BusinessQuests - tailored advice and facilitation for business progress

Heartfelt wishes for an excellent 2010

The end of the year and the end of this decade provide me with an excellent opportunity to offer heartfelt wishes to customers, partners, suppliers and friends along with sincere thanks for all the people who've trusted BusinessQuests over and over again this year as in all previous ones. I am particularly grateful to the people and companies who've given me opportunities to explore new spaces and to further expand my professional horizons.

  

 

MIT economists' panel sees light at end of economic tunnel

This is not only a good panel discussion, but also one that has some good news. The time might be close when people can resume investing. Perhaps it's also time for Europe to realize that our economic situation is way better than the US for a number of reasons starting with the fact that we are nowhere near the level of debt that prevails in the US be it government or private debt. It's just so sad we don't have anyone to carry the torch of recovery on the political front. As someone told me recently, a recession can be a self-fulfilling prophecy whereas business & economic progress does not happen by mere wishful thinking.

Law enforcement for a change

Great piece by Stanley Bing. If we step back it's quite sad and probably yet another indication of the need for some radical changes in the financial system with a view to restoring the logical order of things, which is that finance should serve the economy, not lead it.

Conference on the economic situation

Last Thursday BusinessQuests helped organize a conference on the financial situation. We had Prof. Bruno Colmant, who also happens to be the CEO of Euronext, and Prof. Philippe Defeyt on the panel and they presented a number of interesting developments to explain the causes and the dynamics of the current situation. Aside from the content, which is very much within my field of attention, the event has been a great opportunity for me to test the adoption of online tools by a predominantly tech-conservative  audience. Results of my tests in a future post. This one is about the content of the conference.

How would you salvage the banking system?

Over the past few weeks I've been doing some research work around the financial system because I have an idea that I might pursue as an entrepreneurial venture aimed at making a difference in the following areas:

• funding for privately owned European SMB companies
• the way investors (LPs) structure their deals with fund managers
• how relationships are (not) created between LPs and companies in which a fund invests
• the degree of transparency allowed into the system for various stakeholders
• the way investment performance is measured to account for environmental, social and human cost of decisions taken by companies and by the financiers to pursue growth (and wealth)
• how companies share the benefits of their success with all stakeholders not just between shareholders
• ...

I still need to do some work, but the thing is taking a nice shape, especially after a sudden satori I had over the weekend... It now seems so obvious I am in bewildered wonder at the idea that something so evident that was right before my eyes could have escaped my attention even as I was working on stumbling blocks that it helps remove! Anyway, more in a future post. For now, I'd be grateful if you could help me by voting on a question I have: how would you go about salvaging the financial system? To answer on LinkedIn, please click here.

Excellent discussion on the crisis at Digital Life Design

Late January at Digital Life Design in Munich, there was an interesting panel with Nasim Taleb (always insightful and full of common sense | his site) and Nobel laureate Daniel Kahneman (always fascinating pioneer of psychology applied to finance and the economy | his Nobel profile ). Taleb has a realistic approach by saying that what he basically want is not to improve forecasts but rather to review the way the world is working in order to make it resistant to forecastign errors. Like Roubini he advocates the nationalization of banks. I suspect he means the "utility" part, not the "casino" part of the banking system (for a view of utility vs casino listen to the podcast at the end of this post). Kahneman shows how human psychology is a key driving force for understanding organizations, companies, the economy and markets because, as he very correctly points out, these entities do not exist in any other way than through human behavior.

Video and comments below.

To be consistent, we need (radical) change in execs' compensation

Senior executives are supposed to be dealing with strategic matters most of the time or at least supposed to be exerting major influence on a company's long term. Yet their compensations are structured to reward short term thinking and short term action. In particular bonuses and stock option schemes tend to be attributed and vest much earlier than the time horizon when the results of the execs' work become apparent. How can there be more consistency without additional legislation, regulations and authorities of control? We know none of the really works.

Keeping copyright sound

That's a worthy cause. Copyright extension is perfectly useless for people who create new stuff and only a means to securing the dominance of organizations that are increasingly made irrelevant by the radical changes in the media distribution landscape. We don't need our legislators spending time, energy and money on building perpetual streams of income for antiquated forms of content usage. Perhaps they'd be much better inspired to consider enforcing Creative Commons as the official copyright management system.

Watch this and sign the petition on the site of Sound Copyright.

Becky Hogge: Speech at Sound Copyright conference in the EU Parliament 27.01.09 from Open Rights Group on Vimeo

More pressure on marketing expected

A few short months ago there were worries about marketing budgets being cut but most professionals were sounding reassuring in saying that the bulk of marketing budgets would be transferred to online and interactive initiatives. The theory went that brands would want to keep taking initiatives and would continue the same intensity of communication by shifting their marketing dollars to more affordable channels like the Internet.

Even then this thesis did not seem to hold against careful analysis and discussions with senior decision makers even back then. Recent news seem to confirm the pain to come for agencies and marketing professionals, irrespective of the nature of their business, with an exception that is not what most people seemed to think, but makes economic sense.

Continue reading "More pressure on marketing expected" »

Here's an interesting take on the Geithner plan for shoring up the banks' financial situation. The article makes a compelling argument as to why the plan is not really a great deal for would-be investors and definitely a loosing proposition for taxpayers. So is the Treasury's plan destined to fail? Are the core causes of this mess addressed?

How could one disagree with the opinion expressed by President Obama regarding the bonuses some Wall Street bankers have decided to pay themselves? We’re really witnessing recklessness of untold and unprecedented proportions. Those bankers’ behaviro testifies to the fact that there is a complete disconnect between modern finance and the field reality of what we call the "real" economy. But of course when things are getting tough for their girlfriends, wives and mistresses who need to change lifestyle (see the DABA Girls blog to get a feel for the utter disconnect of this crowd from real life), these guys feel the pressure to do something, no? Sadly enough a limited number of people damage the reputation of an entire profession. Most of my contacts in the world of finance are just very fine persons, working hard and decently to fulfill their mission and serve real companies with real customers and real services and real employees and real profits and real problems. They’re part of economic life, whereas the people President Obama is targeting are causing economic death and loss of confidence. If we are serious about solving the current crisis, both they and the pervert system they’ve created must be taken out of the system.

Read on for an analysis take and a video embedded.

Nouriel Roubini’s (RGE – Wikipedia –  Page at NYU Stern) interview on Bloomberg is something you ought to listen carefully (podcast at the end of this post) if you’re a business founder, a manager or an asset owner. It’s not exactly the sort of content that will boost your morale, but I don’t believe the Coué method is the right way to go because it’s much more than a mere crisis of confidence. On the other hand neither denial, nor pessimism are going to take us anywhere.

Rather a pragmatic take on the situation is an essential first step if you’re serious about adapting and being in a position to fully benefit from an eventually recovering economy. This is only one of the reasons why it’s worth getting down to some of the implications of this analysis for business. Today helping business people deal with anxiety and make sense of this chaos is part of my work in different industries, from commodities to tech-innovative sectors, in different areas of Europe. So what does a pragmatic analysis of the situation mean for business? Read on and listen to the podcast.

Padmasree Warrior, Cisco’s CTO, tweeted this very beautiful sentence quoting a poster she saw:

“Rosa sat so Martin could walk, Martin walked so Obama could run, Obama ran so our children can fly”

 

Is the Treasury's plan destined to fail?

Here's an interesting take on the Geithner plan for shoring up the banks' financial situation. The article makes a compelling argument as to why the plan is not really a great deal for would-be investors and definitely a loosing proposition for taxpayers. So is the Treasury's plan destined to fail? Are the core causes of this mess addressed?

President Obama blasting bankers' bonuses

How could one disagree with the opinion expressed by President Obama regarding the bonuses some Wall Street bankers have decided to pay themselves? We’re really witnessing recklessness of untold and unprecedented proportions. Those bankers’ behaviro testifies to the fact that there is a complete disconnect between modern finance and the field reality of what we call the "real" economy. But of course when things are getting tough for their girlfriends, wives and mistresses who need to change lifestyle (see the DABA Girls blog to get a feel for the utter disconnect of this crowd from real life), these guys feel the pressure to do something, no? Sadly enough a limited number of people damage the reputation of an entire profession. Most of my contacts in the world of finance are just very fine persons, working hard and decently to fulfill their mission and serve real companies with real customers and real services and real employees and real profits and real problems. They’re part of economic life, whereas the people President Obama is targeting are causing economic death and loss of confidence. If we are serious about solving the current crisis, both they and the pervert system they’ve created must be taken out of the system.

Read on for an analysis take and a video embedded.

Roubini confirms deep crisis: how will you shield your business?

Nouriel Roubini’s (RGE – Wikipedia –  Page at NYU Stern) interview on Bloomberg is something you ought to listen carefully (podcast at the end of this post) if you’re a business founder, a manager or an asset owner. It’s not exactly the sort of content that will boost your morale, but I don’t believe the Coué method is the right way to go because it’s much more than a mere crisis of confidence. On the other hand neither denial, nor pessimism are going to take us anywhere.

Rather a pragmatic take on the situation is an essential first step if you’re serious about adapting and being in a position to fully benefit from an eventually recovering economy. This is only one of the reasons why it’s worth getting down to some of the implications of this analysis for business. Today helping business people deal with anxiety and make sense of this chaos is part of my work in different industries, from commodities to tech-innovative sectors, in different areas of Europe. So what does a pragmatic analysis of the situation mean for business? Read on and listen to the podcast.

Quote of the day - source: Cisco's CTO

Padmasree Warrior, Cisco’s CTO, tweeted this very beautiful sentence quoting a poster she saw:

“Rosa sat so Martin could walk, Martin walked so Obama could run, Obama ran so our children can fly”