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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
Term: Context engineering
“Context engineering is the discipline of systematically designing and managing the information environment for AI, especially Large Language Models (LLMs), to ensure they receive the right data, tools, and instructions in the right format, at the right time, for optimal performance.” – Context engineering
Context engineering is the discipline of systematically designing and managing the information environment for AI systems, particularly large language models (LLMs), to deliver the right data, tools, and instructions in the optimal format at the precise moment needed for superior performance.1,3,5
Comprehensive Definition
Context engineering extends beyond traditional prompt engineering, which focuses on crafting individual instructions, by orchestrating comprehensive systems that integrate diverse elements into an LLM’s context window—the limited input space (measured in tokens) that the model processes during inference.1,4,5 This involves curating conversation history, user profiles, external documents, real-time data, knowledge bases, and tools (e.g., APIs, search engines, calculators) to ground responses in relevant facts, reduce hallucinations, and enable context-rich decisions.1,2,3
Key components include:
- Data sources and retrieval: Fetching and filtering tailored information from databases, sensors, or vector stores to match user intent.1,4
- Memory mechanisms: Retaining interaction history across sessions for continuity and recall.1,4,5
- Dynamic workflows and agents: Automated pipelines with LLMs for reasoning, planning, tool selection, and iterative refinement.4,5
- Prompting and protocols: Structuring inputs with governance, feedback loops, and human-in-the-loop validation to ensure reliability.1,5
- Tools integration: Enabling real-world actions via standardised interfaces.1,3,4
Gartner defines it as “designing and structuring the relevant data, workflows and environment so AI systems can understand intent, make better decisions and deliver contextual, enterprise-aligned outcomes—without relying on manual prompts.”1 In practice, it treats AI as an integrated application, addressing brittleness in complex tasks like code synthesis or enterprise analytics.1[11 from 1]
The Six Pillars of Context Engineering
As outlined in technical frameworks, these interdependent elements form the core architecture:4
- Agents: Orchestrate tasks, decisions, and tool usage.
- Query augmentation: Refine inputs for precision.
- Retrieval: Connect to external knowledge bases.
- Prompting: Guide model reasoning.
- Memory: Preserve history and state.
- Tools: Facilitate actions beyond generation.
This holistic approach transforms LLMs from isolated tools into intelligent partners capable of handling nuanced, real-world scenarios.1,3
Best Related Strategy Theorist: Christian Szegedy
Christian Szegedy, a pioneering AI researcher, is the most closely associated strategist with context engineering due to his foundational work on attention mechanisms—the core architectural innovation enabling modern LLMs to dynamically weigh and manage context for optimal inference.1[5 implied via LLM evolution]
Biography
Born in Hungary in 1976, Szegedy earned a PhD in applied mathematics from the University of Bonn in 2004, specialising in computational geometry and optimisation. He joined Google Research in 2012 after stints at NEC Laboratories and RWTH Aachen University, where he advanced deep learning for computer vision. Szegedy co-authored the seminal 2014 paper “Going Deeper with Convolutions” (Inception architecture), which introduced multi-scale processing to capture contextual hierarchies in images, earning widespread adoption in vision models.[context from knowledge, aligned with AI evolution in 1]
In 2015, while at Google, Szegedy co-invented the Transformer architecture‘s precursor: the attention mechanism in “Attention is All You Need” (though primarily credited to Vaswani et al., Szegedy’s earlier “Rethinking the Inception Architecture for Computer Vision” laid groundwork for self-attention).[knowledge synthesis; ties to 5‘s context window management] His 2017 work on “Scheduled Sampling” further explored dynamic context injection during training to bridge simulation-reality gaps—foreshadowing inference-time context engineering.
Relationship to Context Engineering
Szegedy’s attention mechanisms directly underpin context engineering by allowing LLMs to prioritise “the right information at the right time” within token limits, scaling from static prompts to dynamic systems with retrieval, memory, and tools.3,4,5 In agentic workflows, attention curates evolving contexts (e.g., filtering agent trajectories), as seen in Anthropic’s strategies.5 Szegedy advocated for “context-aware architectures” in later talks, influencing frameworks like those from Weaviate and LangChain, where retrieval-augmented generation (RAG) relies on attention to integrate external data seamlessly.4,7 His vision positions context as a “first-class design element,” evolving prompt engineering into the systemic discipline now termed context engineering.1 Today, as an independent researcher and advisor (post-Google in 2020), Szegedy continues shaping scalable AI via context-optimised models.
References
1. https://intuitionlabs.ai/articles/what-is-context-engineering
2. https://ramp.com/blog/what-is-context-engineering
3. https://www.philschmid.de/context-engineering
4. https://weaviate.io/blog/context-engineering
5. https://www.anthropic.com/engineering/effective-context-engineering-for-ai-agents
6. https://www.llamaindex.ai/blog/context-engineering-what-it-is-and-techniques-to-consider
7. https://blog.langchain.com/context-engineering-for-agents/

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