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Decreased uncertainty, improved decisions
Global Advisors is a leader in defining quantified strategies, decreasing uncertainty, improving decisions and achieving measureable results.
We specialise in providing highly-analytical data-driven recommendations in the face of significant uncertainty.
We utilise advanced predictive analytics to build robust strategies and enable our clients to make calculated decisions.
We support implementation of adaptive capability and capacity.
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Thoughts
Global Advisors’ Thoughts: Leading a deliberate life
By Marc Wilson
Marc is a partner at Global Advisors and based in Johannesburg, South Africa
Download this article at https://globaladvisors.biz/blog/2018/06/26/leading-a-deliberate-life/.
Picket fences. Family of four. Management position.
Mid-life crisis. Meaning. Purpose.
Someone once said that, “At 18, I had all the answers. At 35, I realised I didn’t know the question.”
Serendipity has a lot going for it. Many people might sail through life taking what comes and enjoying the moment. Others might be open to chance and have nothing go right for them.
Some people might strive to achieve, realise rare successes and be bitterly unhappy. Others might be driven and enjoy incredible success and fulfilment.
Perhaps the majority of us become beholden to the momentum of our lives.
We might study, start a career, marry, buy a dream house, have children, send them to a top school. Those steps make up components of many of our dreams. They are steps that may define each subsequent choice. As I discussed this with a friend recently, he remarked that few of these steps had been subject of deliberations in his life – increasingly these steps were the outcome of momentum. Each will shape every step he takes for the rest of his life. He would not have things any other way, but if he knew what he knows now, he might have been more deliberate about choice and consequence…..
Read more at https://globaladvisors.biz/blog/2018/06/26/leading-a-deliberate-life/
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Strategy Tools
Strategy tools: Effective transfer pricing
So much has been written about transfer pricing. Yet it remains a bone of contention in almost every organisation. Transfer pricing is not merely a rational challenge – it often raises the emotions of internal service users and providers who argue regarding scope, quality, price and value.
We have found that effective transfer pricing relies on some fairly simple best practices and critical success factors.
Many organisations recover costs as a regular ‘below-the-line’ deduction from operating division income statements. In our experience, charge out is almost always preferable. This results in internal value judgements and negotiation regarding delivery happening closer to time of use.
We have typically seen that the realisation that internal pricing plays this role and the consequences of poor implementation are not well understood.
Results of poor transfer pricing implementation
Sub-optimal economic use decisions
Where costs / prices are higher than they should be, buyers pass this on as an inflated cost to their customers, experience margin squeeze, or utilise less of the service than they might have.
Strategically this can lead to incorrect decisions regarding the provision of services to the market and loss of market share.
Where costs / prices are lower than they should be, this can lead to overuse of a product or service and poor cost recovery from external customers.
Strategically this can result in the over promotion and sales of products and services that are achieving lower margins than thought, or that might even be making losses.
Sub-optimal investment and resourcing decisions
Incorrect pricing can lead to over- or under-investment in capacity and product or service quality. Further, the resourcing decisions will be incorrect should the price signal to the supplier be incorrect.
Political and emotional argument
Where buyers are unable to obtain assurance that an internal price is correct, there is typically resentment regarding the cost of the internal product and service and the sheltered position employees of the internal service provider occupy – in the buyer’s eyes free from commercial pressures.
Buyers and suppliers typically also argue regarding the quality of the service or product relative to the price paid.
Suppliers may react to criticism claiming their product or service is strategic in nature and refute its availability in the external markets.
Poor product / service quality
Poor price signals will result in lack of comparable product and service quality benchmarks. This can result in ‘gold-plating’ or poor-quality product and service provision.
Read more at https://globaladvisors.biz/2021/01/06/strategy-tools-effective-transfer-pricing/
Fast Facts
Fast Fact: The rate of technology adoption exploded in the 1990s
The 1990s were an inflection point in the adoption of new technologies. While radio showed fast adoption in the 1920s, new technologies introduced post 2010 had reached penetrations of more than 30% of the United States population within 3 years from launch. PCs...
Selected News
Quote: Ludwig Wittgenstein – Austrian philosopher
“The limits of my language mean the limits of my world.” – Ludwig Wittgenstein – Austrian philosopher
The Quote and Its Significance
This deceptively simple statement from Ludwig Wittgenstein’s Tractatus Logico-Philosophicus encapsulates one of the most profound insights in twentieth-century philosophy. Published in 1921, this aphorism challenges our fundamental assumptions about the relationship between language, thought, and reality itself. Wittgenstein argues that whatever lies beyond the boundaries of what we can articulate in language effectively ceases to exist within our experiential and conceptual universe.
Ludwig Wittgenstein: The Philosopher’s Life and Context
Ludwig Josef Johann Wittgenstein (1889-1951) was an Austrian-British philosopher whose work fundamentally reshaped twentieth-century philosophy. Born into one of Vienna’s wealthiest industrial families, Wittgenstein initially trained as an engineer before becoming captivated by the philosophical foundations of mathematics and logic. His intellectual journey took him from Cambridge, where he studied under Bertrand Russell, to the trenches of the First World War, where he served as an officer in the Austro-Hungarian army.
The Tractatus Logico-Philosophicus, completed during and immediately after the war, represents Wittgenstein’s attempt to solve what he perceived as the fundamental problems of philosophy through rigorous logical analysis. Written in a highly condensed, aphoristic style, the work presents a complete philosophical system in fewer than eighty pages. Wittgenstein believed he had definitively resolved the major philosophical questions of his era, and the book’s famous closing proposition-“Whereof one cannot speak, thereof one must be silent”2-reflects his conviction that philosophy’s task is to clarify the logical structure of language and thought, not to generate new doctrines.
The Philosophical Context: Logic and Language
To understand Wittgenstein’s assertion about language and world, one must grasp the intellectual ferment of early twentieth-century philosophy. The period witnessed an unprecedented focus on logic as the foundation of philosophical inquiry. Wittgenstein’s predecessors and contemporaries-particularly Gottlob Frege and Bertrand Russell-had developed symbolic logic as a tool for analysing the structure of propositions and their relationship to reality.
Wittgenstein adopted and radicalised this approach. He conceived of language as fundamentally pictorial: propositions are pictures of possible states of affairs in the world.1 This “picture theory of meaning” suggests that language mirrors reality through a shared logical structure. A proposition succeeds in representing reality precisely because it shares the same logical form as the fact it depicts. Conversely, whatever cannot be pictured in language-whatever has no logical form that corresponds to possible states of affairs-lies beyond the boundaries of meaningful discourse.
This framework led Wittgenstein to a startling conclusion: most traditional philosophical problems are not genuinely solvable but rather dissolve once we recognise them as violations of logic’s boundaries.2 Metaphysical questions about the nature of consciousness, ethics, aesthetics, and the self cannot be answered because they attempt to speak about matters that transcend the logical structure of language. They are not false; they are senseless-they fail to represent anything at all.
The Limits of Language as the Limits of Thought
Wittgenstein’s proposition operates on multiple levels. First, it establishes an identity between linguistic and conceptual boundaries. We cannot think what we cannot say; the limits of language are simultaneously the limits of thought.3 This does not mean that reality itself is limited by language, but rather that our access to and comprehension of reality is necessarily mediated through the logical structures of language. What lies beyond language is not necessarily non-existent, but it is necessarily inaccessible to rational discourse and understanding.
Second, the statement reflects Wittgenstein’s conviction that logic is not merely a tool for analysing language but is constitutive of the world itself. “Logic fills the world: the limits of the world are also its limits.”3 This means that the logical structure that governs meaningful language is the same structure that governs reality. There is no gap between the logical form of language and the logical form of the world; they are isomorphic.
Third, and most radically, Wittgenstein suggests that our world-the world as we experience and understand it-is fundamentally shaped by our linguistic capacities. Different languages, with different logical structures, would generate different worlds. This insight anticipates later developments in philosophy of language and cognitive science, though Wittgenstein himself did not develop it in this direction.
Leading Theorists and Intellectual Influences
Gottlob Frege (1848-1925)
Frege, a German logician and philosopher of language, pioneered the formal analysis of propositions and their truth conditions. His distinction between sense and reference-between what a proposition means and what it refers to-profoundly influenced Wittgenstein’s thinking. Frege demonstrated that the meaning of a proposition cannot be reduced to its psychological effects on speakers; rather, meaning is an objective, logical matter. Wittgenstein adopted this objectivity whilst radicalising Frege’s insights by insisting that only propositions with determinate logical structure possess genuine sense.
Bertrand Russell (1872-1970)
Russell, Wittgenstein’s mentor at Cambridge, developed the theory of descriptions and made pioneering contributions to symbolic logic. Russell believed that logic could serve as an instrument for philosophical clarification, dissolving pseudo-problems that arose from linguistic confusion. Wittgenstein absorbed this methodological commitment but pushed it further, arguing that philosophy’s task is not to construct theories but to clarify the logical structure of language itself.2 Russell’s influence is evident throughout the Tractatus, though Wittgenstein ultimately diverged from Russell’s realism about logical objects.
Arthur Schopenhauer (1788-1860)
Though separated from Wittgenstein by decades, Schopenhauer’s pessimistic philosophy and his insistence that reality transcends rational representation deeply influenced the Tractatus. Schopenhauer argued that the world as we perceive it through the lens of space, time, and causality is merely appearance; the thing-in-itself remains forever beyond conceptual grasp. Wittgenstein echoes this distinction when he insists that value, meaning, and the self lie outside the world of facts and therefore outside the scope of language. What matters most-ethics, aesthetics, the meaning of life-cannot be said; it can only be shown through how one lives.
The Radical Implications
Wittgenstein’s claim that language limits the world carries several radical implications. First, it suggests that the expansion of language is the expansion of reality as we can know and discuss it. New concepts, new logical structures, new ways of organising experience through language literally expand the boundaries of our world. Conversely, what cannot be expressed in any language remains forever beyond our reach.
Second, it implies a profound humility about philosophy’s ambitions. If the limits of language are the limits of the world, then philosophy cannot transcend language to access some higher reality or ultimate truth. Philosophy’s proper task is not to construct metaphysical systems but to clarify the logical structure of the language we already possess.2 This therapeutic conception of philosophy-philosophy as a cure for confusion rather than a path to hidden truths-became enormously influential in twentieth-century thought.
Third, the proposition suggests that silence is not a failure of language but its proper boundary. The most important matters-how one should live, what gives life meaning, the nature of the self-cannot be articulated. They can only be demonstrated through action and lived experience. This explains Wittgenstein’s famous closing remark: “Whereof one cannot speak, thereof one must be silent.”2 This is not a counsel of despair but an acknowledgement of language’s proper limits and the realm of the inexpressible.
Legacy and Contemporary Relevance
Wittgenstein’s insight about language and world has reverberated through subsequent philosophy, cognitive science, and artificial intelligence research. The question of whether language shapes thought or merely expresses pre-linguistic thoughts remains contested, but Wittgenstein’s formulation of the problem has proven enduringly fertile. Contemporary philosophers of language, cognitive linguists, and theorists of artificial intelligence continue to grapple with the relationship between linguistic structure and conceptual possibility.
The Tractatus also established a new standard for philosophical rigour and clarity. By insisting that meaningful propositions must have determinate logical structure and correspond to possible states of affairs, Wittgenstein set a demanding criterion for philosophical discourse. Much of what passes for philosophy, he suggested, fails this test and should be recognised as senseless rather than debated as true or false.2
Remarkably, Wittgenstein himself later abandoned many of the Tractatus‘s central doctrines. In his later work, particularly the Philosophical Investigations, he rejected the picture theory of meaning and argued that language’s meaning derives from its use in diverse forms of life rather than from a single logical structure. Yet even in this later philosophy, the fundamental insight persists: understanding language is the key to understanding the limits and possibilities of human thought and experience.
Conclusion: The Enduring Insight
“The limits of my language mean the limits of my world” remains a cornerstone of modern philosophy precisely because it captures a profound truth about the human condition. We are creatures whose access to reality is necessarily mediated through language. Whatever we can think, we can think only through the conceptual and linguistic resources available to us. This is not a limitation to be lamented but a fundamental feature of human existence. By recognising this, we gain clarity about what philosophy can and cannot accomplish, and we develop a more realistic and humble understanding of the relationship between language, thought, and reality.
References
1. https://www.goodreads.com/work/quotes/3157863-logisch-philosophische-abhandlung?page=2
2. https://www.coursehero.com/lit/Tractatus-Logico-Philosophicus/quotes/
3. https://www.goodreads.com/work/quotes/3157863-logisch-philosophische-abhandlung
4. https://www.sparknotes.com/philosophy/tractatus/quotes/page/5/

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