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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

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.

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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

Term: AI taste

Term: AI taste

“AI taste refers to the aesthetic and qualitative judgments that AI systems make when generating or evaluating content-essentially, the ‘style’ or ‘sensibility’ reflected in an AI’s outputs.” – AI taste

AI taste refers to the aesthetic and qualitative judgments that AI systems make when generating or evaluating content-essentially, the ‘style’ or ‘sensibility’ reflected in an AI’s outputs. This concept captures how AI models develop a form of discernment or preference in creative domains, such as art, writing, or design, often inferred from training data patterns rather than true subjective experience. Unlike human taste, which is shaped by embodied experiences like cultural exposure and personal failures, AI taste emerges from statistical correlations in vast datasets, enabling systems to mimic stylistic choices but lacking genuine sentience or intuition.

Key Characteristics of AI Taste

  • Pattern-Based Evaluation: AI assesses content by proxy metrics derived from user interactions, such as recommendations in music or movies, where systems like Spotify predict preferences through collaborative filtering rather than intrinsic understanding.
  • Limitations in Subjectivity: Machines excel at scalable proxies for taste in digitised domains (e.g., music) but struggle with sensory or highly subjective areas like wine tasting, requiring extensive human-labelled data to map chemical properties to descriptors like ‘oaky’ or ‘fruity’.
  • Emerging Sensory Applications: Advances like electronic tongues integrate AI to classify liquids (e.g., milk variants, spoiled juices) with over 80% accuracy by mimicking the human gustatory cortex via neural networks, revealing AI’s ‘inner thoughts’ in decision-making.
  • Human-AI Synergy: As AI improves, human taste becomes crucial as the ‘editor’ layer, providing embodied judgement to refine outputs, discern cultural nuances, and avoid pitfalls like solving the wrong problem.

Challenges and Future Implications

Current AI lacks true preferences due to its disembodied nature, relying on data-driven predictions that can falter in nuanced contexts. In creative fields, AI taste manifests as stylistic biases from training data, raising questions about authenticity. Yet, it offers competitive edges in content generation, where ‘good taste’ involves selecting resonant signals amid hype. Future developments may bridge this gap through multimodal training, enhancing AI’s qualitative sensibility.

Key Theorist: Ian Goodfellow

Ian Goodfellow, often credited as a foundational thinker whose work underpins modern AI taste, is a pioneering researcher in generative models. Born in 1987, Goodfellow earned his PhD from the University of Montreal in 2014 under Yoshua Bengio, a Turing Award winner. While working at Google Brain in 2014, he invented Generative Adversarial Networks (GANs), a breakthrough architecture where two neural networks-a generator and a discriminator-compete to produce realistic outputs.

Goodfellow’s relationship to AI taste stems from GANs’ ability to capture and replicate aesthetic distributions from data. GANs train the generator to produce content (e.g., art, faces) that fools the discriminator into deeming it authentic, effectively encoding a model’s ‘taste’ for realism and style. This adversarial process mirrors human aesthetic judgement, enabling AI to generate images rivaling human artists, as seen in applications like StyleGAN for photorealistic portraits. His work laid the groundwork for diffusion models (e.g., DALL-E, Stable Diffusion), which dominate contemporary AI content generation and embody ‘AI taste’ by synthesising visually coherent, stylistically nuanced outputs.

After Google, Goodfellow joined OpenAI, then Apple (focusing on privacy-preserving AI), and later DeepMind. His contributions extend to security research, like evasion attacks on neural networks. Goodfellow’s emphasis on generative fidelity has profoundly shaped how AI develops qualitative ‘sensibility’, making him the preeminent theorist linking machine learning to aesthetic judgement.

References

1. https://www.psu.edu/news/research/story/matter-taste-electronic-tongue-reveals-ai-inner-thoughts

2. https://natesnewsletter.substack.com/p/the-universal-ai-skill-good-taste

3. https://emerj.com/ai-taste-art-current-state-machine-learning-understanding-preferences/

4. https://coingeek.com/ai-acquisition-and-rise-of-taste-as-a-competitive-edge/

5. https://www.psychologytoday.com/us/blog/harnessing-hybrid-intelligence/202510/ai-can-now-see-hear-talk-taste-and-act

6. https://www.protein.xyz/taste-vs-ai/

"AI taste refers to the aesthetic and qualitative judgments that AI systems make when generating or evaluating content—essentially, the 'style' or 'sensibility' reflected in an AI's outputs." - Term: AI taste

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