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Global Advisors is a leader in defining quantified strategies, decreasing uncertainty, improving decisions and achieving measureable results.

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Global Advisors’ Thoughts: Is insecurity behind that dysfunction?

Global Advisors’ Thoughts: Is insecurity behind that dysfunction?

By Marc Wilson
Marc is a partner at Global Advisors and based in Johannesburg, South Africa

Download this article at http://www.globaladvisors.biz/inc-feed/20170907/thoughts-is-insecurity-behind-that-dysfunction

We tend to characterise insecurity as what we see in overtly fragile, shy and awkward people. We think that their insecurity presents as lack of confidence. And often we associate it with under-achievement.

Sometimes we might be aware that insecurities can lie behind the -ias, -isms and the phobias. Body dysmorphia? Insecurity about attractiveness. Racism? Often the need to find security by claiming superiority, belonging to group with power, a group you understand and whose acceptance you want. Homophobia? Often insecurity about one’s own sexuality or masculinity / feminity.

So it is often counter-intuitive when we discover that often behind incredible success lies – insecurity! In fact, an article I once read described the successful elite of strategy consulting firms as typically “insecure over-achievers.”

Insecurity must be one of the most misunderstood drivers of dysfunction. Instead we see its related symptoms and react to those. “That woman is so overbearing. That guy is so aggressive! That girl is so self-absorbed. That guy is so competitive.” Even, “That guy is so arrogant.”

How is it that someone we might perceive as competitive, arrogant or overconfident might be insecure? Sometimes people overcompensate to hide a weakness or insecurity. Sometimes in an effort to avoid feeling defensive of a perceived shortcoming, they might go on the offensive – telling people they are the opposite or even faking security.

Do we even know what insecurity is? The very need to…

Read the rest of “Power, Control and Space” at http://www.globaladvisors.biz/inc-feed/20170907/thoughts-is-insecurity-behind-that-dysfunction

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Strategy Tools

Strategy tools: Effective transfer pricing

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.

Internal prices / cost recovery plays a crucial role within an organisation: it ‘price signals’ to the buyer and the supplier of the service. Buyers make economic use decisions and suppliers make resource and capacity decisions. This fundamental function and consequence governs the optimal implementation of internal pricing / cost recovery.

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/

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Fast Facts

Selected News

Quote: Dr Eric Schmidt – Ex-Google CEO

Quote: Dr Eric Schmidt – Ex-Google CEO

“I worry a lot about … Africa. And the reason is: how does Africa benefit from [AI]? There’s obviously some benefit of globalisation, better crop yields, and so forth. But without stable governments, strong universities, major industrial structures – which Africa, with some exceptions, lacks – it’s going to lag.” – Dr Eric Schmidt – Former Google CEO

Dr Eric Schmidt’s observation stems from his experience at the highest levels of the global technology sector and his acute awareness of both the promise and the precariousness of the coming AI age. His warning about Africa’s risk of lagging in AI adoption and benefit is rooted in today’s uneven technological landscape and long-standing structural challenges facing the continent.

About Dr Eric Schmidt

Dr Eric Schmidt is one of the most influential technology executives of the 21st century. As CEO of Google from 2001 to 2011, he oversaw Google’s transformation from a Silicon Valley start-up into a global technology leader. Schmidt provided the managerial and strategic backbone that enabled Google’s explosive growth, product diversification, and a culture of robust innovation. After Google, he continued as Executive Chairman and Technical Advisor through Google’s restructuring into Alphabet, before transitioning to philanthropic and strategic advisory work. Notably, Schmidt has played significant roles in US national technology strategy, chairing the US National Security Commission on Artificial Intelligence and founding the bipartisan Special Competitive Studies Project, which advises on the intersections of AI, security, and economic competitiveness.

With a background encompassing leading roles at Sun Microsystems, Novell, and advisory positions at Xerox PARC and Bell Labs, Schmidt’s career reflects deep immersion in technology and innovation. He is widely regarded as a strategic thinker on the global opportunities and risks of technology, regularly offering perspective on how AI, digital infrastructure, and national competitiveness are shaping the future economic order.

Context of the Quotation

Schmidt’s remark appeared during a high-level panel at the Future Investment Initiative (FII9), in conversation with Dr Fei-Fei Li of Stanford and Peter Diamandis. The discussion centred on “What Happens When Digital Superintelligence Arrives?” and explored the likely economic, social, and geopolitical consequences of rapid AI advancement.

In this context, Schmidt identified a core risk: that AI’s benefits will accrue unevenly across borders, amplifying existing inequalities. He emphasised that while powerful AI tools may drive exceptional economic value and efficiencies—potentially in the trillions of dollars—these gains are concentrated by network effects, investment, and infrastructure. Schmidt singled out Africa as particularly vulnerable: absent stable governance, strong research universities, or robust industrial platforms—critical prerequisites for technology absorption—Africa faces the prospect of deepening relative underdevelopment as the AI era accelerates. The comment reflects a broader worry in technology and policy circles: global digitisation is likely to amplify rather than repair structural divides unless deliberate action is taken.

Leading Theorists and Thinking on the Subject

The dynamics Schmidt describes are at the heart of an emerging literature on the “AI divide,” digital colonialism, and the geopolitics of AI. Prominent thinkers in these debates include:

  • Professor Fei-Fei Li
    A leading AI scientist, Dr Li has consistently framed AI’s potential as contingent on human-centred design and equitable access. She highlights the distinction between the democratisation of access (e.g., cheaper healthcare or education via AI) and actual shared prosperity—which hinges on local capacity, policy, and governance. Her work underlines that technical progress does not automatically result in inclusive benefit, validating Schmidt’s concerns.
  • Kate Crawford and Timnit Gebru
    Both have written extensively on the risks of algorithmic exclusion, surveillance, and the concentration of AI expertise within a handful of countries and firms. In particular, Crawford’s Atlas of AI and Gebru’s leadership in AI ethics foreground how global AI development mirrors deeper resource and power imbalances.
  • Nick Bostrom and Stuart Russell
    Their theoretical contributions address the broader existential and ethical challenges of artificial superintelligence, but they also underscore risks of centralised AI power—technically and economically.
  • Ndubuisi Ekekwe, Bitange Ndemo, and Nanjira Sambuli
    These African thought leaders and scholars examine how Africa can leapfrog in digital adoption but caution that profound barriers—structural, institutional, and educational—must be addressed for the continent to benefit from AI at scale.
  • Eric Schmidt himself has become a touchstone in policy/tech strategy circles, having co-chaired the US National Security Commission on Artificial Intelligence. The Commission’s reports warned of a bifurcated world where AI capabilities—and thus economic and security advantages—are ever more concentrated.

Structural Elements Behind the Quote

Schmidt’s remark draws attention to a convergence of factors:

  • Institutional robustness
    Long-term AI prosperity requires stable governments, responsive regulatory environments, and a track record of supporting investment and innovation. This is lacking in many, though not all, of Africa’s economies.
  • Strong universities and research ecosystems
    AI innovation is talent- and research-intensive. Weak university networks limit both the creation and absorption of advanced technologies.
  • Industrial and technological infrastructure
    A mature industrial base enables countries and companies to adapt AI for local benefit. The absence of such infrastructure often results in passive consumption of foreign technology, forgoing participation in value creation.
  • Network effects and tech realpolitik
    Advanced AI tools, data centres, and large-scale compute power are disproportionately located in a few advanced economies. The ability to partner with these “hyperscalers”—primarily in the US—shapes national advantage. Schmidt argues that regions which fail to make strategic investments or partnerships risk being left further behind.

Summary

Schmidt’s statement is not simply a technical observation but an acute geopolitical and developmental warning. It reflects current global realities where AI’s arrival promises vast rewards, but only for those with the foundational economic, political, and intellectual capital in place. For policy makers, investors, and researchers, the implication is clear: bridging the digital-structural gap requires not only technology transfer but also building resilient, adaptive institutions and talent pipelines that are locally grounded.

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