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

Jun 17th 2021
EXTRACT: "Confronting our complex history and ultimately embracing a more equitable, balanced, and humble culture may be a tall order in these fractious times. But that makes it even more imperative that we fully reckon with who we are and who we are capable of becoming."
Jun 11th 2021
EXTARCT: "A further health benefit of hiking is that it’s classed as “green exercise”. This refers to the added health benefit that doing physical activity in nature has on us. Research shows that not only can green exercise decrease blood pressure, it also benefits mental wellbeing by improving mood and reducing depression to a greater extent than exercising indoors can."
Jun 10th 2021
EXTRACT: "“The greatness of a nation and its moral progress,” Mahatma Gandhi said, “can be judged by the way its animals are treated.” If we apply that test to the world as a whole, how much moral progress have we made over the past two millennia? ...... That question is suggested by The Golden Ass, arguably the world’s earliest surviving novel, written around 170 CE, when Emperor Marcus Aurelius ruled the Roman Empire. Apuleius, the author, was an African philosopher and writer, born in what is now the Algerian city of M’Daourouch."
Jun 4th 2021
EXTRACT: "Research we’ve done, which looked at 37 adults with type 2 diabetes, found that over two weeks, prolonged sitting was associated with high blood sugar levels. But we also found that when people stood up or walked around between periods of sitting, they had lower blood sugar levels. Other studies have also had similar results."
May 28th 2021
EXTRACT: "Paul Van Doren's legacy lies in a famous company, and in his advice to young entrepreneurs to get their hands dirty, and to know what goes into making what they are selling."
May 19th 2021
EXTRACT: "May 7th marked three hundred and ten years since the philosopher David Hume was born. He is chiefly remembered as the most original and destructive of the early modern empiricists, following John Locke and George Berkeley." .... " Shocking as it may (and should) sound, Hume is implying nothing less than that the next time you turn the key in your car ignition, you are as justified to expect the engine will start as you are in believing it will turn into a pumpkin. For there is a radical contingency that pervades all our experience. We could wake up tomorrow to a world that looks and behaves very differently to the one we are in now. Matters of fact are dependent on experience and can never be known a priori — they are purely contingent, and could always turn out different than what we expect."
May 1st 2021
EXTRACT: " The sad reality is that the Mizrahim (Jews of Middle Eastern and North African descent) were discriminated against from the day of Israel’s inception, whose Ashkenazi (European Jewish) leaders viewed them as intellectually inferior, “backward,” and “too Arab,” and treated them as such, largely because the Ashkenazim agenda was to maintain their upper-class status while controlling the levers of power, which remain prevalent to this day." ..... " The greatest heartbreaking outcome is that for yet another generation of Israelis, growing up in these debilitating conditions has a direct effect on their cognitive development. A 2015 study published in Nature Neuroscience found that “family income is significantly correlated with children’s brain size…increases in income were associated with the greatest increases in brain surface area among the poorest children.” "
Apr 25th 2021
EXTRACT: "We all owe Farah Nabulsi an enormous debt of gratitude. In a short 24-minute film, The Present, she has exposed the oppressive indecency of the Israeli occupation while telling the deeply moving story of a Palestinian family. What is especially exciting is that after winning awards at a number of international film festivals​, Ms. Nabulsi has been nominated for an Academy Award for this remarkable work of art. " 
Apr 25th 2021
EXTRACT: "When I crashed to the floor of my home in Bordeaux recently after two months of Covid-19 dizziness, I was annoyed. The next day I collapsed again. Now I was worried. What I didn’t know was that my brain was sloshing around inside my skull, causing a mild concussion. Nor did I know that I was in for a whole new world of weird and wonderful hallucinations."
Apr 13th 2021
EXTRACT: "Overall, our review has found that there isn’t evidence to back up the claims that veganism is good for your heart. But that is partly because there are few studies ....... But veganism may have other health benefits. Vegans have been found to have a healthier weight and lower blood glucose levels than those who consume meat and dairy. They are also less likely to develop cancer, high blood pressure and diabetes. "
Apr 8th 2021
EXTRACT: "Pollock’s universe, the universe of Mural, cannot be said to be a rational universe. Nor is it simply devoid of all sense. It is not a purely imaginary world, although in it everything is in a constant state of flux. Mural invokes one of the oldest questions of philosophy, a question going back to the Pre-Socratic philosophers Parmenides and Heraclitus – namely, whether the nature of Reality constitutes unchanging permanence or constant movement and flux. For Pollock, the only thing that is truly unchanging is change itself. The only certainty is that all is uncertain."
Apr 8th 2021
EXTRACT: "Many present day politicians appear to have psychopathic and narcissistic traits too. It’s easy to spot such leaders, because they are always authoritarian, following hardline policies. They try to subvert democracy, to reduce the freedom of the press and clamp down on dissent. They are obsessed with national prestige, and often persecute minority groups. And they are always corrupt and lacking in moral principles."
Apr 6th 2021
EXTRACT: "This has led some to claim that not just half, but perhaps nearly all advertising money is wasted, at least online. There are similar results outside of commerce. One review of field experiments in political campaigning argued “the best estimate of the effects of campaign contact and advertising on Americans’ candidates choices in general elections is zero”. Zero!"
Mar 30th 2021
EXTRACT: "The Father is an extraordinary film, from Florian Zeller’s 2012 play entitled Le Père and directed by Zeller. I’m here to tell you why it is a ‘must see’." EDITOR'S NOTE: The official trailer is attached to the review.
Mar 28th 2021
EXTRACT: "Picasso was 26 in 1907, when he completed the Demoiselles; de Kooning was 48 in 1952, when he finished Woman I.  The difference in their ages was not an accident, for studies of hundreds of painters have revealed a striking regularity - the conceptual painters who preconceive their paintings, from Raphael to Warhol, consistently make their greatest contributions earlier in their careers than experimental painters, from Rembrandt to Pollock, who paint directly, without preparatory studies."
Mar 26th 2021
EXTRACT: "Mental toughness levels are influenced by many different factors. While genetics are partly responsible, a person’s environment is also relevant. For example, both positive experiences while you’re young and mental toughness training programmes have been found to make people mentally tougher."
Mar 20th 2021

The city of Homs has been ravaged by war, leaving millions of people homeless an

Mar 20th 2021
EXTRACT: "There are two main rival models of ethics: one is based on rights, the other on duties. The rights-based model, which traces its philosophical origins to the work of John Locke in the 17th century, starts from the assumption that individuals have rights ....... According to this approach, duties are related to rights, but only in a subordinate role. My right to health implies a duty on my country to provide some healthcare services, to the best of its abilities. This is arguably the dominant interpretation when philosophers talk about rights, including human rights." ........ "Your right to get sick, or to risk getting sick, could imply a duty on others to look after you during your illness." ..... "The pre-eminence of rights in our moral compass has vindicated unacceptable levels of selfishness. It is imperative to undertake a fundamental duty not to get sick, and to do everything in our means to avoid causing others to get sick. Morally speaking, duties should come first and should not be subordinated to rights." ..... "Putting duties before rights is not a new, revolutionary idea. In fact it is one of the oldest rules in the book of ethics. Primum non nocere, or first do no harm, is the core principle in the Hippocratic Oath historically taken by doctors, widely attributed to the ancient Greek philosopher and physician Hippocrates. It is also a fundamental principle in the moral philosophy of the Roman statesman Marcus Tullius Cicero, who in De Officiis (On Duties) argues that the first task of justice is to prevent men and women from causing harm to others."
Mar 18th 2021
EXTRACT: "Several studies have recently compared the difference between antibodies produced straight after a coronavirus infection and those that can be detected six months later. The findings have been both impressive and reassuring. Although there are fewer coronavirus-specific antibodies detectable in the blood six months after infection, the antibodies that remain have undergone significant changes. …….. the “mature” antibodies were better at recognising the variants."
Mar 15th 2021
EXTRACT: "Like Shakespeare, Goya sees evil as something existing in itself – indeed, the horror of evil arises precisely from its excess. It overflows and refuses to be contained by or integrated into our categories of reason or comprehension. By its very nature, evil refuses to remain within prescribed bounds – to remain fixed, say, within an economy where evil is counterbalanced by good. Evil is always excess of evil." ....... "Nowhere is this more evident than in war. Goya offers us a profound and sustained meditation on the nature of war ........ The image of a Napoleonic soldier gazing indifferently on a man who has been summarily hanged, probably by his own belt, expresses the tragedy of war – its dehumanization of both war’s victims and victors."