Tuesday March, 17th the A/E Business Council hosted a two-hour session titled "In a world of uncertainty and Disruption, which business model is better?"which was delivered by Eng. Izzat Sajdi,
Mr. Izzat Sajdi explained that while forecasting is helpful, one should be very careful about Black Swans. He explained that Black Swans could be positive or negative. A Black Swan is a rare event that has 3 attributes: 1. it cannot be predicted. 2. When it happens, it has major impact and consequences. 3. When it happens, one could see it coming in retrospect.
Mr. Sajdi then went on to explain the big impact of size on the company. With size, there is an accelerating harm. Size is harmful as it causes companies to fail. He explained how could one detect if his company is fragile ie sensitive to size or not. However, he explained the difference between being in a concave or convex business environment and that one should target a concave situation where impact of events would accelerate positively.
Mr Sajdi elaborated on why firms should be allowed to fail by allowing volatility and variability within itself. This determines how well-established and strong a company is, and that every firm should plan very well its model structure..
Eng. Sajdi explained that for a company to gain from disorder and volatility, , it should maintain the following:
1- Do not grow big to the limit of fragility
2- Distribute risks
3- Via Negativa (drop all sort of negativities at your company)
4- Share the loss for ones decisions.
5- Avoid borrowing as much as possible