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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: 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

Your due diligence is most likely wrong

Your due diligence is most likely wrong

As many as 70 – 90% of deals fail to create value for acquirers. The majority of these deals were the subject of commercial or strategic due diligences (DDs). Many DDs are rubber stamps – designed to motivate an investment to shareholders. Yet the requirements for a value-adding DD go beyond this.

Strategic due diligence must test investees against uncertainty via a variety of methods that include scenarios, probabilised forecasts and stress tests to ensure that investees are value accretive.

Firms that invest during downturns outperform those who don’t. DDs undertaken during downturns have a particularly difficult task – how to assess the future prospects of an investee when the future is so uncertain.

There is clearly an integrated approach to successful due diligence – despite the challenges posed by uncertainty.

Read more…

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Fast Facts

The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies

The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies

Non-conformance costs can distort pricing decisions The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies

  • The use of full absorption or average costing in a manufacturing environment with under-utilisation can lead to self-defeating pricing strategies
  • The increase in price to cover costs results in volume decreases – lowering factory utilisation and increasing unit production costs. This is the start of the utilisation-pricing “death spiral”
  • Costing according to factory utilisation – partial absorption costing – offers the opportunity to be more strategic about costing and utilisation
  • “Unabsorbed” costs can be targeted through OEE and volume improvements. At the same time, the “disadvantage” of having a large factory is normalised and pricing can compete with more fully-utilised factories
  • A recent manufacturing client saw 60% of unit costs arise from factory under-utilisation – sub-optimal OEE levels (non-conformance), low volumes and work-centre bottlenecks contributed to the utilisation gap
  • These principles can apply to any asset-intensive business – for example banking
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Selected News

Quote: Clayton Christensen

Quote: Clayton Christensen

“What’s important is to get out there and try stuff until you learn where your talents, interests, and priorities begin to pay off. When you find out what really works for you, then it’s time to flip from an emergent strategy to a deliberate one.” – Clayton Christensen – Author

This profound advice from Clayton Christensen encapsulates a timeless principle for personal and professional growth: the value of experimentation followed by focused commitment. Drawn from his bestselling book How Will You Measure Your Life?, the quote urges individuals to embrace trial and error in discovering their true strengths before committing to a structured path. Christensen, a renowned Harvard Business School professor, applies business strategy concepts to life’s big questions, advocating for an initial phase of exploration – termed ’emergent strategy’ – before shifting to a ‘deliberate strategy’ once clarity emerges.1,7

Who Was Clayton Christensen?

Clayton Magleby Christensen (1947-2020) was a Danish-American academic, author, and business consultant whose ideas reshaped management theory. Born in Salt Lake City, Utah, he earned a bachelor’s degree in economics from Brigham Young University, an MBA from Harvard, and a DBA from Harvard Business School. Christensen joined the Harvard faculty in 1992, where he taught for nearly three decades, influencing generations of leaders.1,5

His seminal work, The Innovator’s Dilemma (1997), introduced the theory of disruptive innovation, explaining how established companies fail by focusing on sustaining innovations for current customers while overlooking simpler, cheaper alternatives that disrupt markets from below. This concept has been applied to industries from technology to healthcare, predicting successes like Netflix over Blockbuster. Christensen authored over a dozen books, including The Innovator’s Solution and How Will You Measure Your Life? (2010, co-authored with James Allworth and Karen Dillon), which blends business insights with personal reflections drawn from his Mormon faith, family life, and battle with leukemia.5,6,7

In How Will You Measure Your Life?, Christensen draws parallels between corporate pitfalls and personal missteps, warning against prioritising short-term gains over long-term fulfilment. The quoted passage appears in a chapter on career strategy, using emergent and deliberate strategies as metaphors for navigating life’s uncertainties.7

Context of the Quote: Emergent vs Deliberate Strategy

Christensen distinguishes two strategic approaches, rooted in his research on successful companies. A deliberate strategy stems from conscious planning, data analysis, and long-term goals – ideal for stable, mature organisations like Procter & Gamble, which refines products based on market data.1 It requires alignment across teams, where every member understands their role in the bigger picture. However, it risks blindness to peripheral opportunities, as rigid focus on the original plan can miss disruptions.1,2

Conversely, an emergent strategy arises organically from bottom-up initiatives, experiments, and adaptations – common in startups like early Walmart, which pivoted from small-town stores after unplanned successes. Christensen notes that over 90% of thriving new businesses succeed not through initial plans but by iterating on emergent learnings, retaining resources to pivot when needed.1,5,6

The quote applies this duality to personal development: start with emergent exploration – trying diverse roles, hobbies, and pursuits – to uncover what aligns talents, interests, and priorities. Once viable paths emerge, switch to deliberate focus for sustained progress. This mirrors Honda’s accidental US motorcycle success, where employees’ side experiments trumped the formal plan.6

Leading Theorists on Emergent and Deliberate Strategy

Christensen built on foundational work by Henry Mintzberg, a Canadian management scholar. In his 1987 paper ‘Crafting Strategy’ and book Strategy Safari, Mintzberg challenged top-down planning, arguing strategies often emerge from patterns in daily actions rather than deliberate designs. He identified strategy as a ‘continuous, diverse, and unruly process’, blending deliberate intent with emergent flexibility – ideas Christensen explicitly referenced.2

  • Henry Mintzberg: Pioneered the emergent strategy concept in the 1970s-80s, critiquing rigid corporate planning. His ’10 Schools of Strategy’ framework contrasts design (deliberate) with learning (emergent) schools.2
  • Michael Porter: Christensen’s contemporary at Harvard, Porter championed deliberate competitive strategy via frameworks like the Five Forces and value chain (1980s). While Porter focused on positioning for advantage, Christensen highlighted how such strategies falter against disruption.1
  • Robert Burgelman: Stanford professor whose research on ‘intraorganisational ecology’ influenced Christensen, showing how autonomous units drive emergent strategies within firms like Intel.5

These theorists collectively underscore strategy’s dual nature: deliberate for execution, emergent for innovation. Christensen uniquely extended this to personal life, making abstract theory accessible for leadership, coaching, and self-management.3,4

Christensen’s insights remain vital for leaders balancing adaptability with purpose, reminding us that true success – in business or life – demands knowing when to explore and when to commit.

References

1. https://online.hbs.edu/blog/post/emergent-vs-deliberate-strategy

2. https://onlydeadfish.co.uk/2014/08/28/emergent-and-deliberate-strategy/

3. https://blog.passle.net/post/102fytx/clayton-christensen-how-to-enjoy-business-and-life-more

4. https://www.azquotes.com/quote/1410310

5. https://www.goodreads.com/work/quotes/138639-the-innovator-s-solution-creating-and-sustaining-successful-growth

6. https://www.businessinsider.com/clay-christensen-theories-in-how-will-you-measure-your-life-2012-7

7. https://www.goodreads.com/author/quotes/1792.Clayton_M_Christensen?page=17

8. https://www.azquotes.com/author/2851-Clayton_Christensen/tag/strategy

9. https://www.mstone.dev/values-how-will-you-measure-your-life/

“What’s important is to get out there and try stuff until you learn where your talents, interests, and priorities begin to pay off. When you find out what really works for you, then it’s time to flip from an emergent strategy to a deliberate one.” - Quote: Clayton Christensen

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