Sunday, February 20, 2011

The totally successful monopolist


 
The ultimate successful monopolist will have

1. A virtuous cycle between Strengths and Opportunities.
2. A reinforcing loop in its favor between Opportunities and Threats because its Strengths had triggered it.
3. Threats that yields weaker Weaknesses as a result.
4. Eventually leading a a reinforcing loop in Strengths favor between itself and Weaknesses.

Note
Not easy to arrive at this sweet spot and neither can it last very long given that all reinforcing loops must eventually cease. Those that accelerate come to an end even faster unless they can find new sources of growth.

Easy to make the mistake of drawng a demotion line between Threats and Weaknesses

Tuesday, February 01, 2011

Pensions nightmare

Vote for change (Box 7) is the most benign scenario. It may not happen and some worse possibilities may be the unpleasant or even horrific reality ahead of us.

The drivers, i.e., can be represented as NaviMaps with reinforcing loops are not captured in this map.

Clearly what is going on is unsustainable. They say demographics is destiny. If put to the vote and the older people are the majority, the young will be bullied because the institutions are against them. There will be revolt. Some of the young will leave for better opportunities elsewhere. The society will decline rapidly, if not catastrophically. Pensioners must accept that the promises of retirement aren't there. They will have to work more years and many will never retire at all. Will they buy this? Fortunately the baby boomers do not all retire at the same time. A problem that presents itself as trickle provides opportunities for solutions that a tipping point situation just does not. The way forward is to cut benefits and retire later. Politicians have their work cut out for them, but will they be up to it?