Paradigm Shifts Part 3: Economic Volatility and Risk Sharing


Theory

A central problem in business is financial risk allocation. When a person or a company assumes an excessive amount of risk for a potential gain it often has a negative impact on shareholder value. While calculating and pricing risk is difficult under any circumstances, it is particularly challenging in times of heightened financial volatility when […]

September 1, 2020

Paradigm Shifts Part 1: Kuhn’s Model of Scientific Revolution


Theory

The Covid-19 pandemic has had an unprecedented impact on the world. A key question that policy makers, business owners and new entrepreneurs are now facing is whether the world will revert back to “normal” or will there be a “new normal” that is fundamentally different than what we were used to before. To encourage analysis […]

May 2, 2020

The Zen Koan: Business Challenges and the Power of Questions


Theory

One way to think of business is as a series of problems and a great deal of business activity involves looking for solutions to those problems. From the perspective of Zen Buddhism, however, the light of understanding is found not in the narrow corner of answers but rather in the open spaces of questions. This […]

April 25, 2020

The Challenge of Simplicity


Theory

Despite the innate attractiveness and benefits of simplicity, stripping way excess can be a very difficult goal in practice. This article explores the power of simplicity and considers why many things tend to become more rather than less complex over time. This tendency has important ramifications for nearly everything in our lives, including our ability […]

April 19, 2020

The Vertical Pizza: X, Y and Z Axis Problem Solving Perspectives


Theory

Solving problems in many cases requires a significant change of perspective. Drawing inspiration from the x, y and z axes of the Cartesian coordinate system, which provide an infinite number of ways of conceptualizing points in space, this article discusses three problem solving perspectives that can be useful in reconceptualizing challenges and identifying solutions: vertical […]

April 17, 2020

Ptolemy’s Legacy: Perils of the Search for Market Symmetry


Theory

The attraction of symmetry has long had a powerful impact on what we see and what we wish to see in the world and in the heavens, affecting everything from the sciences to mathematics to the arts. Despite its allure, attempts to impose symmetry on inherently asymmetrical realities can severely distort truth and create significant […]

April 10, 2020

Building Sustainable Business Momentum


Theory

Rhythm and momentum are important components of business success and failure. Starting from the comments of the famous Japanese swordsman Musashi Miyamoto on rhythm, this article explores the dynamic of direction in business and sets forth practical steps that companies can take to strengthen and maintain business momentum. Musashi Miyamoto and the Concept of Rhythm […]

March 15, 2019

The Hidden Value of Longevity


Theory

When valuing corporations there is a tendency to heavily weight present performance on the ground that the past is decreasingly applicable and the future is increasingly uncertain. Yet as demonstrated by the Lindy Effect there is a good argument that longevity should be taken into consideration as an important value component. A 50 Year Swordsmanship […]

March 13, 2019