Key learning from society’s efforts to create meaningful environmental shifts
One major lesson from society’s efforts is the need to be able to adapt to black swans. Black swans, as Taleb calls them, are big events that are both unanticipated and highly consequential. Typically, nobody sees them coming, but when they arrive, they immensely shape our world. Events such as the 9/11 terrorist attacks changed the way the world views security issues and terrorism. Furthermore, the internet and Google have revolutionized the way we communicate and obtain information in ways never imagined before. The two have opened up new opportunities and jobs that nobody ever predicted. On the other hand, entire industries and various occupations got swept away. For instance, the postal service’s got driven into obsolescence. The service was replaced by email and text messaging. The jobs of telephone operators also went the way of the dinosaur. The above examples just emphasize how important it is for industries to adapt to change. A common saying is that “If you do not grasp change by the hand, it will grab you by the neck.”
Another lesson learned here is that trial and error encourages innovation more than academic knowledge. Through trial and error, people are more at ease to think freely without the pressure of examinations or any other form of evaluation. In academic situations, students gain knowledge for the sake of exams. Most go to the extent of cramming to excel in any given evaluation. However, cramming leads to the retention of knowledge in the short term memory. Soon after examinations the students rapidly forget about the learned information.
Businesses and other financial institutions need to restructure themselves to not only withstand adversity but also gain from it. A common saying goes, "what doesn't kill you, makes you stronger". When bones get subjected to stress, they become tougher. However, in the absence of stress, they become fragile. Business should also adapt to this philosophy. They should be able to benefit from their errors. Moreover, such businesses are the ones that ought to get favor as opposed to those whose mistakes percolate into the system.
When it comes to leadership, we need to stop relying on managers who are risk averse. Instead, we need to encourage the appointment of leaders who are not afraid of taking risks. It is through risks that businesses can come up with revolutionary innovations.
How equipped are we to learn from self-generated or consequences of system mistakes
As a business community, we are less equipped to learn from self-generated errors. In such situations, business committees tend to look for someone to blame. They pay no focus to how they can learn from the situation. Once they have identified someone to blame, the individual is punished or even dismissed. It might happen that the person who made the error was trying out a new method that he or she thought was innovate. But unfortunately, the trial led to an error. Early inventors of black swan technologies achieved their works through numerous episodes of trial and error. Thomas Edison, the inventor of the light bulb, tried for over 99 times before he finally made the working bulb.
Nearly all businesses are risk averse. They tend to rely on tested and proven methods of operation. Without the taking of risks, there can be no innovation. To come up with something new, one has to take a substantial risk and test it in a real situation. For this reason, in times of crises, they are hard hit because they have adopted a textbook method of accomplishing tasks. Instead, times of crisis are when creative juices need to be engaged. This is the moment when managers are supposed to think critically and come up with quick solutions that salvage businesses from problems. However, this skill can only get obtained through being open to taking risks.
Most businesses also focus on economies of scale. They rapidly expand to serve a larger clientele. The result is that they incur additional costs. These expenses are usually very huge. They range from operational costs, promotional costs, and other taxes. At times, these expenditures can be overbearing to the companies. When companies face too many financial constraints, they are bound to fail. One thing most businesses have not realized is that downscaling can be more beneficial in some situations. Small scale businesses have lower costs to cover. They are easy to run efficiently, and any changes get noticed in due time.
The system seems to favor business whose mistakes infiltrate into the system. Such businesses get given huge bailouts because they are deemed to be very crucial. A good change in the system would be to favor companies that learn lessons from their errors and use them to improve their business. This method makes the companies better adapted to volatility.
Transforming into the black swans as agents of change
Another action I would take is to read widely and wildly on various aspects of business. I would pay particular attention to case studies in business and management. Most of my attention will focus on how the various problems were solved and the outcomes achieved. I believe such information will help me to develop critical thinking and how to respond swiftly to stressful situations.
A significant activity I would undertake is always to keep abreast with the latest news and business trends. Such trends will enable me to anticipate the business weather and act accordingly. In the case of an impending volatility, I will also be able to quickly adapt my business to enable it to survive and benefit from the turmoil.
Entrepreneurship is a very important aspect of the “black swan” movement. Entrepreneurs come up with new and innovative products that revolutionize markets. In my business, I will always aspire to develop new products that cope with the changing times. It is my belief that when I adapt to the changing times and seasons, I am less likely to get caught off guard.
In case I am a manager leading a business team, I would encourage teamwork among members. Working as a team builds cohesion and encourages the exchange of ideas. I would also allow members to suggest better ways of working instead of me giving all the orders and directions.
The BSE of my generation
In my opinion, the BSE of the mid to late 2000s had the biggest impact on millennials. Most youngsters said their main career goals involved starting their businesses. They were not interested in climbing the corporate latter of become a chief executive. Millennials became eager to make their paths because they gained a feeling that the traditional methods do not lead anywhere.
What they see is distrust of management, chaos, breaking of contracts and bad news about business. Most of them came to the realization that starting a company, even if it fails, teaches them a lot of facts in two years than sitting in an office for ten years. These people are also less interested in managing others but in having creative and autonomous work lives.
Another preference of Millennials is to have flexible work hours. They believe that flexibility is key to boosting productivity among members of their generation. They also feel that more options to work remotely would boost their productivity.
NON-GAFA product that expresses an edgy BSE
Wireless securities trading enhanced business in the market. Orders get sent to the exchange through wireless protocols. These protocols utilize GPRS or other data products, via cell phones and other wireless devices. The BSE adopted mobile trading because the most far-reaching channel of trade is projected to be the cell phone. There is a new type of clients that has emerged. These clients have become empowered to trade at their convenience regardless of place and time. Mobile trading is like an extension of internet based trading. In this case, the form factor is smaller in the form of the cell phone. This is similar to a customer logging into the brokers portal on his PC.
Furthermore, investors no longer need to issue cheques while subscribing to initial public offers. They just write the bank account number and sign an application form to authorize their bank. The bank then makes the payment in case of allotment. This method eliminates any worries of refund as the cash remains within the investor's account. All these provide a lot of efficiency and convenience. They make the BSE edgier.
Works Cited
Taleb, Nassim N. "Learning to Love Volatility: Nassim Nicholas Taleb on the Antifragile." WSJ. N.p., 16 Nov. 2012. Web. 25 Mar. 2016.
