May 1st 2018

Management ‘Gurus’ and Global Risk Agility

by Daniel Wagner

CEO of Country Risk Solutions and co-author of Global Risk Agility and Decision Making.


Management “gurus” have been beating some familiar drums over the past several decades, encompassing some recurring themes, such as the wonders of entrepreneurialism and the benefits of globalization. Many such gurus are telling many of us what we already know – such as that businesses which innovate will have the first mover advantage, or that, in order to grow, organizations should expand into frontier markets. When will organizations demand that the gurus tell them something they do not already know?

The authors of such books as “In Search of Excellence”, “The 7 Habits of Highly Effective People”, and “The One Minute Manager” are, in the end, selling common sense. Their messages resonate because individuals in business crave the ability to improve themselves, want to believe they have something no one else has, and desire to possess hidden knowledge about how to make more money. Where is real value addition in that? Are these gurus merely masterful at packaging what we already know into something that appears to be a subject we knew nothing about? When was the last time you heard a management guru truly blow you away with insight and wisdom?

Given that we are living in an era of disruption, should it not be the case that these business gurus are themselves being disrupted, and promote the art of disrupting? Yes, we understand that businesses operate in a competitive landscape (they always have and they always will), but why isn’t more time being spent talking, for example, about the impact of the consolidation process currently under way in industries ranging from airlines to food production to technology? Rather than becoming a more competitive landscape, the opposite has become true in many sectors of the global economy – and the companies engaged in that consolidation are generating record profits. Does this mean that all that talk for all those decades about being more competitive is just a bunch of bunk?

Consider also that, despite all the crowing about the importance and need for entrepreneurialism, the rate of new business creation has actually declined in the US since the 1970s. Why, despite all the billions of dollars spent on the pursuit of  entrepreneurialism since then, is that the case? Also, instead of enhancing organizational efficiency over the past several decades, many of the businesses that have embraced good governance have become sclerotic -- devoting enormous resources and clogging up approval processes to ensure they are doing the right thing the right way. Why are these types of issues not a primary focus of the gurus?

One could even argue that, in many cases, the very Kool-Aid businesses have drunk from the gurus over the years has contributed to preventing managers from thinking critically about the bigger picture, focusing instead on micro-level issues such as decision-making style, market-specific penetration, and quarterly financial performance. Businesses can get so caught up in short-termism and fine tuning that they may fall further and further behind the very curve they are trying so hard to stay in front of.

Since the business world has become so accustomed to relying on the gurus to tell them what to do, the gurus have an obligation to stop peddling the same old snake oil. Who is talking about how globalized the world was between 1880 and 1914 -- until war broke out and fascists subsequently determined the course of history -- and the parallels between then and now? Globalization always had a down side, and was never meant to last forever -- but the gurus chose not to talk about it. It is always just a question of time until economic nationalism reappears, but the gurus have done a poor job of addressing the nexus between economics and politics, and its impact on business, which is the real story.

If the business gurus want to do their brethren a real favor, they will address not only how to survive, but how to thrive, in this era of disruption. The benefits of entrepreneurialism, comparative advantage and globalization are yesterday’s topics. Today, global business is as much about having a foreign policy as it is about having a realistic approach toward corporate social responsibility. Current topics include how to anticipate change and create and maintain a defensive posture, creating products that contribute to the well-being of people, and wanting to do the right thing not because it is fashionable or profitable, but because of a desire to adopt a corporate culture that loudly proclaims what a company stands for.

The management gurus will only change their tune if the audiences that listen to them demand a different product mix. As the pace of technological change continues at a breathtaking pace and radical political change continues to define the new normal, instead of searching for excellence the gurus should be telling us not why organizations need to adapt, but what the cost of failing to adapt is. We should be learning less about ratcheting up the bottom line and more about getting to the finish line in one piece, and with a clear conscience. In this era of a clash between man-made and natural risk, achieving global risk agility is the key to success. Let us hope the gurus get the message.

 

*Daniel Wagner is CEO of Country Risk Solutions and co-author of Global Risk Agility and Decision Making.

This article was first published in the Sunday Guardian.

 


This article is brought to you by the author who owns the copyright to the text.

Should you want to support the author’s creative work you can use the PayPal “Donate” button below.

Your donation is a transaction between you and the author. The proceeds go directly to the author’s PayPal account in full less PayPal’s commission.

Facts & Arts neither receives information about you, nor of your donation, nor does Facts & Arts receive a commission.

Facts & Arts does not pay the author, nor takes paid by the author, for the posting of the author's material on Facts & Arts. Facts & Arts finances its operations by selling advertising space.

 

 

Browse articles by author

More Essays

Apr 16th 2019
Although it is not likely that many visitors who pass by the Giacometti sculptures on their way to Las Meninas will ponder it, the contrast between these works underscores the single greatest transformation in the history of western art, from a regime in which artists tailored their works to the aims of individual patrons, to one in which artists choose their techniques and motifs according to their own concerns, and only then present the products to an anonymous competitive market
Apr 4th 2019
On March eleventh, the world lost someone who was very special, who made a mark and touched people with his voice, as a singer, a humorist and writer..........I had the great good fortune to know him and spend time with him, playing music, talking with him – he was a man of immense culture, fluent in Hebrew, German, English, and Romanian. He loved New York City and Vienna and we would often swap apartments so that he could stay in New York while I lived at his place in Vienna.
Apr 1st 2019
The ongoing controversy over admissions to American universities has overlooked the one of the most telling aspects of the scandal—that it took place with the connivance and active participation of administrative bureaucracies able to act with impunity in the pursuit of their interests. Neither the professoriate, often the target of opprobrium from the left and the right, nor the student body, also the target of criticism from both sides of the political spectrum, bore any of the responsibility.  Current debates over “what ails” U.S. colleges and universities consistently ignore the single most important dynamic of all institutions—their structure of power. I suggest that the way in which power is allocated within American universities is strikingly similar to that of Soviet-type regimes. Presidents, chancellors, provosts, deans, and their bureaucratic apparatuses preside over vast real-estate and financial holdings, engage in the economic equivalent of central planning, have inordinate influence over personnel, and are structured hierarchically, thereby forming an enormously powerful “new class” like that described by the renowned Yugoslav dissident, Milovan Djilas, in the mid-1950s. 
Mar 22nd 2019
When you think of religion, you probably think of a god who rewards the good and punishes the wicked. But the idea of morally concerned gods is by no means universal. Social scientists have long known that small-scale traditional societies – the kind missionaries used to dismiss as “pagan” – envisaged a spirit world that cared little about the morality of human behaviour. Their concern was less about whether humans behaved nicely towards one another and more about whether they carried out their obligations to the spirits and displayed suitable deference to them. Nevertheless, the world religions we know today, and their myriad variants, either demand belief in all-seeing punitive deities or at least postulate some kind of broader mechanism – such as karma – for rewarding the virtuous and punishing the wicked. In recent years, researchers have debated how and why these moralising religions came into being.
Mar 19th 2019
European food and ingredients have become staple food choices for the British. The use of ingredients such as garlic, peppers, avocados, Parmesan cheese and all those other European ingredients that are now taken for granted are relatively new and were still rare in the 1990s. When I was growing up in rural Devon in the 1970s, olive oil was only really readily available in chemists as a cure for earache – now it is found in most food cupboards. And wine drinking has permeated through all social classes.
Mar 12th 2019
The Guggenheim’s strange and wonderful exhibition of Hilma af Klint’s groundbreaking, yet largely unknown body of abstract art is an important event – one that challenges us to not only rethink the early history of twentieth century abstract art, but to recognize her vision of art and reality as unique, authentic, and deliciously puzzling. 
Feb 25th 2019
Looking at the world today, it's clear that the consequences of this imperial legacy are still with us. If anything has changed it is that we are now beyond just viewing the former "natives" as far-away oddities. They are now living within our borders, having come to find the opportunities they were denied at home. So when I hear the reactions in the West to the influx of South Asians going to the UK, or North Africans going to France, or Central Americans migrating to the US, I can only say "Guys, these are the fruits of your conquest – your chickens coming home to roost."
Feb 25th 2019
Extracts: "The new novel Sérotonine by Michel Houellebecq, the bad boy of French literature, is a saga of depression and death told with such irony and wit that readers seem to love it despite the unsettling themes. Maybe it’s just me but I found myself laughing out loud.......True to form, the French don’t agree on Houellebecq – or anything else, for that matter. The impact of his new novel has divided the readers into opposite love-hate camps with hardly any middle ground. Houellebecq cannot leave you indifferent, notes a literary friend of mine"........Picture: Michel Houellebecq, by the reviewer Michael Johnson. 
Feb 19th 2019
The term “smiling depression” – appearing happy to others while internally suffering depressive symptoms – has become increasingly popular. Articles on the topic have crept up in the popular literature, and the number of Google searches for the condition has increased dramatically this year. Some may question, however, whether this is actually a real, pathological condition. While smiling depression is not a technical term that psychologists use, it is certainly possible to be depressed and manage to successfully mask the symptoms. The closest technical term for this condition is “atypical depression”. In fact, a significant proportion of people who experience a low mood and a loss of pleasure in activities manage to hide their condition in this way. And these people might be particularly vulnerable to suicide.
Feb 19th 2019
Outstanding, experienced journalist Michael Johnson, whose articles, often accompanied by his striking portraits, has now brought his love of music and of pen, ink, gouache and watercolor to create a study of remarkable insight, strong opinions and beauty in this gorgeous book. Written in both French and English the brief descriptions of musicians he has met, studied, interviewed are accompanied by distinctive portraits that, as his title suggests, some may be caricatures. I argue that the author/artist has created insightful studies of the human face engaged in the pursuit of music. The only caricature is his own self-deprecating, slyly wry self-portrait that opens the book—and it is worth the book’s purchase on its own. 
Feb 15th 2019
Only 9% of the overall population in the UK are privately educated, but they occupy an especially high proportion when it comes to positions of public influence: a third of MPs and top business executives, half of cabinet members and newspaper editors, three-quarters of judges....
Feb 12th 2019
There is a fascinating chapter toward the end of Alexis de Toqueville’s Democracy in America titled “What Kind of Despotism Do Democratic Nations Have to Fear?” in which the author attempted something truly extraordinary – to describe a social condition which humankind had never before encountered. We find him trying to put his finger on something which does not yet exist, but which – in his extraordinary political imagination – he was able to foresee with startling clarity.............. we must recognize that Facebook, Google, and Amazon are the new leviathans. In serving users only those posts with which they will agree,  
Feb 8th 2019
Few modern cities can boast that a herd of Longhorn cattle has been driven along its main streets. But San Antonio can: each February, in a tribute to the past, the city plays host to a cattle drive.
Feb 5th 2019
Extract: "Most drugs are made to target “bulk” cancer cells, but not the root cause: the cancer stem cell. Cancer stem cells, also known as “tumour-initiating cells”, are the only cells in the tumour that can make a new tumour. New therapies that specifically target and eradicate these cancer stem cells are needed to prevent tumours growing and spreading, but for that there needs to be more clarity around the target. Our new research may have discovered such a target. We have identified and isolated cells within different cancerous growths which we call the “cell of origin”. Our experiments on cancer cells derived from a human breast tumour found that stem cells – representing 0.2% of the cancer cell population – have special characteristics."
Jan 31st 2019
For most people, teeth cleaning may just be a normal part of your daily routine. But what if the way you clean your teeth today, might affect your chances of getting Alzheimer’s disease in years to come? There is an increasing body of evidence to indicate that gum (periodontal) disease could be a plausible risk factor for Alzheimer’s disease. Some studies even suggest your risk doubles when gum disease persists for ten or more years. Indeed, a new US study published in Science Advances details how a type of bacteria called Porphyromonas gingivalis – or P. gingivalis – which is associated with gum disease, has been found in the brains of patients with Alzheimer’s disease. Tests on mice also showed how the bug spread from their mouth to brain where it destroyed nerve cells.
Jan 28th 2019
Piano design has become so “radically standardized” since the middle of the 20th century that players and audiences are robbed of any choice today, claims a new book the piano’s past, present and future.  This book fearlessly confronts the big questions: Should we even call today’s top-selling acoustic models the “modern piano”, considering that they are all based on a 140- year-old design? Will the 21st century mark a turning point in piano building?
Jan 10th 2019
Extracts from the article: "Last November, Michael Bloomberg made what may well be the largest private donation to higher education in modern times: $1.8 billion to enable his alma mater, Johns Hopkins University, to provide scholarships for eligible students unable to afford the school’s tuition. Bloomberg is grateful to Johns Hopkins, he explains, because the opportunity to study there, on a scholarship, “opened up doors that otherwise would have been closed, and allowed me to live the American dream.” In the year after he graduated, he donated $5 to the school, all he could afford. Thanks to the success of Bloomberg L.P., the international financial-information company he founded in 1981, he has now given a total of $3.3 billion......And yet I cannot applaud Bloomberg’s donation to a university that already had an endowment of $3.8 billion and charges undergraduate students $53,740 per year to attend. My preference is for Hank Rowan, who back in 1992 gave $100 million to Glassboro State College, a public university in New Jersey that at the time had an endowment of $787,000 and annual fees of about $9,000. Rowan himself was a graduate of MIT, one of the world’s finest universities, but gratitude was not his motivation for donating. He wanted to make the biggest difference he could, and believed that one makes a bigger difference by strengthening the weak links in the higher education system than by giving even more to those who already have a lot."
Jan 9th 2019
Marcel Proust was the master of artistic time travel, as he spent the final decades of his life exploring the nature of memory, in a quest to understand the relationship between past and present. In today’s troubled present of economic malaise and political agitation, the art world of Paris is currently engaged in a Proustian exercise of reexamining, and celebrating, a lost golden age of splendor and creativity.
Dec 10th 2018
The current exhibition of Eugène Delacroix (1798-1863) at New York’s Metropolitan Museum of Art – the first of its kind to be mounted in North America – is indeed an extraordinary revelation. Delacroix was one of the great creative minds of the nineteenth century: an artist who embodied the spirit of Romanticism, a dramatist and virtuoso of coloration who never ceased to experiment, to take inspiration from the old masters – from Veronese and Rubens, Rembrandt and Caravaggio – whose works he would often copy at the Louvre, “that book from which we learn to read,” as Cézanne put it.
Dec 6th 2018
Your body has two metabolically different states: fasted (without food) and post-fed. The absorptive post-fed state is a metabolically active time for your body. But is also a time of immune system activity. When we eat, we do not just take in nutrients – we also trigger our immune system to produce a transient inflammatory response. Inflammation is a normal response of the body to infection and injury, which provides protection against stressors. This means that just the act of eating each meal imparts a degree of physiological stress on the immune system. And so for people snacking around the clock, their bodies can often end up in a near constant inflammatory state.