6 January 2019

Startup journeys take you across mountains; Corporate careers take you down river valleys

By George ILIEV
CorporateNature Metaphor Series, No 75.

Entrepreneurs discover "points of pain", tackle the uknown and overcome challenges that others often consider insurmountable. This makes the startup journey similar to climbing a mountain.

On the other hand, corporate employees tread a well-trodden path. This makes a corporate career resemble a trek down a river valley. The river has already eroded its bed through the rocks just like the company has established its policies, processes and territory; one only needs to go with the flow and follow the river downstream.

And then, occasionally, there are the canyons: rivers that have cut their bed deep across mountains. These are the unicorns: startups that headed up a mountain and on the way got big and created their own giant river valley.

Grand Canyon (Source: Wikipedia

5 January 2019

Incentives can get the animal spirits out - even in the kindest of creatures

By George ILIEV
CorporateNature Metaphor Series, No 74.

Kelly the dolphin was an obedient and fast-learning mammal in a park on the Gulf of Mexico...until it all got out of whack. She was trained to bring pieces of rubbish from her pool and would receive a fish in reward. Then Kelly realised she could manipulate the system. First, as the reward did not depend on the size of the rubbish, Kelly started breaking up large pieces of paper into smaller pieces to get multiple rewards. Then, she figured out something even more sinister: if she used her reward fish as bait, a seagull would get tempted to fly into the water, Kelly would catch it, drown it and hand over the bird's body to get more rewards. Kelly also made sure to teach her child these tricks, who in turn taught other young dolphins.

Does this remind you of investment bankers before the 2008 global financial crisis? Just like Kelly the dolphin, they would chop up sub-prime mortgages into collateralised debt obligations (CDO) and got handsome rewards for doing it.

But who is to blame: the perpetrators, be they animals or humans? Or the human creators of the incentive systems?

Dolphin (Source: Wikipedia)

4 January 2019

Entrepreneurs approach opportunities in two ways: like monkeys or like chimps

By George ILIEV
CorporateNature Metaphor Series, No 73.

Capuchin monkeys and chimpanzees both enjoy eating nuts (see documentary video below). Cracking a nut open is no rocket science but for a monkey (or even a human toddler) it can be quite a challenge.

Monkeys waste a lot of energy bashing rocks against the nut without seemingly learning much from each attempt. Chimps and other great apes, on the other hand, plan and execute the blow to the nut shell with precision learned from watching others in the family. Thus, chimps often manage to crack the nut with a single strike.

Some entrepreneurs adopt the monkey approach to tackling problems and opportunities. Others take after the chimps. Younger entrepreneurs are generally more likely to follow the "monkey way" of cracking nuts: multiple trials, multiple errors, slowly learning from their own mistakes and expending a lot of energy in the process. Mature entrepreneurs are more likely to resemble chimps: having observed others for a long time, they have learned from these observations which nuts to tackle and which to leave aside, and how best to crack the nut with the least amount of energy.

Yet, whether you are a monkey or a chimp, when you reach a nut (an opportunity), you'd better start cracking it as best as you can. Or else another species will eat it.

3 January 2019

We count animals precisely but humans loosely to guarantee human responses

By George ILIEV
CorporateNature Metaphor Series, No 72

When we count the animals in a zoo, we count very precisely and in great detail. For example, the London Zoo counted 19,289 animals in 2018.

When we count humans in a census, we omit a lot of details. For example, the US census conducted every 10 years does not ask for the citizenship of the people who get counted.

The reason for this discrepancy is simply... complexity. Whereas it is us humans who do the counting of the animals, in a census the humans are supposed to count themselves. This may trigger a complex reaction of avoidance in case the incentives for declaring all details are misaligned.

Just like dogs and wolves roll in animal carcasses to mask their scent to be more successful in hunting their prey, so people may try to hide from the census to avoid disclosing information that they find sensitive. Thus, we end up counting humans not with a fine pen but with a broad brush.

Penguins at London Zoo (Source: Wikipedia)



2 January 2019

China is a juvenile elephant: Vulnerable now but invincible in 10 years

By George ILIEV
CorporateNature Metaphor Series, No 71.

China is a juvenile elephant, in both economic, military and scientific terms. Elephants keep growing until they are 20 years old. China has at least a decade more to go until it reaches full size. Whereas the US is a full-grown tiger which has already reached the peak of its power.

The juvenile elephant is still vulnerable to predators but give it another 10 years and no rival (or predator) will dare to confront it. So Donald Trump, while generally lacking in strategic thinking, is for once acting strategically. He is aware that despite his "Make America Great Again" sloganeering, his country is an ageing tiger. He is playing hardball with China now because this is the last opportunity for the US to influence China. In 10 years, China will simply brush the US aside - not necessarily as an enemy but as a nuisance.

Juvenile elephant (Source: Wikipedia)

1 January 2019

Idea generation is like skimming the water surface

By George ILIEV
CorporateNature Metaphor Series, No 70.

When one is facing a thinking task ahead, e.g. preparing a presentation or a talk, tunnel vision focuses the mind and commands it to collect talking points and ideas from diverse areas and walks of life. This process resembles the way a Black skimmer catches fish: by skimming the surface of the water in different directions until a fish enters its beak. Given that both ideas and little fishes are fleeting, time is of the essence: you need to record the ideas that occur to you promptly, while the bird has to snap its beak shut instantaneously when it touches a fish.

Socrates uses a similar metaphor by comparing the mind with an aviary in which the birds are pieces of knowledge. If you walk into the aviary and catch a bird, you are remembering an idea/thought from the past. It is important, though, to catch the right bird, just as it is important for the Black skimmer to catch fish rather than sticks floating in the water.

Black skimmer (Source: Wikipedia)