already read his book!) and that we are on a very similar wavelength BUT, if you have read any of my past blogs you will recognise a familiar message in the following extract. I know that the Executive Leadership Group with whom I have been working to form ‘Resilient Communities Network’ [RCN], AIBC & TBORI-UK have heard it all before from me but it can do no harm for them and others to hear it from another…

Akin to living systems
To succeed in business we must be agile, creative, alert, spontaneous and responsive – often operating in completely new ways. Today’s rapidly changing business environment calls for businesses that thrive in rapidly changing environments: businesses more akin to living systems. Read more of this post

Customer Manifesto:: “how it be bruv!”


The tables have turned but the fact that so little has changed is OUR OWN FAULT.

Why would the Corporate world, that has so effectively exploited its power for so long, willingly give up that position?

If the new business models of the Digital Age are the one’s responding to customer needs and demands for demonstrable value – through greater transparency – we should not allow inertia or fear of change to hold us back from the sustainable benefits of loyalty built upon the ability to TRUST.

image

The “problems” aren’t new but the tools that enable group communication and collaboration are. I was born in a decade when most televisions were black & white and, within the last 25 years a computer, phone, camera, television, games console were separate items and certainly didn’t fit on a single hand-held device!!!  

SO WHY are we wasting what we have engaging in “LOL or OMG at silly videos” and swapping meaningless nonsense about celebrity culture, when there is so much wrong with a world that we take for granted…

rise_like_lions_445 There is a massive job that requires many hands and minds working together, with one purpose, for the common good. Toward a more equitable, sustainable, future for communities in crisis and the generations that follow.

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The conundrum facing insurance [courtesy of Clay Shirky]


If guys like Clay Shirky and Seth Godin “did” economics we wouldn’t be in the mess we are in now! These guys don’t think about critical issues in the conventional, College-taught, manner of an unreal world. They focus upon the world AS IT IS, AND NOT HOW WE CONVINCED OURSELVES IT WAS!

The challenge for, such as insurers, is how to embrace the lessons of the “the Digital Age” and to redesign the current, unsustainable, model. Read more of this post

Which are you and which will you be, Gen Y, Gen X or Gen G?


If you have read any of my previous blog entries (thanks if you have and WHY NOT? if you haven’t) you will already know that I have been firmly of the opinion that we are nowhere near the end of this recession. Furthermore that the “money” that has been printed, promised and pumped into the financial system is the only thing that has kept the market at false levels whilst those “in the market” continue to cream off the rewards…at everyone else’s expense!

Having said that I honestly and fervently believe that these will be the final acts of institutions and a breed of capitalist whose collective and individual greed will be their undoing. They have, at least, remained true to type during the last 2 years by stuffing their pockets whilst the are still able. Hopefully, it will be the final manifestation of the: top down – command & control – prescriptive – short term – results driven – opaque – bonus culture of ME. So it’s not all doom and gloom.

Now WE can get on with rebuilding: inside to out [i2o] – inclusive – engaged – sustainable – strategic – transparent – shared.

WE need “Responsible Capitalism”…quickly.

limitations-doors

Generation G:

I feel so positive that I want to share [again] some information that I first referred to as a novice blogger back in Feb 2009. Click on the following link. Read it. Enjoy it. Embrace it.

If it doesn’t make you feel better see a quack. If it does let me know and let other people know. Do something about it.

“Giving is the new taking and sharing is the new giving”

Please remember that “conventional wisdom” got us into this mess so now is the time to “unleash” the ideas you have had because, let’s face it, you can’t screw up as badly as others have already done!!!

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