Machine vs human: Who needs that holiday anyway…

August can be a quiet month. Lots of us are on holiday, many for two weeks, and all at different times. It can feel like there is no-one in the office sometimes.

And, despite our best efforts to move things forward, especially at speed, progress is like walking through mud… yet another delay while we wait for someone to return from holiday and get up to speed again…

Take a break

Of course, we all need to take a break. There is after-all only a week or so left and all will be back to usual.

However, this is also a great time to work on other things too – soft skills, spending time with colleagues, and getting to know them a little better. We need to make the most of this while we can. It is much easier now when things are a little more relaxed and will help, being a better team, once everything ramps up again in September proper.

This is also true for clients, customers and prospects… that is if they are in the office, not running around trying to keep the lights on with everyone else out… although this is a slightly different issue, also something you can also support too, to great relief no doubt!

So this can be a great time to reach out, make contact and build relationships. It all helps to be informed, ready, and able to better support in the future.

So with this in mind I spent the last week or so reaching out to folks and making contact, old and new. It has been a busy time.

However in doing this, one of the things I noticed was around my psychology, especially expectations on speed of response and it got me thinking about how this has changed in our automated, digital world.

I Robot

These days we all like to think we live in a fast-paced world… everything happens at speed and all interactions need to be as instantaneous as possible… and we enjoy it.

Think about Just In Time manufacturing and 24-hour Prime delivery and how popular they are. It is in our psyche.

And this is happening back in the office too… In our relationship with communication, co-workers and processes… speed is king and is what we expect.

I seemed to first notice this with the blinking light on the Blackberry, a new email, and something that needs to be addressed or actioned… and an almost Pavlovian response. But, this behaviour has now also spread to all emails, Teams, Slack, WhatsApp and SnapChat…. just ask any teenager, an instant response is a good response, or at least expected.

So have we been trained and come to expect instant response, by our own machines (and processes)… and on the flip side, do we also now feel the pressure to give instant responses too…?

Not a machine?

Yet, sometimes it is good to reflect that we are not really machines. Not ones engineered to perform narrow processes, made out of metal and plastic, at least.

We like to think of ourselves being equivalent, equal or better to our creations, but at a human scale, things can also take time and in fact we are just different.

I was acutely reminded of this, this week, sending all my emails, calls, invites, LinkedIn posts and interactions. It was easy after all to send lots out (like a machine)… yet the response took time. Some responded quickly, but many took time and the response built over a few days. (Or to explain it in human terms… other people are busy too 🙂 ). Fundamentally this was a human interaction and process…

It was all easy for my brain to run ahead, get frustrated and especially compared to my expectations of response times…

Don’t get frustrated

Undoubtedly our relationships with engineering, computers, and processes have been a marvel of the modern world. It has quite literally transformed our way of living and created the world we live in today. I cannot complain really.

However, by its nature, this also requires very exact, timebound, and transactional thinking. Ambiguity and emotion are easily removed from the process.

In some ways this is the machine’s strength, it keeps things running on time, and if it runs well you simply turn up the speed to increase the output.

However, this is not how we, as humans, work. Trying to keep up can feel like we are on that proverbial hamster wheel – it is trying to live on machine time.

Human brains are complex, organic, massively parallel but relatively slow chemical structures. We have become good at compensating for our lack of raw processing speed by using ingenuity to find shortcuts and underlying mechanisms to understand the world. Just look at our history of scientific theories, maths, behavioural models and even how we create dinner, it is just something we do.

We are good at dealing with ambiguity, and complexity, being creative, considering all the pros, cons, second or even third-order impacts – decisions… Just sometimes this process takes a little longer.

So we need to consider giving ourselves a break, until the end of the summer at least.

Sometimes the quick response is not always the best response and it is worth being patient, letting ideas and relationships mature… naturally… in human time.

Have a good week everyone.

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Let there be music… sparkles and value

This weekend I was formally initiated into the world of music summer festivals.  Maybe it was not seemly to have a 50-year-old heading down the helter-skelter… and at speed, I might add… but no one seemed to mind really.

So it was a weekend of (very) loud music, wearing funky clothes, and eating all the wrong types of food, whilst sitting in the sun (or at least pretending it was sunny).  All in all, not too bad really… and most certainly a different crowd to the financial services and science conferences I normally inhabit.

All of this got me thinking about the importance of getting out of your comfort zone and meeting people from all walks of life. 

Certainly, when I look at LinkedIn, it sometimes feels like an echo chamber. We are all talking about the same things, to the same group of people about the same topics.

Don’t get me wrong, it is great community, support, and yes, all my contacts, and connections matter. It is after all the professional industry I work in…

However what about all of the connection and yet-to-be contacts we don’t know yet… ones where our paths have not yet crossed?

On average we know around 600 people and about 20 of those are close friends.  The world population is now over 7 billion… how many important ideas, new ways of thinking and perspectives are there out there? (even if I just look at other Chris Warburton’s on LinkedIn there are 12 pages of us!).

Now I am not about to have some sort of mid-life crisis, start wearing open-toed sandals (unless paired with white socks of course), and decide that a life in rock and roll is my calling.  

However, when we look at our businesses, customers, and employees, it is really important to understand that not everyone is like us. The world is full of other perspectives and they are valuable, a resource for interesting new ideas and approaches.

In reaching out, we may find gold, new horizons, or just not like what we find, yet gain valuable new perspectives.

By repeating the same pattern and doing nothing new, we are most certainly destined to find the same as now.

And, with nearly everyone online, over 150 countries just a flight away and the ability to quickly translate between languages, the world has never been more accessible. 

Simply sticking to what we know, in our comfort zone, only scratches the surface of possibilities.  Sometimes it is good to do something different.

… now where did I put my comedy glasses?

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All smoke no fire – Consumer Duty?

In case you hadn’t noticed the new Consumer Duty has gone live in the UK. I was away when this happened and since coming back I have been taking some polls around how people feel, 2 weeks in.

Before launch there certainly was plenty of fanfare (and resources to help), a pressing deadline and chorus of doom and gloom above the wrath of the FCA that would descend on August 1st…. yes I was guilty of this too!

However, with hindsight, and as ever with these things, it was just a day like any other. No great activity, no big announcement, just new regulations that simply became new rules.

So was Consumer Duty another Y2K, another GDPR?  and was this, with hindsight, actually just more TCF anyway? (answer… still no)

Consumer Duty – what was that all about?

Well, there is a lot to be said about taking a couple of weeks out to see the bigger picture.  

Sometimes it is just all too easy to be so close to the detail, that we lose perspective on what is going happening at a wider scale and with longer timeframes. Looking back the reality seems to be this. 

Consumer Duty is new regulation. It has been widely trailed by the FCA, so there is no excuse not to know about it.

It is a new tool in the FCA regulatory toolbox, simply giving them new powers, and measures, for enforcement.

Nothing has really physically changed at the end of July and there never was going to be a massive event… just quietly, almost silently, new regulations came into force (yes a bit like GDPR).

These new regulatory tools may not be used today, tomorrow or even sometime soon. But expectations have been set, they will ultimately have far-reaching implications, and it is now fully available if needed…

Martin Lewis, someone never short of a word around Financial Services, I thought had a very balanced comment  “I’m supportive of the principle but wait to see how the reality plays out”.

So even if you are not ready, you know there is more to do, you may still have time.

After all you may not be asked straight away. However, you will need to be ready for when that day comes.

It may seem quiet now, but once the first couple of high-profile cases are raised (after the summer holidays?) it will be back on the board agenda again.

So from my discussions last week… these are the gaps people are working on…

Evidencing good outcomes and MI

Critical going forward and something most firms, if honest, are not really well set up for. There is a lot of interesting work to understand this properly, gather good data, and go beyond the usual quality measures and KPIs being used today (which are not really good enough longer term).

Sludge practices

I always felt the cross-cutting rules were the most interesting area in consumer duty, with sludge practices falling under here. Let’s face it, what was considered, albeit sharp, standard business practice for some will now be accused of being sludge practices (if they are not explicitly already).  Expect this to be a big battleground of change – it will run and run, especially with examples being highlighted in the media – good to get ahead of this one.

Fair Value Assessments

What is fair value, how do we measure this and make sure this is embedded across all products?  Looking at insurance rate increases for example, recently in the news, you wonder if this will evolve into a new lever to control and review prices, at least for regulated firms… and will this will spread eventually to other sectors in light of inflation… food pricing fair value anyone?

Vulnerability management

This, as we know, has been high on the agenda for a while and much good work has been done. However, definitions are aligning, expanding and there is plenty of talk of new areas such as financial vulnerability too… it is becoming ever more greyscale than black or white. Firms are needed to adapt to this, in process and communications.

The world continues to rotate

So in short… the world has not ended, but the hype is over and it is now BAU. Yes it is less sexy, but we are now in day-to-day execution mode and there are still plenty of things to do…  

So, I suppose in between festivals, dodging the rain and the odd vacation it is time to put our heads down and get on with it… some of the elements will be pretty interesting and rewarding to put in (esp the data elements from my point of view), so something to look forward to when we are back.

Have a good week everyone.

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