Dan Davies - "Back of Mind"

Dan Davies' 'Back of Mind' newsletter explores the nuanced intersections of economics, business practices, and management theory with a contrarian perspective. It delves into topics like the British service sector's peculiar strength, the complexity of decision-making processes, the implications of technological advancements in AI and management, and the subtle dynamics of industrial relations. The newsletter employs historic and contemporary examples to elucidate concepts in finance, media, and organizational behavior, advocating for a more reflective and informed approach to understanding economic and business phenomena.

Economics Business Practices Management Theory Technology and AI Industrial Relations Finance and Banking Media Analysis Historical Analysis Organizational Behavior

The hottest Substack posts of Dan Davies - "Back of Mind"

And their main takeaways

bankruptcy for the little people

294 implied HN points • 09 Feb 24
💰 Finance Bankruptcy Debt Legal system Corporations
  1. Bankruptcy rules differ for individuals and corporations, with implications for creditors and stakeholders.
  2. Bankruptcy can have significant economic consequences, especially for employees, suppliers, and other parties dependent on the company's operations.
  3. Some companies without operations can exploit bankruptcy laws to avoid liabilities, highlighting issues with the limited liability system.

le secteur financier n'existe pas

294 implied HN points • 07 Feb 24
💰 Finance Financial system Debt Markets
  1. The financial sector is part of the overall economic system, not a separate parasitical entity.
  2. Financial aspects are present at all levels of control and management in the market economy.
  3. Debt started as a solution but became a problem due to its signal-swamping effect.

the double life of brian

314 implied HN points • 24 Jan 24
💼 Business Consulting Management Productivity Training Industry
  1. Consultants working independently may impact the productivity and training investment within companies.
  2. Substituting consultants for employees can create communication challenges and hinder information flow.
  3. The trend of specialists leaving to start consultancies may reflect underlying issues in British industry and government.
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wind and rain and sun and data

334 implied HN points • 19 Jan 24
🕹 Technology Energy Data Trading Algorithms Regulation
  1. Supply and demand for electricity become more unpredictable with an increasing proportion of wind and solar energy
  2. The profit motive drives the application of information processing power and bandwidth to solve energy planning problems
  3. Market trading and the profit motive are ways to match the variety of the energy problem with the regulatory system

carry on consulting

294 implied HN points • 26 Jan 24
💼 Business Analysis Consulting
  1. The 1970s movie 'Carry On At Your Convenience' offers an interesting but awful look at British class politics and industrial relations.
  2. British industry problems in the film reflect real issues of sclerotic management, militant unions, lack of communication, and reliance on hard currency export markets.
  3. The British miscellaneous professional services sector may have stemmed from individual solutions to underlying institutional problems.

irritating arithmetic

176 implied HN points • 31 Jan 24
💰 Finance Banking Regulation Risk management
  1. Marginal costs and risks don't add up to the total, causing problems in decision-making.
  2. Regulatory capital requirements are not usually binding and can be misleading in banking.
  3. Banks often rely on regulatory handbooks instead of thorough internal risk assessments.

eisenhower as cybernetician

373 implied HN points • 30 Jun 23
🕹 Technology Cybernetics Decision-making Information Technology Computers
  1. Dwight Eisenhower highlighted the importance of maintaining balance in national programs and between private and public sectors.
  2. There was a new decision-making system created by the conjunction of military and industrial establishments.
  3. The warning was given that this system could generate outcomes not necessarily desired, seek growth, and be influenced by technological advancements.

a horror story in four words

393 implied HN points • 16 Jun 23
💼 Business Finance Real Estate Valuation Banking Market
  1. The concept of 'change of valuation basis' in business can indicate stress and financial strain
  2. Valuing buildings can vary depending on the purpose, whether it's for selling, lending, or immediate sale
  3. Understanding 'change of valuation basis' sheds light on liquidity, solvency, and the socially constructed nature of financial reality

industrial decisions

393 implied HN points • 19 Apr 23
💼 Business Decision-making Industrialization Management Efficiency
  1. Industrial decisions involve standardization and division of labor to optimize efficiency.
  2. Industrializing decision-making processes can lead to increased efficiency but also create templates for fraud.
  3. Not all decision processes should be industrialized; monitoring and flexibility are crucial for long-term success.

plumbing is not architecture

255 implied HN points • 05 May 23
🕹 Technology Systems Change Agency
  1. Plumbing can be changed, unlike architecture.
  2. Systems, like plumbing, have the ability to reorganize to maintain stability.
  3. Attempting to change a complex system through its 'plumbing' may not be effective.

dancing martial arts masters of the bicycle factory

216 implied HN points • 31 May 23
💼 Business Management Organization Restructuring Production Assembly
  1. Assembling a folding bicycle involves over a thousand components and skilled bike builders for final assembly.
  2. Piecework payment system led to highly skilled assemblers who could work at incredible speeds.
  3. Transitioning to a production line system from piecework can be culturally disruptive and challenging, impacting the identity and skills of employees.

stuck in the moat

235 implied HN points • 12 May 23
💼 Business Economics Management Productivity Competition Monopoly
  1. The concept of a 'moat' in business, popularized by Warren Buffet, has been misunderstood and misapplied by many.
  2. The original idea behind a 'moat' was to protect a business's unique advantage, not simply to create barriers through legal means.
  3. The focus on 'moats' led to a shift in management attention towards maintaining profits through artificial means rather than product improvement.

the tragedy of fox

235 implied HN points • 31 Mar 23
  1. In news media, people want to be told they're right by a credible source, not just hear what they want to hear.
  2. Media outlets adapt their content based on the intelligence and awareness of their audience.
  3. Media shapes audience preferences and is skilled at selling without appearing to sell.

goodhart in the youth club

216 implied HN points • 26 Apr 23
💼 Business Decision-making Information processing
  1. Decisions about people will always involve unique cases that don't fit neatly into data sets.
  2. Industrializing decision-making processes can be efficient but may introduce bias and fail to capture complex information.
  3. Including qualitative data like the impact of funding youth clubs in accounting systems requires careful consideration to avoid distorting measurements.

history is the bygone which won't stay bygone

1 HN point • 05 Apr 23
📖 Philosophy History
  1. Learning lessons from history involves choosing relevant examples, extracting principles, and applying them to current situations.
  2. Markov chains can simplify processes by removing path dependence and making analysis more manageable.
  3. History can be like unobservable states in a system, helpful for understanding the present.