Tag Archives: Cultural

Formula-One and the Bonus-Culture in Business

Sport is a suitable metaphor for business. Formula-1 for instance offers the reasonable fit in comparing investment banking with sport. ING started to sponsor the Renault team some years before the top of the investment market.

The first parallel is the bonus-culture that link sport (F1) and business (investment banking). There is a big bonus to gain in either market. Only the winner gets the full bonus. The necessary control and supervision is also evident in either market: formula-1 needs control (against spying and fair-play) and the investment banking needs control to prevent (Madoff-like) fraud. Cheating is also part of business, whether it is sport (F1) or investment banking. Investment bankers lie about return on investments, sportsmen lie about drug-use (doping) or about fair play.

The recent incident in the formula-1 is paramount for all this. Last year we could witness some exotics in the McLaren-team. The rivalry between Hamilton and Alonso in the same team. We could all wonder about the level of fair play in the McLaren team. It just like in business. Hamilton was favored by the management of the Mclaren team. We don’t know for sure what happened behind the scenes but we can only doubt whether it was all fair. Alonso left as a gentleman, back to Renault with a less powerful vehicle.

Now less than a year later we are again watching the fair-play in the formula-one, and: “… Lewis Hamilton apologizes after admitting to misleading stewards…” writes the BBC… “It was a huge mistake.”

Maybe it was more than a simple mistake. I would refer to the concept of sound and unsound business architecture. Some people have a beer-belly and (therefore) they cannot run fast. You can tell it from their profile. There is a difference between a bank who makes a mistake and a bank that is based on fraud. In sport this is not any different; there is a difference between a simple lie and someone who is a fraud. That people don’t care to notice and investigate, that’s their problem and part of the financial cause we are now in. Those who are currently blaming the investment bankers of all the fraud and misleading in finance and blaming the bonus-culture, should have a look at the formula-one or any other sport. They work under the same principles.

What’s the lesson to learn from all this?

First and most of all, acknowledging the differences between organizations making a simple mistake and others subsequently misleading clients. Both types of companies exist and clients and investors can tell the difference between either type of company, as long as they observe what is happening. We now have experienced some flaws in business and this will have its effect on organization. Clients and stakeholders will (have to) be more assertive in detecting bad-practices (instead of best-practices) and “inform” the organization about it.

A bonus-culture is not necessarily inappropriate. But it requires control as the chance of fraud increases. Have a look at sports and the affect of (bonus) pressure on the attitude of its players / members.

Jamaica’s Culture is an Interesting Part of Jamaican Life

Jamaican Culture

Jamaican culture is varied because of the mixture of people that reside on it. Certainly many people from different walks of life from different areas of the world have chosen to make Jamaica their home.

In fact the varieties of cultures that now inhabit the island have been doing so for many centuries now. Originally it would have been the Spanish, then the English who brought in Africans as slave labor, now there are people coming from the Middle East and choosing to make the island their home.

Certainly because of the variety of people living on the island they are very happy to discuss subjects which many others would find uncomfortable. The people on this island in fact are very comfortable with regard to any outward racial differences that there are and this is because they understand just how important it is to their islands unique cultural makeup.

One thing you notice about those who are Jamaicans is that they in fact do not take themselves too seriously. In fact there is clear proof of this when they entered a team in to the Olympic Bobsleigh event, even though they had no where that they could actually train for it on the island.

As you will find that language plays a large part in the islands cultural makeup. As you will soon find although English is the islands official language a large number of its islanders will use their own way of talking as well. How they speak actually differs from one village to the next and is a mixture of English, Spanish and African with some Irish, British and American expressions mixed into it.