business

Embracing the concept of anti-fragility

Are you familiar with Nassim Taleb’s “Barbell Strategy”? 

Yes, the Barbell Strategy is a concept Nassim Taleb introduced in his book "Antifragile: Things That Gain From Disorder," which is designed to help individuals and organisations navigate uncertainty and volatility. Taleb suggests that in situations of high uncertainty and unpredictability, it's best to avoid the middle. This means staying away from investments or strategies that have moderate risk but limited upside, as they can be vulnerable to unexpected events. Taleb’s says we should put 80% into less risk, low reward investments to ensure that you don’t go bankrupt, and then put a small percentage into things where you have a finite knowable downside and where the potential upside can be huge. I think it’s essential you look at them differently, the way you react when you lose money in 20% range should be with “it could happen” eyes. On the other hand, if you lose money in the 80% bracket you should panic, as this investment is not supposed to be losing you money.

 

A large part of business is about being totally logical, consistent, pursuing efficiency, exploiting what you already know, following best practice, etc., etc. I think the Barbell Strategy can be applied to financial investments as well as to various aspects of life, including career choices, personal health, and decision-making. It's a way to thrive in a world where uncertainty and randomness play significant roles.

Effort vs. results

The Pareto Principle is also referred to as the 80/20 rule, and the concept originated from an observation made by Italian economist Vilfredo Pareto. This principle suggests that approximately 80% of effects are driven by 20% of causes. Therefore, I think one should focus on the 20% that yields 80% of the results as not everything is a priority.

Remember that results must be S.M.A.R.T (Specific, Measurable, Achievable, Relevant, and Time-Bound) and should be defined in terms of goals that can be clearly measured. If the goals are achieved, the results are accomplished, and the job is done. Efforts are actions and they specify the plan that must be executed to achieve the results.

Reconciling different goals

Image: Aaron Lynn ©

Goals: What’s best for the customer? What’s best for the local community? What’s best for the planet? These are all noble causes, but often teams can’t come to an agreement on these goals. It’s not uncommon for teams within organisations to have conflicting or even opposing goals where the only common ground is they all work for the organisation, and they all want it to be successful. Therefore, they turn to a question that much more straightforward, much easier to measure and far more sinister: What’s best for the organisation?

Whenever we ask that question it’s all over, as I think the primary focus shifts to what's best for the organisation in terms of profitability, which can sometimes lead to decisions that prioritise financial gain over other considerations such as employee well-being, environmental impact, or ethical concerns. Organisations today demand constant scale and growth, and when push comes to shove, we have to be able to support our family and we all want stability in our lives. When the decision is about feeding our families or stretching the truth, I think most people are going to choose the latter.

This may give you perspective

I think we often underestimated how similar people are to each other, just as businesses tend to share common challenges. My focus primarily revolves around assisting small and medium-sized enterprises (SMEs), and I support them in three key areas:

  1. Traffic Generation: This involves attracting potential customers, whether it's driving foot traffic to physical brick-and-mortar locations or directing online traffic to their websites.

  2. Competitive Differentiation: Businesses often grapple with standing out from their competitors, and I work with my clients to help them establish a unique and compelling identity in their respective markets.

  3. Market Expansion: Finding new opportunities and markets for their products or services is a crucial aspect of business growth, and I provide guidance in identifying and tapping into these untapped areas.

Contact me via e-mail for an initial discover meeting.

Are you a value creator?

When I enter a business meeting, my focus is consistently directed towards identifying elements that can provide the client with either an opportunity for growth or a stimulating challenge. Ultimately, I’m looking for things that are going to motivate them to act. It’s not enough to just tell them what they want to hear because I am supposed to be the expert in what I do. I aim to serve them by creating value and sharing insights into their thought process.

Here’s a line of questioning:
- What are your views and values? 

- What do you believe is good, right, and true?
- Where do you think your market’s going?

- Have you identified the intersection between your business and the market? 

- What are your recommendations based on what you believe to be good, right, and true? 


It's a balancing act

Are you aware that your knowledge is a valuable asset?
I think your skills and abilities play a significant role in how you deliver your product or service and will contribute to the quality of your offering. Whether it's your craftsmanship, problem-solving skills, communication abilities, or technical expertise. This knowledge guides your decisions, helps you make informed choices, and enables you to stay competitive and relevant. Industry expertise, understanding of customer needs, and your insights into market trends are also valuable assets. All of these attributes contribute to the overall customer experience and differentiate you from competitors. Contact me via e-mail to book a confidential 1:1 sparring session.

Prioritise and sharing

I think that if you want to be an effective consultant it's essential to prioritise what's most important over what's merely relevant. Your role is to provide valuable advice and recommendations to your clients, guiding them towards the results they desire, as without fulfilling this consultative duty, you risk becoming irrelevant in their eyes. To become a successful consultant your approach should involve breaking down complex information into manageable parts – facts and impacts. Your ability to understand the overarching trends in the world, and then assess their implications for your clients, giving them a clearer picture of how these trends will affect their businesses. This foundational knowledge will serve as a basis for crafting well-informed and actionable recommendations for your clients, and this will also position yourself as a trusted advisor

Small transactions in awesomeness

Part of Western culture, the science and technology we developed is measuring things, even things that are unmeasurable. I think one of the pleasures of art is it takes us away from the world of measurement and allows us to feel enormous dwells of emotion.

““You can’t manage what you can’t measure.””
— Peter Drucker

Expectation vs. anticipation

Working together or purchasing this product or service is bound to be an amazing experience. The outcome of this collaboration or purchase will significantly influence whether customers will choose to return for more or hire the company for future projects. In both business and life, striking the right balance between making enticing promises and avoiding overpromising is crucial because it's essential to deliver on what you have pledged. The truth is our satisfaction with any outcome often depends on the expectations we had before attaining it. It's the desire and anticipation that drive our actions, not merely the eventual reward.

““Perceived value motivates you to act, actual value motivates you to repeat the action.”
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— Burrellism

Exploring cognitive processes

In the practice of behavioural science, our goal is to identify the underlying reasons behind certain behaviours. We delve into the areas where economists may have missed the mark, recognising that in the realm of business success, it's not solely about being correct in every aspect. Rather, the key lies in discovering what your competitors have overlooked. I think it holds greater value to identify a commonly held assumption and challenge it, rather than aiming for universal correctness.

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The emotional component of experience

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What is value to your end consumers?

I think the value to the end consumers lies in the authentic meaning attached to a product or experience. In other words, rather than simply buying something for what it is, people buy what it means because that’s what generates an emotional response and provides genuine significance. This deep-down authenticity of motivation is particularly good news for smaller companies because it can give them the freedom to do something truly innovative and distinct. Nowadays, consumers are increasingly drawn to the intangible aspects of a transaction, I mean this is beyond the straightforward exchange of goods or services. And what makes meaning particularly valuable is that it doesn’t require substantial resources to produce compared to actual substances, making it a more sustainable and impactful element in business interactions. Contact me via e-mail to arrange “an intangible value” workshop for your organisation.

Personal, unique and dynamic

My approach is a circular and holistic research approach that combines both qualitative and quantitative methods. On the qualitative side, I focus on identifying the softer, emotional qualities that underpin why customers behave in certain ways, and this involves delving into their motivations and understanding the reasons behind their actions. On the quantitative side, I aim to communicate with business leaders using a language they can easily understand, relying on undisputed facts and evidence to prove or disprove hypotheses. To achieve this, I utilise quantitative data and research findings to inform and enrich the qualitative investigations, employing methods such as ethnology and anthropology. By integrating the insights gained from qualitative research back into the quantitative analysis, I can provide a comprehensive understanding of customer behaviour and its underlying factors. Contact me via e-mail to arrange a meeting.

Do you believe in magic?

Most businesses today lack the vision to optimise for changing human behaviour because they focus on optimising their processes and products based on existing consumer behaviour and economic trends. I think there are also businesses who actively seek to influence and shape consumer behaviour, often through marketing, branding, and product innovation. And these businesses understand the power of changing perceptions, creating trends, and altering the meaning and value associated with their products or services. As a marketer we can change the way people behave, we can change what things mean, we can change whether something feels cheap or expensive.

Unfortunately, the finance division of businesses are often based on rational and data-driven decisions. This approach tends to rely on analysing historical data, market trends, and economic indicators to make strategic decisions. I think whilst this analytical mindset is extremely valuable, it’s also important to recognise that unconventional and creative solutions can lead to breakthroughs and shouldn’t be ignored. Magic is not easy and not everybody can do it all the time, but it should be integrated into your decision making processes because there are magical solutions out there.

Dare to be different

Our infatuation with violence has given rise to a culture that should not be a source of pride. This is due to the fact that violence sells, we are all familiar with the saying, "If it bleeds, it leads," but this approach does not contribute to the development of a culture worth celebrating. Instead, I think we should adopt the mindset of not caring about the number of followers we have and refrain from pressing the boost button, as our primary goal should not be to appease platforms like Facebook, Instagram, or Twitter. Our true objective is to create a body of work that brings us a sense of pride, focusing on cultivating a modest but dedicated audience that can provide support, be it 10, 100, 1,000, or 10,000 individuals. Once we become comfortable with having enough in a world of endless possibilities, the amount of noise we generate becomes inconsequential.

What's the alternative?

c/o New York Times

Is there a correlation between expensive solutions and big effects?

I think the short answer is not necessarily.
While some expensive solutions may have a big impact, there are also instances where small, low-cost solutions can lead to significant outcomes. The relationship between cost and impact is not always straightforward, and it depends on the specific context and problem being addressed. In some cases, a simple and inexpensive solution may be the most effective, while in other cases, a complex and costly solution may be required to achieve the desired results. Ultimately, the effectiveness of a solution should be evaluated based on its ability to address the problem at hand, rather than its cost.

It sounds like

One of the reasons why people resist change is because they focus on what they must give up instead of what they have to gain. In business, money is money, and time and services are also money. When people get more value, they will do more, pay more and give more in return. I think that it is possible to change the world, but to change the world, you have to change yourself first.

We deserve your money

The majority of management is about rational planning of things that are entirely in their control. The obsession with planning, quantification and rationalisation arguments means that we are automatically constrained to doing those things which makes sense in advance. It’s not safe to assume that the incentives and interests of individual employees are necessarily well aligned with the interests of the organisation. I think in reality, what your business depends on are citizens whose behaviour can only be influenced obliquely, they can’t be controlled - in other words you can’t tell your customers what to buy.

Change Management Triangle

What is the Triangle of Change?
The “Triangle of Change” is a framework that is often used to help understand and manage change in organisations or individuals and consists of three interconnected elements:

1. Leadership or Strategy:
This element involves the vision, mission, and direction of the change. It requires effective leadership, planning, and communication to ensure that the change is properly understood and supported by all stakeholders.
2. People or Culture:
This element involves the attitudes, behaviors, and skills of the people who are involved in the change. It requires a focus on engaging and empowering employees, building trust and collaboration, and addressing any resistance or challenges that may arise.
3. Processes or Systems:
This element involves the tools, methods, and procedures that are used to implement the change. It requires a focus on improving efficiency, effectiveness, and quality, while also ensuring that the change is sustainable and scalable over time.

The Triangle of Change is also known as the "Change Management Triangle" or the "McKinsey's Three Horizons of Growth". It recognises that all three elements are interconnected and that any change in one area will have an impact on the others. Therefore, successful change management requires a holistic and integrated approach that takes into account all three elements.

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Solid foundations

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We all strive for success in our businesses, this becomes easier when we have a clear and well communicated vision, core values, and strategy that everyone in the organisation understands. Effective execution requires processes and procedures which are centred around the critical drivers of your business’ success. I think that focusing intently on these steps will significantly improve the internal accountability by measuring and being transparent about the key performance indicators that drive success. It’s a good idea to praise those who hold themselves accountable and deliver on their promises as this will accelerate the positive results for your business.