Shared Value: from vicious circle to virtuous cycle

Economic Growth Isn't Working

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Apart from the kudos of being a Harvard Professor, Michael E Porter is much sought after by some of the biggest Corporates on the planet. He “knows” and, in this article, he spells it out.


But is anyone in UK actually listening!?

…diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle.

A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. How else could companies overlook the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, or the economic distress of the communities in which they produce and sell? How else could companies think that simply shifting activities to locations with ever lower wages was a sustainable “solution” to competitive challenges? Government and civil society have often exacerbated the problem by attempting to address social weaknesses at the expense of business. The presumed trade-offs between economic efficiency and social progress have been institutionalized in decades of policy choices.

Companies must take the lead in bringing business and society back together. The recognition is there among sophisticated business and thought leaders, and promising elements of a new model are emerging. Yet we still lack an overall framework for guiding these efforts, and most companies remain stuck in a “social responsibility” mind-set in which societal issues are at the periphery, not the core.

Creating Shared Value

‘Complexity’ Predicts Nations’ Future Growth – Real Time Economics – WSJ

skd283551sdcAnyone who has read anything I have written or commented upon in relation to the subject of complexity could be forgiven for thinking I view this as a major breakthrough for the cause. Well I do and I don’t!

In some respects it is common sense to say that you must know how to do something before you do it and that the more often you do it the better you get at it. Continually striving, or being driven, for greater efficiencies, exploring new techniques, recruiting/training employees, etc. in an effort to minimise the required inputs or maximise the return on the outputs. Apply it to any business,  at a variety of scales. Such is the fractal self-similarity of complex systems!

It is this very "universality" that confirms the significance of our (Ontonix) model-free solutions. Our technology transcends business sectors and can benefit firms large and small. These are the reasons  WHY we are “fanatical” about spreading the message that measuring complexity brings insight far beyond what even these distinguished Academics appreciate!

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Niall Ferguson: An Evolutionary Approach to Financial History (via Catagenesis)

The Lorenz attractor is an example of a non-li...

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There is very little I can add to this (that I haven’t already said before on numerous occasions!):

…Ferguson references Schumpeter as well as other pioneering thinkers on the intersection of the natural world / evolutionary processes and the monetary/economic/financial worlds.

Those who recognize that markets & economies are complex systems, who also understand what complex systems are and how they work, are really the only people who are even getting close to an approximation of reality.

Embedded below is a short clip from a video of a lecture given by Harvard economic historian & theorist Niall Ferguson.  Ferguson discusses many topics which are of interest to this blog – non-linear dynamics and complex systems in the realm of money, finance & economics. Looking at the economy & financial markets through the lens of evolutionary processes provides valuable insights.  For example, Ferguson references Schumpete … Read More

via Catagenesis

Diversity, Risk and Innovation Growth

Brain Leaders and Learners is a consistently interesting and challenging blog that is worth a visit…if not subscription. Simply because it is very easy to just get on and do rather than to think, question and create. The following is an extract from a recent article.

My interest is two-fold.Firstly, who doesn’t want to develop their intelligence!? Secondly, complexity is often referred to as problem-solving capability…

Originator of multiple intelligences, Harvard’s Howard Gardner,  defines intelligence as … “the ability to solve real-life problems, to generate new problems, and to create something meaningful or offer a service that is valued within a person’s culture or community.”

Are you moving in the direction of innovative renewal? It takes a plan that’s rarely easy, and sometimes suffers heat from others’ risks.

Risk-taking tactics, open segues to filing work digitally across departments, as a way to avoid paper piles, open more access to organizational goals and save time.  Can help the old guard to leap over a few routines and ruts that hold back innovative growth.

Let your brain lead you past limitations and ruts

If you believe IQ is fixed and business is stuck in recession without options, then stagnation may be ensured at work, because brains either fuel or limit growth through mental plasticity. More intelligence at work relies on multiple intelligences, and leaders who expect dendrite brain cells to reconfigure for higher IQ in multiple domains. MITA brain based approaches facilitate originality through many mental and technological portals, such as multiple intelligences, built into strategies online.  How so?

1. Looking for more linguistic intelligence? Want words to come easier, ads to mean more, speeches to ring truer, or books to yield innovative action? Then play with words, do crosswords, join a list serve discussion, compete in scrabble, debate, or offer to speak to leadership conference. Search for new ideas on the internet, write a blog.  Or tell your best idea in a Tweet of 140 letters or less.  To develop words and language daily is to boost your linguistic brainpower, which includes mastery over language. Read more of this post

Revisited: Nassim Taleb at Harvard

Do yourself a favour and spend 10 mins.

Whist NNT is pretty efficient at getting his message across, because he tends to talk to audiences involved with the Financial sector, an awful lot of his interviews tend to reach a limited audience.

In this short video he is addressing students involved with social sciences and telling them (as usual) how it is. NOT how they, their parents and many, many others believe it is based upon what has gone before.

Spelling out the catastrophic dangers of assuming too much based upon probability when complexity and uncertainty are the “new games in town” in this new modernity.  

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