Stories and conversations off the street: Experiential learning on structuring - Series 1

There are compelling anecdotes (and stories) that I have learnt and experienced in my professional life so far that has captivated my mind and also effectively captured a business situation. 

These anecdotes have provided a strong and sustainable foundation for an on the job experiential learning and its application for  high performance,  critical decision-making, problem solving, to communicate and mentor and build sustainable business and teams.

Structuring:

• The sum of parts is more than sum of whole. A dead elephant is worth more than a live; clear the clutter and the rot. Analyse, re-engineer, learn and unlearn, create and re-create. Attention to detail, commercial viability, foresight and risk analysis precedes a successful structure.
• Smart deals go beyond numbers! What matter is the synergy, risk management, customer needs, commercial considerations, market insights, reputation and reliability, humility, culture and people. Plant trees to grow a forest; strong foundations help build a solid and viable business.
• We need to remember that there is no rocket science in all business unless it is technical and resource intensive or regulated. People, culture, resources, work ethics and management makes the difference.
• Keep it simple, build with a focus on human and it will succeed! All we all are in an human capital business. Simplicity is scalable and sustainable as it is human and execution friendly. What is made to seems complex is in fact "simple". 
• "Brokerage", "reputation and credibility" and "bankruptcy remoteness" are some of the best lens to validate and perceive structures and investments; it provides an unbiased and independent investor, customer, and market insight on risk, return, viability and sustainability.
• Diversity of ideas and thought and inclusiveness is essential. Seeking and incorporating comments from legal, tax, risk and operations make good structures. 
• There is no room for complacency so dive deep; the best jewels are in the depth. 
• Answers are as good as the questions. Forecast, decisions and judgement are as good as the assumptions, models and data.
• Inefficiencies in capital markets creates arbitrage opportunities; markets moves faster than governments, companies and policy implementations. 
• There are vital market insights and clues in competing and complementary products, market or structures. 
• Credit, settlement, custodian or residual risk is inevitable in all transactions whether performed manually or electronically. 
• The 'power of finance' can move corporates, ethics and values - tread carefully.
• Everyone cries foul when they lose money; recorded or documented disclosures help them remind their decisions and risks. Disclosures mitigate residual and reputation risks. 
• There is a 50% chance to success or failure in any venture or hiring  people. Good human capital, systems process and culture increases the probability of success. Culture, process, patience, perseverance, and tolerance is essential for any business to succeed. 
• Risk is money. Identify and assume calculated risks, money will arrive.
• All trades and business must be sustainable in the long run to provide an annuity however one-off trades fill spare capacity. 
• Information and education is money. History, geography, culture, weather and academics are a good starting point and a good guide. Learn and unlearn from success and failures of your self and others.
• Expand the pie and create more opportunities. Ensure people stay together and help each other to score a common goal.
• Arbitrages don't last long but they keep coming! Be prepared and patient like an angler, success will follow. 
• Customer is the king! Customer insights and behaviour provides valuable information for innovation, high performance and our bills which is why all companies say “customers first”. 
• We are kings in our office but a nobody with the customer. Customer will always give a very positive and unbiased feedback on the product or service or business viability. Customer interactions teach us humility and resilience and also make us better performers. 
• An office (and the world) is a laboratory; there is so much to learn and unlearn, connect dots and help others.
• Never take things for granted; what you see is not what it is and what it seems is not what it is. Challenge and validate.
• Governments and many monopolies (or variations) are inefficient and bureaucratic which gives rise to arbitrages.
• Commercial decisions and predictions are as good as the analyst, assumptions, facts and information. 
• Nothing can replace a good meeting. Bloomberg, Reuters and Google are some good tools for gathering and validating information.
• The most difficult puzzle or questions can be solved by asking "why, what, when, who, how, how much..." When in doubt or solving a mistake, prefer 'prognosis' over 'diagnosis', look at symptoms, causes, process and  human psychology for answers.
• Common sense is uncommon!
• There is consistency in madness. Look for trends, common traits and behaviours,  history, and changes to underlying variable.
• The final test of a good structure or investment is bankruptcy remoteness (no claw back), reputation, scalability
• Everything is up for sale
• How, why, where, when, what, who, why not - answers all questions.
• No idea is a stupid or a bad; the best solutions come from stupid ideas that are debated intensively without personal vendetta.  

to be continued and expanded