Organizational culture, high liquidity, customer relationship management, investment risk portfolio… these are the rephrased words from this week. By visiting four different-type, established financing and management consultancy firms, we got understood how such companies are operating on their daily duties and managing to redistribute or create the social wealth. And particularly we know, what is the world of money like.
Here are a few golden rules when one enters this world. First, be comfortable with uncertainty. Finance and investment involves uncertainty, and the one who engages with financial or management companies should have a nonlinear thinking mode to understand the picturesque changes of the future, but not necessarily on peculiar portfolio or market. Second, behavioral uniformity is important. Although human civilization has been developed for thousands of years and technology advance has significantly changed the social infrastructures, human basic behaviors and psychological modes have not been changed very much. In the financial corporations, behavioral integrity and standardization are still the key elements to data management, customer relationship, and investment forecasting. Third, finance is a science on basis of art, or verse visa. Although based upon analytical results of the data, finance conclusions can be driven in different directions by occurrence; the concurrent scientific methodology is rather a tool to understand better different markets and consumers’ behaviors. After all, the world of money is the world of human.
One speaker this week talked about the relationship between the past and future. Past is where we collected data, and future is where we will collect data. In light of high liquidity and high uncertainty of the market, investor should always prepare alternative solutions to meet up the unexpectedness.
Another takeaway is that big finance or consultancy firms can always have excellent organizational integration. In the headquarter of Bloomberg, the glass-wall, circled big building has been separated into different functional floors and zones that are organically interconnected and interoperated with great efficiency. As metaphorically quoted by the speaker in Rudin Management, “smart” building run by “central brain” delivers greater enegitical and organizational management efficiency.
Although I missed last Friday’s visits, I think that Ernst&Young and NAQSDA also represent high liquidity, business standardization, and organizational efficiency. In these firms, time value of money rises up linearly and embeds dynamic capability for agile translation in future changes.