Whether considering entire national economies, financial markets, or individual companies - the following four principles always apply:
- Complexity: Economies and societies are of multiple natures - being mathematical, psychological, and economical systems at the same time. Interdependencies between these natures are complex and surprising.
- Interdependence: Economies and societies are composed of clear sub-systems, which can be comprehended intuitively. These sub-systems communicate with each other only partly and temporarily but speak the same language.
- Dynamics: Companies and societies behave calmly only during certain phases - crises are inherent to these systems and forecasts are often impossible. However, one thing is clear: what increases efficiency under normal conditions also increases instability during crises.
- Stability: Societies and companies are successful in the long run if they manage to behave calmly and stable in their core areas, but keep a certain level of flexibility. The three pre-conditions to achieve this are creativity, solidarity, and prudence. Creativity requires well-educated people and an organization being sufficiently flexible. Solidarity of the stakeholders calls for identification, which will only evolve on the basis of “organizational justice”, which itself is founded on trust. Prudence is reflected in a reasonable diversification of products, markets, and funding sources, small leverage and sufficient reserves. With this basis, we have already arrived at an instruction manual for dealing with economic crises and, even better, for avoiding these crises…
Following the presentation participants will be able to raise questions and discuss related items. Snacks and refreshments will be provided.