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GSV questionnaire: Difference between revisions
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Background narrative | ==Background narrative== | ||
*We are being asked to do more with what we have. | *We are being asked to do more with what we have. | ||
:— New products: crypto, deFi, DAOs | :—'''New products''': crypto, deFi, DAOs | ||
:— New risk environment: more volatility (energy, crypto, equities, inflation), more risk of default (archegos, [[GameStop]], evergrande, supply-chain disruptions | :—'''New risk environment''': more volatility (energy, crypto, equities, inflation), more risk of default (archegos, [[GameStop]], evergrande, supply-chain disruptions | ||
:— New/fracturing regulations: Brexit aftermath, China clampdowns, regulatory investigations in aftermath of Greensill, Archegos, etc | :—'''New/fracturing regulations''': Brexit aftermath, China clampdowns, regulatory investigations in aftermath of Greensill, Archegos, etc. | ||
Additionally there is | |||
Additionally there is new focus on agility, recognition that we have an excellent, senior team with deep institutional knowledge that may be bogged down in lower value work and that we can get better value out of. | |||
Realistically scope to grow our current capacity is limited: headcount are likely to be static; possibility of attritional headcount loss if departures not replaced. | Realistically scope to grow our current capacity is limited: headcount are likely to be static; possibility of attritional headcount loss if departures not replaced. | ||
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*Identify process waste and overproduction | *Identify process waste and overproduction | ||
*Reset incentives inside the firm | *Reset incentives inside the firm | ||
==Organisational principles== | |||
*Over time, in a stable market, teams skew ''senior'': They get better, more experienced, and less dependent on lane barriers and training wheels. Corollary: | |||
*'''Over time, policies and fixed rules become less effective''': As teams become more senior, they are less reliant on training wheels. Training wheels get in the way. and more of a hindrance. | |||
Legal is advisory, for edge cases, novel situations, crisis response and situation management | Legal is advisory, for edge cases, novel situations, crisis response and situation management | ||
*Operational interaction is to structure documentation processes to be seamless, standardised, low-touch, and to manage and centralise legal risk from documentation. | *Operational interaction is to structure documentation processes to be seamless, standardised, low-touch, and to manage and centralise legal risk from documentation. | ||
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*'''[[Ignorance of the law is no excuse]]''': BAU legal knowledge lives with the business. It therefore requires someone senior enough to make the call that this is not BAU legal. | *'''[[Ignorance of the law is no excuse]]''': BAU legal knowledge lives with the business. It therefore requires someone senior enough to make the call that this is not BAU legal. | ||
*'''You cannot solve a complex system'''. You cannot eliminate all uncertainty. There are no rules that will prevent all risk and (ensure a return). When facing uncertainty, there is a trade off between improvising and programmatising. You can't do both with out losing something. Expertise is a bet on improvising. | *'''You cannot solve a complex system'''. You cannot eliminate all uncertainty. There are no rules that will prevent all risk and (ensure a return). When facing uncertainty, there is a trade off between improvising and programmatising. You can't do both with out losing something. Expertise is a bet on improvising. | ||
*'''Raise [[escalation threshold]]s''': | *'''Raise [[escalation threshold]]s''': All of these are predicated on ''upskilling'', not ''downskilling''. | ||
:—'''Incoming''': Don’t take calls from junior people. Encourage teams to own their BAU knowlege. | |||
:—'''Internal''': If you have a senior, expert team, ''let it improvise''. Empower it. Remove formal rules, that arbitrarily lower [[escalation threshold]]s. | |||
:—'''Outgoing''': Develop feedback loops that systematically remove escalations. Avoid ad-hoc concessions. Realistically, if you have done it once you will do it again. Develop programs to standardise and regularise processes through iteration. Don’t escalate the same thing twice. But, flipside: hold the line. There are two sides to “Avoid ad-hoc concessions”: it becomes much more important to hold the line on standardised terms. Don't allow wordsmithing. | |||
*'''[[Coping strategies]]''': optimise expertise for where there is good information, time, and tranquility. | *'''[[Coping strategies]]''': optimise expertise for where there is good information, time, and tranquility. | ||
*'''Build for the long term'''. Mend the roof while the sun shines. To put off maintenance.l because it isn’t raining and there is football in the park is human. | *'''Build for the long term'''. Mend the roof while the sun shines. To put off maintenance.l because it isn’t raining and there is football in the park is human. | ||
*'''[[The temporary tends to become permanent]]''': short term workarounds persist. Therefore, build for the long term. | *'''[[The temporary tends to become permanent]]''': short term workarounds persist. Therefore, build for the long term. | ||
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