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Valeriy Lobanovskyi is generally recognised as the greatest football manager of the Soviet era and then, later, Ukraine. Though undoubtedly there is an army of armchair pundits who pronounce Johann Cruyff as the undisputed great for his re-establishment of the Netherlands’ ‘Total Football’ philosophy at Barcelona in the 1990s, I would be tempted to go further and crown Lobanovskyi the father of the modern game.

Taking on the role of manager at his former club, Dynamo Kyiv in 1973, within a year, he guided them to their first Soviet Top League title in three years. He would go on to help the team win it another seven times during his tenure. In the post-Soviet era, Lobanovskyi is credited with five Ukrainian National League titles between 1997 and 2001.

But how is it that he led his team to glory on so many occasions? At least some of the answer to that question is not down to his career as a footballer, but off the pitch, as an engineering student at a significant place and during a significant time.

He was born and grew up during an age of grand technological optimism in Kyiv, an age perhaps best characterised by a competition not decided over the kick of a pig’s bladder, but over which of the two Cold War rivals, the Soviet Union or the US, would break free of the earth’s atmosphere first.

It was a competition that the Soviets won, of course. Kyiv was the centre of this technological revolution taking place. In a 2011 article on Lobanovskyi by Jonathan Wilson, he says: “the first cybernetic institute in the USSR was opened there in 1957 and quickly became acknowledged as a world leader in automated control systems, artificial intelligence and mathematical modelling. It was there, in 1963, that an early prototype of the modern PC was developed.”

Lobanovskyi’s analytical mind, coupled with a chance meeting in 1972 with statistician Anatoliy Zelentsov, resulted in the co-authored book The Methodological Basis of the Development of Training Models, which offered a science-based breakdown of the game. The book, published shortly before Lobanovskyi’s death in 2003, forms the basis for many of Lobanovskyi’s pioneering methods, which have included video analysis ‘field research,’ tracking players’ fitness levels, and providing a more comprehensive plan for helping players achieve and maintain peak physical condition. He also ensured his players were capable of playing several different positions, to maximise the overall flexibility of the team allowing it to adapt to the changing pattern of play on the field.

A lot of this may seem well ahead of its time. That’s because it was

To this end, he is also credited with the diamond midfield formation, in which the midfield is arranged with one attacking midfielder up front, one defensive behind and two wide midfielders to provide multiple options for attack. This formation was adopted with great success by many teams thereafter, including Carlo Ancelotti’s AC Milan.

Alongside Zelentsov, Lobanovskyi conducted advanced pre- and post-match analysis with every conceivable statistic on each player and element of the game recorded, up to and including the exact measurement of each football pitch Dynamo played on.

A whole new ball game
If you think about the game today and where we are technologically at this moment, a lot of this may seem well ahead of its time. That’s because it was. It is difficult not to see direct parallels with the work of Lobanovskyi and Zelentsov and technology like ‘Deltatre Opta,’ a modern video analysis system adopted by the UEFA Champions League utilising AI to provide actionable insights into team performance and individual player behaviour and analysis for its coaches.

The global sports analytics market, which includes AI applications, was valued at $1.9bn in 2018 and is projected to reach $4.6bn by 2025 according to a report by KPMG. Many clubs around the world are today investing heavily in AI and data analytics for everything from player performance to scouting for talent. Which is hardly surprising considering the considerable amount of money involved in modern-day football transfers (see Fig 1).

For a team established by the Soviet secret police in 1927, Dynamo Kyiv found in Lobanovskyi a man whose love of the game was tempered by method, by the weight of a game’s many variables, by strategy and, perhaps above all, by result. He and Zelentsov were football’s original scientists, collecting data in a Kyivian Soviet Laboratory and testing their hypotheses out on the field. It would be trite to say that these men were ahead of their time. They were exactly where they needed to be. And yet, history does have a tendency not to repeat itself, but to rhyme, as Mark Twain would have it.

I write this as we have now caught the second wave, upon which space travel, artificial intelligence and love for the beautiful game ride high above us, three topics upon which we can reliably chart the progress of humankind. Perhaps once we have revisited the moon and used AI to solve the most complex problems we face, then we can turn our attention to conjuring a straightforward explanation of the off-side rule – though I rather suspect if I asked OpenAI’s ChatGPT for an answer on this right now, it wouldn’t hesitate.

Striving for perfection
It is heartening perhaps to recognise that we are capable of embracing these optimistic, nascent periods where we rediscover who we are and reimagine what is possible, even amid the catastrophe of conflict and climate change, and in the wake of a global health crisis. Football may seem a trivial thing in light of these topics, but try telling that to someone like Lobanovskyi.

Wilson recounts that upon winning the Supreme League Title, a young Lobanovskyi, then 22, said: “a realised dream ceases to be a dream.” It was a curious and dour remark, but reflects a man whose vision went far beyond league titles.

Winning on its own, was nothing. Perfecting a formula for winning well, was something. His dream was of the future and he brought it to the game he loved.

Reshoring: the future of supply chains

Posted on August 16, 2023August 14, 2023 by itsupport

Have global supply chains had their day? A quick scan would suggest not. But times are changing. Supply chains are shrinking. Production in some areas is coming home and firms are seriously rethinking how they build a supply chain for the future. Increasingly, organisations in the US and other developed nations are moving away from the cheap-labour strategies of yore – the kind that have fuelled rapid industrialisation in South East Asia. Think textiles in Bangladesh or plastics in China. Instead, those same firms are exploring so-called ‘reshoring’ or ‘nearshoring’ to reduce their risk exposure.

Already 67 percent of global retailers and manufacturers have changed where they source materials and components due to supply chain disruptions. Almost two thirds say that further relocation remains a high priority, or the top priority. More than three quarters do not expect supply chains to normalise in the next 12 months. The numbers tell a clear story. In 2010 there were just 6,000 American jobs created by reshoring, according to the Reshoring Intiative’s 2023 report. Last year there were 360,000, an increase of almost 6,000 percent (see Fig 1).

Last year General Motors announced plans to pump $7bn into four Michigan manufacturing sites to boost battery cell production and EV capacity. Intel announced the largest private-sector investment in Arizona history with plans to build two new leading-edge chip factories. And Pittsburgh-based US Steel unveiled plans to invest $3bn in Alabama-made steel. Reshoring, once a strategic theory, is a market reality.

A new normal
Why the sudden change? Well, the triple threat of Covid, politics and climate change have a lot to do with it. Together they’ve stressed time and again just how dangerously exposed global supply chains are to pockets of disruption. In the UK, for example, shoppers were left wanting when, thanks to unpredictable weather on the continent, there were no tomatoes on the shelves. While in the US, beer drinkers were hard up thanks to a Covid-induced shortage of carbon dioxide supplies. These may seem like trivial examples, but they’re instructive of a new normal for supply chains that span the globe – one where economic shocks, political instability, and climate-induced catastrophe will regularly hit business as usual.

“Large pandemics like Covid-19 and the Spanish flu are relatively likely,” claims one William Pan, associate professor of global environmental health at Duke. He and other researchers estimate that a pandemic similar in scale to Covid-19 is likely to come within 59 years. Food for thought. Or consider Russia’s decision to invade Ukraine, which was, among many things, a useful reminder to bosses that authoritarian leaders rarely act with shareholders’ best interests in mind.

Since then, access to oil and gas, metals, such as titanium and palladium, and agricultural crops, including wheat and corn, have been severely limited – and expensive. Should a Chinese invasion of Taiwan follow, as many experts suspect, it will have a freezing effect on global supply chains. Yet the unpredictability of geopolitics pales in comparison to climate shocks. “Climate change is a slow-moving crisis that is going to last a very, very long time, and it’s going to require some fundamental changes,” says Austin Becker, a maritime infrastructure resilience scholar at the University of Rhode Island, speaking to Yale Environment 360. From floods to wildfires, extreme weather is bashing ports, roads and factories worldwide, seriously compromising the integrity of global supply chains.

Flooding in China recently forced the closure of a Nissan plant. Heatwaves in France forced the closure of nuclear power stations. This is only the beginning, and while no area is immune to climate shocks, many companies will have no choice but to rehome production in areas where infrastructure is more resilient. Little wonder then that 96 percent of CEOs are thinking about reshoring, have decided to reshore, or have reshored already – up on 78 percent in 2022.

The practicalities of reshoring
The first question, naturally, is how much will it cost? “Ultimately, for private companies the decision comes down to costs,” says Shay Luo, Principal at Kearney. “Sometimes the end-to-end costs, including production, tariffs and logistics, are too much. Which explains why most American companies move from China to Altasia countries and Mexico, rather than return to the US directly.”

Even without disruption, shipping costs and unfriendly policy add a fair chunk to the price tag of doing business in far-flung nations. But homing production locally in the US or in the EU, for example, is, frankly, expensive. “It’s important for governments to offer policy and economic support that incentivises private companies to align their for-profit interests with any motivations the government may have,” Luo says.

After all, politicians like nothing more than to sell their constituents on better and more abundant job prospects, while businesses like business-friendly policies. Take US President Joe Biden, who signed two bills last year to make American manufacturing more attractive. His CHIPS and Science Act includes a pot of $52.7bn for American semiconductor research, development, manufacturing and workforce development.

Moreover, his Inflation Reduction Act sets aside a tidy $369bn to promote clean energy, in part by giving generous incentives to EV manufacturers based in the US. Goods from China are also subject to a 25 percent penalty tariff, meaning locally sourced goods enjoy an effective tax advantage. The same applies in the EU, where a new Carbon Border Adjustment Mechanism adds a kind of trade tariff on emissions generated by imports from outside the EU. “The wind has changed from one which was blowing globalisation along at an ever-faster rate, to a headwind, making short-term costs a big part of sourcing decisions,” according to a recent ING report on the matter.

Though simply creating manufacturing jobs does not mean that workers will automatically show up. According to Kearney, half of manufacturing executives struggle to fill vacancies, even for basic manufacturing tasks, and look to automation and training to address the challenge.

Luo suggests that more accessible childcare and relevant education, particularly in STEM subjects, could help expand the pool for employers. With the right policy, governments can begin to close that skills gap. Though recent and persistent inflationary pressures mean that wages will give many pause.

At least until recently, labour costs have not been a huge factor for relocation. However, growing inflationary pressures are stretching the gap between the US, the EU and China once again. Today as before, wages are a major consideration in deciding whether or not to reshore.

The question though is not ‘will you produce at home or abroad?’ Rather, it’s a question of balance. The shape of supply seems to be changing in every conceivable way. It’s becoming less chain-like and more network-based. Diversification can protect against the immense geopolitcal, environmental and economic challenges we’re seeing.

The future
Ultimately, the decision to relocate boils down to whether or not companies can realise some sort of competitive advantage. It will often be the case, for example, that reshoring will bring tax advantages or reduce shipping costs, but if the trade-offs in terms of wage rises or raw materials are too great, companies will be reluctant to reshore on such a large scale. It’s not a question of home or away, obviously. Companies will diversify their production rather than uproot it entirely. If the primary concern is around disruption, a diversified supply chain will, in theory, mitigate any threat.

The shape of supply seems to be changing in every conceivable way

This is a sentiment shared by the World Bank, who warn that stronger value chains, not reshoring, are needed after the Covid-19 shock. “Value chains – which split the production of goods and services into discrete activities that can be spread across the globe – have helped generate remarkable gains in prosperity,” they write. “Between 1990 and 2017, low- and middle-income countries almost doubled their share in global exports, from 16 percent to 30 percent, as they joined value chains. During the same period, access to new markets and investment opportunities reduced the proportion of people living in extreme poverty from 36 percent to nine percent.”

The impact of reshoring on low- and middle-income countries may not necessarily be front of mind for bosses, but there is a compelling development case for diversification over reshoring. Worryingly, a shift toward global reshoring in high-income countries and China could drive an additional 52 million people into extreme poverty, with the majority in Sub-Saharan Africa.

There isn’t just anecdotal evidence but reliable data to show that we’re seeing a rewiring of global supply chains. Whether production will move home wholesale, however, is the wrong question. Instead it falls on companies and governments to consider what value chain works not just for bosses but for the developing world as a whole. Reshoring represents an opportunity for global companies, for politicians and for local employment. It also presents an existential threat to millions of people across the world. The picture, as always, is complicated. But again, reshoring is no longer a theory, it’s a reality.

Real-life Succession: handing over the keys

Posted on August 15, 2023August 14, 2023 by itsupport

The final season of HBO’s hit show Succession captivated audiences across the world this year. Each week, millions around the globe tuned in to catch up on the latest backstabbing and in-fighting among the Roy siblings – the super-rich heirs to a media empire and one of the most deeply dysfunctional families on TV. The Roys’ machiavellian scheming and power-hungry plotting kept audiences hooked over the course of the show’s four-season run. But, while the cut-throat world of Succession certainly draws on real-life influences at times, the reality of managing leadership change is thankfully far more civilised – even if it does pose its own challenges.

In my own experience, the negotiations resulting in my being named CEO of the family business – Premier Dental – were among the most difficult processes of my professional life. These negotiations saw my father relinquish his role as CEO and owner and move into a new status as chairman of the board. At this time, decisions had to be made that many family businesses find themselves wrestling with at some time – issues such as how ownership shares will be divvied up among various members of the family, how those shares will be paid for or otherwise transferred from one owner to another, how important decisions about the business will be made, and how long the transition from one generation to the next will take, and more. With this experience of succession planning under my belt, there are five essential tips I would offer any family business looking to navigate a change in leadership and governance.

Legal representation: The business will employ a law firm to manage the entire process – but you should also engage a lawyer to advise you personally and to represent your individual interests. This is a family affair, but what’s best for you and what’s best for other members of the family may not always be perfectly aligned. When all parties have advice and representation to defend their interests, then the chances for creating a plan that is fair to everyone are greatly enhanced.

Respectfulness: Avoid taking the Roy family approach. Foul-mouthed insults and scathing jibes are not what is needed, here. Be respectful of everyone involved in the process, difficult as this may be at times. Big decisions about the future of a family business involve money, power, prestige and pride – all matters that generate strong emotional reactions. No matter how much all the family members love one another, the discussions are likely to become contentious. Work hard to avoid saying or doing things that you may later regret or that may end up burning bridges among family members. If you keep your head, even when others may lose theirs, in the end you’ll be glad you did. Trust me, I’ve been ‘headless’ myself – it’s not cute.

You need to balance current interests with the needs of future generations

Communication: Again, this is where Succession teaches us what not to do. The lack of communication between the extended Roy family is simply staggering – and by leaving so much unsaid, they so often find themselves in tight spots that could have been avoided. Remember that you can only get what you ask for – so don’t assume the other members of the family, or the professional advisors and representatives involved in the process, understand what you need, want and value. Speak clearly about what matters to you and about the kind of arrangements that you consider fair and beneficial to the business – and when necessary, repeat yourself until you are sure you have been heard.

Use data: As with any negotiating process, you will achieve more if you know as much as you can. This means understanding the family, its philosophies and preferences; the strengths, weaknesses, and needs of the business as it faces a challenging future; the kinds of arrangements that other families have made when faced with similar business issues; and so on. If you do your homework and shape your ideas according to what you learn, you’ll be more likely to end up with an agreement that allows for a solid future.

Plan for the non-end: Although it’s difficult, you need to balance current interests with the needs of future generations. Strive to leave them a business and a dynamic that will raise as few questions and difficulties as possible.

Managing change at the top
On a personal level, addressing these issues required some challenging conversations with my father, which were complicated by our unique relationship and his approach to business. At times, when my father and I were at odds, he would vaguely suggest that he might want to reconsider things we’d already settled, making the whole process very stressful for me. The months of negotiations embroiled me in a period of pain and frustration more intense than any other I’ve experienced. In the end, though, our disagreements on ownership and control were resolved amicably and, I believe, for the good of the business. But if anyone ever tells you that dealing with a family business and its culture is easy, don’t believe them.

Javier Milei’s radical shakeup: Storming Argentina’s 2023 primaries

Posted on August 14, 2023August 23, 2023 by itsupport

Financial spheres were abuzz as the staunch libertarian and market maven, Javier Milei, garnered a staggering 30.5 percent of votes with 90 percent counted. For many, Milei’s rise is emblematic of the larger fault lines in the nation’s fiscal policies and political ethos.

Flaunting his long hair and equipped with an economic acumen honed in the corridors of finance, Milei represents an antithesis to Argentina’s prevailing fiscal order. He’s been a vocal critic of ‘Kirchnerism’ – a populist economic strategy adopted by the country over the last decades. Critics often label Milei as hard-right, but in financial circuits, he’s viewed as a pragmatic visionary, especially given Argentina’s precarious economic landscape.

A deeper dig into his fiscal proposals reveals audacious plans that are nothing short of revolutionary in the Argentine context. Notably, Milei advocates for the abolition of the Argentine peso, pitching its replacement with the US dollar. It’s a move that’s raised eyebrows, but also earned nods of approval from certain sections that view the peso as emblematic of Argentina’s financial missteps.

This isn’t merely about currency. It’s about a nation where four out of ten people live below the poverty line, grappling with a debilitating inflation rate that soared to 116 percent. For a considerable segment of the Argentine populace, the verdict is in: the prevailing system, with its entrenched policies and bureaucratic inertia, has palpably failed.

Milei’s economic narrative is underpinned by a comprehensive assault on ‘Kirchnerism’. It’s a battle cry being echoed by those disillusioned by persistent economic quagmires. His penchant for rock music and spiritual pursuits might paint a colourful personal canvas, but it’s his financial blueprint that’s resonating with a populace desperate for change.

However, the path ahead is laden with challenges. Milei’s detractors argue that his economic measures, while radical, lack the nuance needed to navigate the complexities of Argentina’s socio-economic matrix. Yet, what’s undeniable is the groundswell of support, especially among the younger demographic.

The financial world is watching with bated breath. Milei’s victory in the primaries could set the stage for greater upheavals in October. If he clinches the win then, it could herald a pivotal chapter not just for Argentina, but for emerging markets grappling with similar challenges.

The key question remains: can this libertarian maverick, with his audacious fiscal prescriptions, steer Argentina away from its entrenched economic abyss?

Sustainability lessons from Iceland

Posted on August 14, 2023August 14, 2023 by itsupport

When the world’s leading climate scientists released the final instalment of their latest assessment report in March 2023, the thousands of pages amounted to a warning: world leaders must act more quickly on climate change. Upon the Intergovernmental Panel on Climate Change (IPCC)’s latest publication, United Nations secretary general António Guterres told leaders that it was now or never, and he called on nations to invest in renewable energy and low-carbon technology to reduce emissions in order to hit net zero targets “as close as possible to 2040” – a deadline that is a decade before the 2050 goal most countries are aiming for.

Economies have been slow to decarbonise, but the target of limiting warming to 1.5°C is still achievable, the IPCC report said. “There is sufficient global capital to rapidly reduce greenhouse gas emissions if existing barriers are reduced,” it said, calling on governments, investors, central banks and financial regulators to play their part. One country is hoping to be a model of how to eliminate barriers to carbon neutrality and freedom from fossil fuels: Iceland. But what does decarbonisation look like in Iceland, and can other nations replicate its methods for reaching this milestone?

A distinct advantage
Iceland has a goal to be carbon neutral by 2040, and leaders have put forward an ambitious climate action plan to achieve this. But the country, famous for its volcanoes and geothermal spas, undeniably has an advantage. Iceland has already phased out fossil fuels in both electricity production and house heating. “Iceland has been harnessing renewable energy for over a century,” explained Nótt Thorberg, director of the trade group Green by Iceland, which is part of Business Iceland.

“At the very beginning, it started small – just some experimenting amongst a few entrepreneurs.” New businesses found innovation in the application of geothermal for direct house heating and developing hydro power from springs in the early 1900s, and it grew from there. “Today, over 85 percent of Iceland’s primary energy stems from renewables, and 100 percent of electricity and house heating is renewable,” Thorberg said. But there is still work to be done. Green by Iceland has cited several areas, including: transitioning to a carbon-free transportation system, implementing more effective waste management practices, scaling up sustainable agricultural practices and boosting local carbon removal efforts.

Leading by example
Over the past century, Iceland has built its expertise in geothermal energy, which has advantages and disadvantages. Geothermal technology involves extracting heat from the ground to be used directly for heating or converted into electricity. It is low cost and able to operate year-round at stable levels, unlike wind and solar power. However, to be used to its full advantage to generate electricity, particular conditions are needed that are limited to tectonically active regions. Iceland’s 32 active volcanic systems make it one of the most active volcanic regions on the planet, with eruptions occurring every four years on average. Currently, just 20 countries generate geothermal energy, and with its famous hot springs and geysers, Iceland is the poster child for the technology.

Iceland’s innovative answers to decarbonisation should give other countries the inspiration to search for solutions

Geothermal accounts for more than 60 percent of Iceland’s primary energy, according to Thorberg, but she insisted that its adoption could be wider. “Interestingly, many countries have the opportunity to harness geothermal,” she said. “If you look at a heat map of the world, many parts will light up. This goes for large areas within the US and Europe, for instance.”

For countries looking to start generating energy with geothermal plants, investment in research and development (R&D) is a given, but Thorberg said Iceland has seen a significant return on investment, with savings of three percent of annual GDP as a result of geothermal applications. As innovators in the sector, they are now taking their expertise further afield. “Iceland has accumulated considerable experience and knowledge when it comes to geothermal and the cascading uses, and many of the solutions that have come out of our journey can be applied in other parts of the world.”

Reykjavik Geothermal, which was founded in 2008, has a focus on exporting its expertise to emerging markets that have ideal resources for geothermal energy, and it is currently constructing two projects in Ethiopia. In the African Rift Valley, Gunnar Orn Gunnarsson, founder and chief operating officer of Reykjavik Geothermal, said the volcanic geology is familiar, and experts in Iceland are keen to help and educate other countries. “It’s an environment we understand,” he said. Arctic Green Energy was similarly created to export Iceland’s leadership in geothermal and other renewables to the emerging markets of Asia. The business teamed up with China’s Sinopec in 2006 to create Sinopec Green Energy, which has become the world’s largest geothermal district heating company.

Continued innovation
Iceland fosters a culture of resilience and innovation inspired by necessity. “The fact that we are a small nation is a strength, it brings closeness, and we share a common vision,” said Thorberg. “Especially during times of crises, we have thus worked together to make the most of what we have within Iceland. So, there is a degree of resilience, courage and forward thinking ingrained in our shared values as a nation, which has brought us where we are today.”

This is evident in its growing start-up ecosystem. From ORF Genetics, which is hoping to be a game-changer in the lab-grown meat sector, to Vaxa, which converts clean energy into nutrient-rich microalgae. One of the country’s most exciting innovations comes from a business partnership to pull carbon dioxide (CO2) from the air and store it back in the ground. Carbfix is accelerating a natural process that usually occurs over geological timescales, whereby CO2 is turned into rock. Using their method, the process can be completed in just two years. The business has plans to scale up significantly to decrease emissions from heavy industry worldwide. “We have very high interest from abroad to investigate various ways of collaboration, whether it be to analyse rock formations, use our geological expertise to estimate whether an area could potentially be a good place to apply our technology, whether we could receive emissions captured by other companies around the world – all of these discussions are going on,” said Ólafur Guðnason, head of communications at Carbfix. “We foresee within the next few years to have a definite project underway somewhere abroad.”

Working together
Collaboration is critical for success at companies like Carbfix, as it only forms one part of the decarbonisation solution – it needs a partner company to capture the CO2 before it stores it in the ground. “Because our solution is regarded as tried and tested, we’re fortunate to have a lot of chances to collaborate with direct air capture companies,” Guðnason said.

In Iceland, he said, companies benefit from a small population and a close relationship between the government and industry. “The cluster mentality of collaborative innovation is quite strong here as a culture in Iceland, and we as Carbfix have definitely benefited immensely from collaborating with academia and other companies. Collaboration is a core element for us to move forwards,” Guðnason said.

Because of the nature of Iceland’s geothermal energy plants, businesses have naturally clustered around power facilities to share resources. However, that attitude extends beyond the energy sector. Iceland Ocean Cluster is using the same collaborative spirit to connect entrepreneurs, businesses and knowledge in the marine industries to create a circular economy centred around another of Iceland’s vast resources: fish. “There is no waste in the seafood industry,” says Thor Sigfusson, founder of the Iceland Ocean Cluster. “There is economic value in this.” As well as creating seafood, fish byproducts can be used in beauty products, in clothing and fashion and even in the medical industry: Kerecis, an Iceland-based business, uses cod skins to heal wounds.

Iceland’s unique location and geography have presented opportunities for innovative businesses, and certainly some of these projects could be replicated elsewhere. But perhaps the biggest takeaway is the way the Icelandic businesses, government and people have collaborated over the country’s climate goals. The latest IPCC report stressed the importance of sharing knowledge and expertise. “If technology, know-how and suitable policy measures are shared, and adequate finance is made available now, every community can reduce or avoid carbon-intensive consumption,” it said.

“Iceland has an abundance of natural resources, and we went from being one of the poorest nations in Europe to one of the most prosperous ones,” says Thorberg. “Our geographical location meant we needed to push new boundaries to develop as a country.” What’s important to consider, she continued, is that Iceland’s renewable transition was a political decision, with significant upfront investment and R&D. Rather than a copy-and-paste strategy, Iceland’s innovative answers to decarbonisation should give other countries the inspiration to search for solutions based on their own resources and opportunities. “I think other countries can learn from our path, in that sense,” Thorberg said. “There is a degree of courage you need in the beginning. To succeed in your strategy, you will need to do things differently – just as Iceland did.”

London: no longer the world’s dirty money clearing house?

Posted on August 9, 2023August 23, 2023 by itsupport

For years, London has been synonymous with being the global clearing-house for dirty money, attracting illicit funds from around the world. However, recent developments and increased scrutiny have brought about a growing determination to put an end to this reputation.

London’s role as the world’s dirty money clearing house has been well-documented. High-value properties have become a haven for criminals and money launderers, seeking to legitimise their ill-gotten gains by investing in the city’s prestigious real estate market. This influx of dirty money has distorted property prices, fuelled inequality, and compromised the market’s integrity.

Taking Action
Recognising the urgent need to combat money laundering and restore the credibility of its financial system, the UK government has implemented various measures to curb the flow of dirty money into London. One significant development was the introduction of the “Unexplained Wealth Order” (UWO) mechanism in 2018. UWOs empower authorities to investigate individuals who own assets that appear disproportionate to their known income, allowing for the seizure of these assets if the owner fails to provide a reasonable explanation. This tool has proven effective in uncovering hidden wealth and exposing money laundering activities.

Transparency is crucial in eliminating London’s reputation as a dirty money clearing house. The British government has taken steps to increase transparency in the real estate sector by establishing a public register that tracks the ownership of overseas companies owning UK properties. This register aims to prevent money laundering and deter criminals from using real estate as a means to hide their illicit funds. It serves as a valuable tool for authorities to identify suspicious transactions and ensure greater accountability.

Collaborative Efforts
Tackling the issue of dirty money requires collaboration between governments, regulatory bodies, and financial institutions. Sharing intelligence and strengthening international cooperation are vital in exposing and dismantling global money laundering networks. To this end, the UK government has been working closely with international partners to enhance information sharing and coordinate efforts to combat illicit financial activities.

While progress has been made, challenges remain in completely eradicating London’s reputation as a clearing-house for dirty money. The complexity of financial networks and the use of offshore entities make it difficult to trace the origins of illicit funds. Continued investment in resources, technology, and expertise is necessary to strengthen the capacity of law enforcement agencies to detect and prevent money laundering activities effectively.

London’s status as the world’s dirty money clearing house is slowly being dismantled through a combination of legislative measures, increased transparency, and international collaboration. The introduction of UWOs and the public register signify the commitment to combat money laundering and restore integrity to the real estate market. While challenges persist, there is a growing determination to ensure that London’s financial system remains clean and transparent, safeguarding the city’s reputation as a global financial hub.

The diminishing effectiveness of Western sanctions

Posted on August 9, 2023August 9, 2023 by itsupport

In recent years, there has been mounting evidence to suggest that the effectiveness of Western sanctions is diminishing. This article aims to critically examine the reasons behind this decline in effectiveness and explore potential alternatives.

One of the key factors contributing to the diminishing effectiveness of Western sanctions is the changing dynamics of the global economy. As emerging powers like China, Russia, and India rise in prominence, they provide alternative economic avenues for targeted countries. These nations are often willing to fill the void left by Western sanctions, thereby reducing their impact. Additionally, the interconnectedness of the global economy allows countries to find workarounds and establish new trade partnerships, limiting the effectiveness of Western sanctions.

Sanctions Fatigue
Sanctions have become a common tool in Western foreign policy, leading to what some refer to as “sanctions fatigue.” Years of imposing and maintaining sanctions on various countries have led to a desensitisation among both the target countries and the international community.

Targeted nations have become adept at weathering sanctions, developing strategies to mitigate their impact, and finding ways to continue their activities through illicit means. This growing resilience undermines the intended impact of Western sanctions.

Western sanctions often have unintended consequences that can undermine their effectiveness. In some cases, they lead to increased hardship and suffering among the general population while failing to put sufficient pressure on the targeted regime.

This humanitarian cost can erode international support for sanctions and generate sympathy for the targeted regime, ultimately weakening the intended impact. Furthermore, sanctions can create opportunities for corruption and black market activities, benefiting those who thrive in the face of economic restrictions.

The effectiveness of Western sanctions heavily depends on the support and cooperation of other nations. However, securing broad multilateral support has become increasingly challenging, as countries often have diverse interests and priorities.

Disagreements among Western nations themselves can further dilute the impact of sanctions. For instance, the Iran nuclear deal highlighted divisions within the international community regarding the efficacy and approach to sanctions. Without united international support, Western sanctions become less potent as countries seek alternative avenues for engagement.

Exploring Alternatives
Given the diminishing effectiveness of Western sanctions, it is crucial to explore alternative approaches to achieve foreign policy goals. Diplomatic engagement, dialogue, and negotiation should be prioritised to address concerns and resolve conflicts. Building coalitions and alliances with like-minded nations can help exert collective pressure on targeted regimes.

Economic incentives and positive reinforcement strategies can also be explored as means to steer the behaviour of countries towards desired objectives. It is essential to recognise that a multi-faceted approach, encompassing both coercive and cooperative measures, may yield better results.

The diminishing effectiveness of Western sanctions can be attributed to several factors, including changing global dynamics, sanctions fatigue, unintended consequences, and limited multilateral cooperation.

While sanctions have played a role in shaping international relations, their limitations are becoming increasingly evident. As the global landscape continues to evolve, it is imperative for Western nations to reassess their strategies, explore alternative approaches, and prioritise diplomatic engagement in order to achieve their foreign policy objectives more effectively.

Understanding the pitfalls of compliance fatigue

Posted on August 8, 2023August 8, 2023 by itsupport

Compliance fatigue refers to the mental and operational exhaustion that arises from the continuous burden of adhering to an ever-expanding web of rules, regulations, and protocols. While the importance of regulatory compliance cannot be understated, the pitfalls of compliance fatigue are a pressing concern that demands attention.

Dilution of priorities: As organisations grapple with an ever-growing array of regulations, their focus can shift from core business objectives to simply meeting compliance requirements. This shift dilutes the strategic vision and hampers innovation, as resources and energy are redirected towards checking boxes rather than driving meaningful progress.

Risk of oversight: The overwhelming nature of compliance tasks increases the likelihood of important details slipping through the cracks. Organisations might miss crucial updates or fail to address emerging risks, leading to potential regulatory violations and reputational damage.

Decision paralysis: Navigating intricate compliance landscapes can lead to decision paralysis. Organisations might hesitate to take strategic steps or launch new initiatives due to concerns about potential compliance complications, stifling growth and innovation.

Employee burnout: Employees responsible for managing compliance activities can experience burnout due to the constant pressure of ensuring adherence to regulations. This not only affects their mental well-being but also diminishes their ability to contribute effectively to the organisation.

Inefficient resource allocation: Compliance fatigue can lead to over-allocation of resources to compliance-related tasks, leaving fewer resources available for other essential functions such as research and development, customer service, and marketing.

Erosion of customer experience: Overemphasis on compliance can sometimes translate into a cumbersome customer experience. Excessive documentation requirements, extended verification processes, and complex procedures can alienate customers and hinder business growth.

Potential for non-compliance: Paradoxically, the very fatigue induced by compliance can lead to non-compliance. Employees overwhelmed by the sheer volume of regulations might miss crucial updates or misinterpret requirements, inadvertently leading to violations.

Financial strain: Complying with regulations often involves significant financial investments in terms of technology, personnel, and training. The continuous demand for resources can strain an organisation’s budget, impacting profitability and growth potential.

Overcoming compliance fatigue: While compliance fatigue poses substantial challenges, there are strategies organisations can adopt to mitigate its impact:

– Risk-based approach: Focus efforts on areas that pose the highest regulatory risks, ensuring that resources are channeled where they are most needed.

– Automation and technology: Embrace automation and technology solutions that streamline compliance processes, reducing the manual burden on employees.

– Clear communication: Establish clear communication channels to keep employees informed about regulatory changes and their implications. Foster a culture of transparency and awareness.

– Training and education: Invest in ongoing training and education to ensure that employees understand compliance requirements and are equipped to navigate them effectively.

– Outsourcing: Consider outsourcing certain compliance functions to specialised third-party providers, alleviating the burden on internal resources.

– Regulatory technology (RegTech): Leverage RegTech solutions that leverage technology, data analytics, and AI to enhance compliance management and reduce the strain on organisations.

In the modern business landscape, compliance is non-negotiable, but organisations must be vigilant about the potential pitfalls of compliance fatigue. By adopting proactive measures and embracing a balanced approach to compliance management, businesses can safeguard their operations, foster innovation, and ensure a sustainable path to growth while navigating the ever-evolving regulatory environment.

Do you have a robust talent strategy in place?

Posted on August 8, 2023 by itsupport

For a company looking to attract funding, there are many criteria they need to be aiming to hit. Many of these are obvious, and long standing, from strong financial projections to a robust business model and customer base – all quantifiable metrics that investors look out for. But, a surprising KPI has crept onto the investor playbook, and that is talent strategy. This includes elements like a company’s culture, how it develops its employees and investment in its learning and development.

Why has this become a focus for investors? The economic instability of recent years has been a major factor. Investors want businesses that have sustainable strategies that are agile and adaptable in the face of change. And a people strategy is vital here, with a company’s resilient workforce being a key element amid economic uncertainty. Let’s take a closer look at the whys behind this emerging priority area for investors.

Prioritising talent
There is an incredibly strong link between how a business manages its talent and how that business performs – this is with regards to output, profitability, efficiencies, and more.

A 2022 study by Cornerstone found that high-performing organisations – defined as those that outperform their peer group – placed greater emphasis on people development. While just 76 percent of low-performing, or laggard, organisations prioritised employee training and development, 96 percent of high-performing organisations did so. The significance? A business that prioritises professional development is one that is going to have more highly skilled employees within its workforce. A more skilled workforce is a more capable, efficient and productive workforce. Employees will be better at their jobs and drive greater success for the business as a whole, further attracting investors as a result.

Another major benefit of prioritising development is the boost it can have on employee retention. After all, if employees feel that their organisation is investing in their growth and prioritising their development, they are more likely to stay where they are. With the costs of hiring new employees costing organisations huge sums a year, avoiding these costs could have a big impact on profitability.
The economic slowdown has left its mark on the global job market. Many companies have even enacted hiring freezes, and in the UK MPs have warned that the shrinking workforce is actually limiting the country’s economic growth. These challenges are being reflected globally.

But investors will still want to see evidence of intelligent talent resourcing within a prospective business. This is where a talent mobility strategy is key. Despite the challenging job market and hiring freezes, the last thing organisations should do is freeze the development and mobility of their existing talent. The potential consequences of doing so are clear, with workers who lack visibility into internal career opportunities within their organisations 61 percent more likely to quit. By contrast, 73 percent globally indicate interest in learning about new roles within their organisations. There is a clear appetite for internal mobility, and so the question becomes: How can companies kickstart talent mobility and incorporate it into their culture?

Unearth internal opportunities at scale
When working to make hidden career pathways and opportunities visible, businesses need to strike a balance between the human element and technology. For instance, employees have shown a strong preference for self-service technology to discover internal mobility options, with an 80 percent higher likelihood of choosing this option over manager conversations. And yet, according to learning leaders, the number one way a workforce has visibility into growth opportunities is through manager conversations.

Technology provides a way for businesses to unearth hidden career pathways and create an internal opportunity marketplace. Through this, employees are empowered with greater visibility into opportunities and with greater autonomy over the next step in their careers. Meanwhile, managers can take on mentoring roles, guiding their teams through career decisions via conversations and training. Companies that prioritise talent management and internal mobility, like DPDHL, have already seen success in filling open positions and mobilising the workforce.

The new fuel of the business world is people, and the skills, knowledge and experience that they bring to the fore. Companies that recognise this evolving landscape, and prioritise their talent management strategy in response to these shifts, will be the ones to captivate investors’ attentions.

By harnessing talent mobility, leaders are equipping their businesses with the adaptability necessary to ride out times of turbulence. It is with this strategy that they will attract new investment and funding.