Myths of a Near Past: Envisioning Finance Capitalism anno 2007

This paper seeks to extend earlier work on particular features and manifestations of capitalism (De Cock et al., 2001). Our 2001 Myths of a Near Future paper offered ephemera readers a large depository of images concerning the New Economy. Eight years later our focus has shifted to Finance Capitalism. Over the course of the year 2007 we cut out and scanned 81 ads placed by financial institutions in the Financial Times. Our analysis of these aims to provide a sense of how the financial world ?showed up? in this pivotal year, whilst illustrating how its representations were interwoven with fantasy throughout. We also hope that the ensemble of images associated with the paper will be creatively reassembled by its readers and possibly provide a useful teaching aid

The construction of global management consulting - a study of consultancies’ web presentations

Management consulting increasingly appears as a global endeavour as reflected in the increasing dominance of a few large, global management-consulting firms. However, features of the consulting service (e.g. its immaterial and interactional character) as well as aspects of management (e.g. its cultural anchoredness) highlight the locality of management consulting. In this paper we approach this tension between the global and the local by seeing consulting as involving the creation of generalised myths. More specifically, we ask the question: How do global consulting companies construct the viability and desirability of their services? Based on a view of management consultants as mythmakers, we study the argumentation on corporate web sites of four leading global consultancies in five different countries. Applying a framework based on the sociology of translation, we analyze the translation strategies used in making the service of global consultancies both viable and indispensable. We find that the need for consultants is to a large extent constructed through defining management as an expert activity, thus creating a need for external advisors possessing globally applicable expert knowledge. In this effort, the consultants ally with three widely spread rationalized managerial myths – the rationality myth, the globalization myth and the universality myth. We conclude, that global consulting firms are actively involved in creating and reinforcing the very same institutions, which are the prerequisites for their future success.management consulting; globalization; myth making

The Illusion of the Perpetual Money Machine

We argue that the present crisis and stalling economy continuing since 2007 are rooted in the delusionary belief in policies based on a "perpetual money machine" type of thinking. We document strong evidence that, since the early 1980s, consumption has been increasingly funded by smaller savings, booming financial profits, wealth extracted from house price appreciation and explosive debt. This is in stark contrast with the productivity-fueled growth that was seen in the 1950s and 1960s. This transition, starting in the early 1980s, was further supported by a climate of deregulation and a massive growth in financial derivatives designed to spread and diversify the risks globally. The result has been a succession of bubbles and crashes, including the worldwide stock market bubble and great crash of October 1987, the savings and loans crisis of the 1980s, the burst in 1991 of the enormous Japanese real estate and stock market bubbles, the emerging markets bubbles and crashes in 1994 and 1997, the LTCM crisis of 1998, the dotcom bubble bursting in 2000, the recent house price bubbles, the financialization bubble via special investment vehicles, the stock market bubble, the commodity and oil bubbles and the debt bubbles, all developing jointly and feeding on each other. Rather than still hoping that real wealth will come out of money creation, we need fundamentally new ways of thinking. In uncertain times, it is essential, more than ever, to think in scenarios: what can happen in the future, and, what would be the effect on your wealth and capital? How can you protect against adverse scenarios? We thus end by examining the question "what can we do?" from the macro level, discussing the fundamental issue of incentives and of constructing and predicting scenarios as well as developing investment insights.Comment: 27 pages, 18 figures (Notenstein Academy White Paper Series

Frontier Capital: Early Stage Investing for Financial Returns and Social Impact in Emerging Markets

This report outlines the importance and promise of serving low- and lower-middle-income (LMI) populations -- essentially, the groups situated between the very bottom of the pyramid and the existing middle class. As we detail herein, LMI populations have huge unmet needs and face quite a bit of instability -- challenges that can be addressed by innovative business models. We believe companies serving this demographic represent an under-tapped opportunity, both for financial returns and for outsized impact. The LMI segment represents a major market opportunity. For example, in Latin America and the Caribbean, the purchasing power of the LMI population is estimated at $405B. In South Asia, it is estimated at$483B

PPPs in the EU: a critical appraisal

The full critical overview report on PPPs in Europe, as presented at the ASPE conference in St Petersburg November 2008. This report examines the experience with PPPs in Europe. It is presented in six sections: - Concept and definitions of PPPs - Overview of development of PPPs in Europe - EU laws and policies in relation to PPPs - Myths about PPPs - Evaluating PPPs – a framework covering cost of capital, construction costs, operating costs, transaction costs, and uncertainty - The lessons of the Metronet failure in the U

The construction of global management consulting - a study of consultancies’ web presentations

Management consulting increasingly appears as a global endeavour as reflected in the increasing dominance of a few large, global management-consulting firms. However, features of the consulting service (e.g. its immaterial and interactional character) as well as aspects of management (e.g. its cultural anchoredness) highlight the locality of management consulting. In this paper we approach this tension between the global and the local by seeing consulting as involving the creation of generalised myths. More specifically, we ask the question: How do global consulting companies construct the viability and desirability of their services? Based on a view of management consultants as mythmakers, we study the argumentation on corporate web sites of four leading global consultancies in five different countries. Applying a framework based on the sociology of translation, we analyze the translation strategies used in making the service of global consultancies both viable and indispensable. We find that the need for consultants is to a large extent constructed through defining management as an expert activity, thus creating a need for external advisors possessing globally applicable expert knowledge. In this effort, the consultants ally with three widely spread rationalized managerial myths – the rationality myth, the globalization myth and the universality myth. We conclude, that global consulting firms are actively involved in creating and reinforcing the very same institutions, which are the prerequisites for their future success.management consulting; globalization; myth making

The effect of corporate restructuring on the shareholders’ value: the case of GEC/Marconi

GEC/Marconi’s transformation from a diversified conglomerate to a focused telecommunications and information technology company was an eventful and rambling transmission that resulted in the deterioration of shareholders’ value. It represents one of the most dramatic falls from grace in British corporate history and one of the greatest corporate governance fiascos of all time. The study investigates the wealth effects of Marconi’s sell-offs and acquisitions on its shareholders’ value by calculating the abnormal returns on the announcement days of all the disposals/acquisition during 1996-2002. The results support the view that shareholders’ value increases when a company proceeds to corporate sell-offs to pursue a focus strategy. However, the authors conjecture that GEC/Marconi has destroyed shareholders’ value through these disposals/acquisitions because of several mistakes, such as being prone to heavy debt

Software systems engineering: a journey to contemporary agile and beyond, do people matter?

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Software systems engineering: a journey to contemporary agile and beyond, do people matter?

It is fascinating to view the evolution of software systems engineering over the decades. At the first glance, it could be perceived that the various approaches and processes are different. Are they indeed different? This paper will briefly discuss such a journey relating to findings from an empirical study in some organisations in the UK. Some of the issues described in the literature and by practitioners are common across different software system engineering approaches over the time. It can be argued that human-element of software development plays an integral part in the success of software systems development endeavour. After all, software engineering is a human-centric craft. In order to understand such issues, we crossed the discipline to other disciplines in order to adapt theories and principles that will help to better understand and tackle such matter. Other disciplines have well established human related theories and principles that can be useful. From Japanese management philosophies, we have adapted Lean and knowledge management theories. From psychology, we have adapted Emotional Intelligence (EI). With such an interdisciplinary view, some of the issues can be addressed adequately. Which bring the question: is it really the process or the people? The second author will reflect on his experience attending the first SQM conference 25 years ago. The reflection will discuss the evolution of software systems engineering, and what was changed since then, if at all changed