Tag Archives: BCG

Want a cake? Buy a bakery!

There was a man (not me) who loved cakes so much (definitely me) that he decided to buy a bakery (not on my income), so he spend £1,475,000 and now he has a cake every day until he dies, and that was the happy ending, or was it?

Consider that at the Cake Store, an outlandishly super cake (birthdays) from £45 onwards (up to £850) which will give you colour choice for inscription, 4 levels of cake (the 4th being a Rubik cube cake), choice of filling and selections of candles and sparklers. So it does not get any better than that. Yet we all agree that the most expensive cake is not a daily choice, anything below that tends to be around £100, so a fair cake and there plenty of cakes are 16″ and a mere £69. So at that stage we see that the man paid upfront for 19,666 cakes, implying that he will have a daily cake for 53 years; and that is when we ignore the interest he could have gotten on the £1,475,000 which in an optimum stage is interest that pays for 983 daily cakes a year, we call that a bad choice when the goal is to have cake every day. Now when it is about government policy it is not that simple.

And this gets us to the actual story, the fact that the Guardian gives us: ‘Government spends almost £100m on Brexit consultants‘ (at https://www.theguardian.com/politics/2019/may/29/government-spends-almost-100m-brexit-consultants), I get that consultant might be needed to some degree, but Brexit is something new, so how would they know? Yes, I very much understand that one of Deloitte, PricewaterhouseCoopers (PwC), or Ernst & Young was needed, but all three? Even if that was the case, for example manpower, the issue is not merely the £100 million; it is the stage of what knowledge did these civil servants not have?

Before we go bashing civil servants left, right and centre, we need to acknowledge that you want consultancy to some degree on international tax issues, on international legislation, yet is that knowledge not available within the government? We apparently have Law lords, we apparently have treasury and tax experts and the fact that they came up short by £100 million in knowledge is a much larger issue than I am happy about.

The fact that the end of this is not near, a premise we see with: “Marked “official sensitive”, the investigation warns Whitehall spending on Brexit consultancy work could hit £240m by 2020, as officials scramble to plan for departure from the EU” should be a larger concern. Then I notice a name which I have stumbled upon. With the mention of the Boston Consulting Group (BCG), I go back to ‘The Repetitive Misrepresentation‘, A May 2016 story (at https://lawlordtobe.com/2016/05/28/the-repetitive-misrepresentation/) where I stated: “The quote in the Business Insider gives you “I got the analyst who wrote one of the reports on the phone and asked how he got his projections. He must have been about 24. He said, literally, I sh*t you not, “well, my report was due and I didn’t have much time. My boss told me to look at the growth rate average over the past 3 years an increase it by 2% because mobile penetration is increasing.” There you go. As scientific as that“, this was at the core of the issue I had with PwC earlier. The final Gem the Business Insider offered was “They took the data from the analysts. So did the super bright consultants at McKinsey, Bain and BCG. We all took that data as the basis for our reports. Then the data got amplified. The bankers and consultants weren’t paid to do too much primary research. So they took 3 reports, read them, put them into their own spreadsheet, made fancier graphs, had professional PowerPoint departments make killer pages and then at the bottom of the graph they typed, “Research Company Data and Consulting Company Analysis” (fill in brand names) or some derivative. But you couldn’t just publish exactly what Gartner Group had said so these reports ended up slightly amplified in message; even more so with journalists. I’m not picking on them. They were as hoodwinked as everybody was. They got the data feed either from the research company or from the investment bank“. This all from an article in The Business Insider from February 18th 2010! (Yes, more than 6 years ago).” I am not stating that BCG did anything wrong, illegal or immoral, I merely wonder how they got their numbers, Brexit is an unseen event and there are no scenarios that fit the bill, so how were their results gotten (or is that begotten?); these are questions that reside with Bain & Company, as well as the BCG. PwC is not out of that firing line, it is for the most only Deloitte who gets a pass (based on previous work), as well as some of the people I know (from) there.

If there is one part I get then it is the entire Defra mess (mess still an optional word). The Department for Environment, Food and Rural Affairs has to deal with all kinds of legal and policy issues that have never been transparent, I would be surprised if there is not a whole range of other issues floating up from there in regards to food matters from all over Europe (France being an obvious first). An example that was seen last year when those reading Wine magazines were introduced to: “It’s made from outlawed jacquez and herbemont grapes, he explains, and is produced by a coop of rebellious vignerons in the Ardéche region of southern France.” Wine that is banned by the EU, so that is one part that Defra might not have been prepared for at present and that is merely a top line result I looked at, when we start looking at the Romanian Equine Beef Burgers the matter becomes truly adventurous. None of it is the fault of Defra mind you, merely the stage in which they find themselves at.

That also raises the issue seen with: “Whitehall report criticises departments for lack of transparency“, at that point, what are the chances that the Border Delivery Group with £10.2m and Defra with £8m have been doubling up on data and reports? More important, if they are from different sources, the data will not match and cannot be compared, or better stated, until the questions and data are not rigorously inspected, there will never be a way to tall on a few levels how valid and optionally how replicated the issues are. There is clear overlap between the two, yet the lack of transparency implies that they are not aware of each other’s work until the final report was handed to all the players.

In addition when I see: the DHSC employed Deloitte for “management support … in ensuring the supply of medical devices in case the UK leaves the EU without a deal”“, questions are shaped in my mind. I get it; there are questions, very valid questions. Yet in all this, Philips Healthcare has 6 locations in the UK, the same for Siemens Healthineers UK. So suddenly they would not be able to provide? They had their tax breaks for decades; as such they are responsible for delivery. It is time to look at these places and see just what tax breaks they got and hold them accountable (to some degree). I am merely mentioning two elements, there are many more where they had the deductibles and now they would walk away? Did the Department of Health and Social Care ever look at that part of the equation? Because if these people ‘walk away’ we can undo these tax breaks immediately, for the next decade or two.

It could be my version of ‘the sun also rises’.

It all comes to blows when we see: “But the report says it has taken an average of 161 days for basic details of Brexit consultancy contracts to be published, compared with 83 days for all consultancy contracts“, the fact that details are withheld for almost 6 months, beckons the question, was that before or after the contract was signed? In addition to this, when we look at “In February, analysis found government and public sector bodies had awarded contracts worth £107m for “professional services” in relation to Brexit planning. Tussell, a private firm that analyses public contracts, said the figure included 28 consultancy contracts worth nearly £92m.” gives me the questions on how much Tussel costs to check all this and are these contracts checked for doubling up, or are the merely checked for validity, hours versus billed, as well as how the contract was set up and what was required to be delivered? Merely the basic stuff and as such, as these contracts are compared, will I find a doubling of data as similar questions are to be answered?

Even as I partially agree with the government spokesperson giving us: “It is often more cost-efficient to draw upon the advice of external specialists for short-term projects requiring specialist skills. These include EU exit priorities such as ensuring the uninterrupted supply of medical products and food to the UK.” I do end up with questions on the arrangement of short term contracts and the fact that the treasury coffer is now out of £100 million. The fact that we see ‘such as’ is also a problem, the people were so over the moon on being a member of the EU, the fact that the government never looked at contingency issues within any government since the UK became a member of the EU is also a failure on several levels, especially when we consider the fact that this looks like an impairment of national security (or is that on levels of national security) whilst we see unproven Huawei accusation left, right and centre, an issue that does matter as you are about to find out.

The Washington Post gave us two days ago (at https://www.washingtonpost.com/technology/2019/05/28/its-middle-night-do-you-know-who-your-iphone-is-talking) ‘It’s the middle of the night. Do you know who your iPhone is talking to?‘ with the added: “Our privacy experiment showed 5,400 hidden app trackers guzzled our data — in a single week“. It relates in a simple way, we accuse Huawei whilst apps are according to the Washington Post: “On a recent Monday night, a dozen marketing companies, research firms and other personal data guzzlers got reports from my iPhone. At 11:43 p.m., a company called Amplitude learned my phone number, email and exact location. At 3:58 a.m., another called Appboy got a digital fingerprint of my phone. At 6:25 a.m., a tracker called Demdex received a way to identify my phone and sent back a list of other trackers to pair up with. And all night long, there was some startling behavior by a household name: Yelp. It was receiving a message that included my IP address -— once every five minutes.

It seems that there is a flaw, not merely in transparency and regarding the consultancy groups, there is a flaw in the way we think, the government is set to a stage, what would we have to do, whilst the tax breaks have been ignored to the stage where companies have a responsibility to deliver, which of these reports takes a look at that part and when we see that Apple did not do enough, when we are told that the user should not have installed a certain app, the fact that the app should not have been allowed in the apple store (or android store) is equally a setting to look at, the lack of transparency implies that this was not done, not once.

So when we divert (for a moment) to: “According to privacy firm Disconnect, which helped test my iPhone, those unwanted trackers would have spewed out 1.5 gigabytes of data over the span of a month. That’s half of an entire basic wireless service plan from AT&T.” I made a similar mention in January 2017 (at https://lawlordtobe.com/2017/01/30/taking-xbox-to-court/) where in ‘Taking Xbox to Court?‘ where Microsoft uploaded almost 6 GB in a fortnight whilst playing single players games. The fact that Microsoft hid behind: “we have no influence on uploads, that is the responsibility of your ISP!“, as response the Xbox helpdesk (read: party line) that their support gave me when I called still makes me angry. But now it is not merely consoles, it is happening all over the place and the government either does not care, or has no clue, so when we see ‘privacy’ driven issues, I wonder who they are trying to fool. Especially when I was confronted with ‘possible civil contingency need‘, there are optionally so many contingency needs transgressed upon (as I personally see it), how about recognising that in all the elements clear transparency was an essential first, the fact that the large players are not willing to be transparent, we see a much larger issue all over the place.

Even as part of one of the DHSC reports gives us: “It is difficult to prepare detailed predictions or plans for such unpredictable concerns“, so if we see the impact of ‘unpredictable concerns‘, at what point do we ask more serious question on where the foundation of £100 million came from? And it is not merely the spending, those who asked the questions and the exact questions themselves would also need to be scrutinised, because the private firms merely facilitated and they did nothing wrong, the other side needs to be looked at, to a much higher degree than ever before.

Now consider a paper by DLA Piper (at https://www.dlapiper.com/en/uk/insights/publications/2019/04/no-deal-brexit/data-protection/) only a month ago where we see: “UK data protection law is governed by the General Data Protection Regulation (GDPR), which came into effect across all EU member states (including the UK) on 25 May 2018, and creates a harmonised legal framework regulating the way in which personal data is collected, used and shared throughout the EU. Should the UK leave the EU, the GDPR will cease to have direct effect in the UK. However, as the UK is committed to maintaining an equivalent data protection regime, a UK version of the GDPR will effectively apply following the departure date (exit-day)“. This is fair enough, yet as the Washington Post two days ago and I was able to show (850 days ago) that the collection of personal data is already off the wall, so at what point will we see recognition that the point of no return was passed a few hundred days ago?

So at what point are there questions on DLA Piper (who did nothing wrong) regarding; “The GDPR imposes restrictions on the transfer of personal data to a ‘third country’” and as the Washington Post gives us an iPhone example, we see that Huawei is clearly 0% guilty in that part, so how is the entire: ‘President Trump is clueless on true national security in the first place‘ not directly on the mind of all, especially when the transgressions are seemingly global. Perhaps when we realise that these are American Apps there is optional no national security infringement and privacy is merely a concept for all the players of that issue in town. At what point will the UK realise that they have much larger issues?

Even as there is complete acceptance of: “It is important to be aware that SCCs cannot be used to safeguard all transfers – for example SCCs do not exist for transfers between an EU-based processor and a UK-based controller (ie where a UK controller hosts personal data with an EU processor). This is a known area of risk to regulators, which impacted organisations may decide to ‘risk manage’ where data repatriation is not a realistic options“, I am willing to state that not only is ‘data repatriation is not realistic‘, it was not an option well over two years ago and the loss of data  (read: data copy transfer) under 5G will merely increase by a speculated 500%.

It is the realisation of these elements where we need to revisit: ‘those who asked the questions and the exact questions themselves would also need to be scrutinised‘.

I wonder if that was done and more important to what degree. We can agree that investigation on what might happen might have a steep price, I get that, yet overall there are larger issues regarding the exact question what was asked, the model, the data, the collection and the integrity of data regarding the question that needed to get answered. I wonder (because I actually do not know), how far did Tussel go regarding that part of the equation?

So how did this get from a bakery cake to 4G and 5G privacy?

It is about the cost of doing business, not merely the stage of prepared for what comes next and I feel that in light of what we are shown by the Guardian, the ‘cost of doing business’ and the ‘next stage of enterprising’ is not aligned, when we realise that there is a large non-alignment of issues, how large is the gap in these reports, not merely on legislation and policy, but on operational levels that will get hit first. The DLA Piper part makes perfect sense, yet when you realise that the mobile application status is already nowhere near it needs to be, how useful is the DLA Piper part, which is technically speaking flawless? When we see that part of non-alignment, how many reports costing £100 million have an operational discrepancy when tested to the actuality of the events?

In equal measure we get the additional question, would transparency have solved that, which is likely to give the answer that require us to take a hard look at those phrasing the questions. One led to the other, and I merely looked at the digital part, when we look at actual shipping (and ships), we see the realisation that the UK is still an island, one tunnel does not solve that, how do we see the filling of the prospect of the danger that a lot more contingency plans are missing, not because of Brexit, but because they already should have been there, the IOS data tracking part is evidence of that.

 

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The Repetitive Misrepresentation

This was the first though in my mind, when I was confronted with ‘Leaving EU ‘could cause catastrophic worker shortages’‘ (at http://www.theguardian.com/politics/2016/may/27/leaving-eu-could-cause-catastrophic-worker-shortages). As I see it, the first issue I would like to address is ‘Which Think-tank?‘ That issue is seen not just there. We see this overwhelming reports of what I regard to be blatant misrepresentation in many places. I personally just tend to read the Online Guardian first because in many regards they are really good.

My issue is with Social Market Foundation think-tank. You see, how on earth did they get to that number? What constitutes their evidence for the quote “the 1.6 million EU workers in the UK“, perhaps it is the 1.5 million illegal immigrants and out of millions perhaps 100,000 actual issues? You see, we do not get the actual facts, because other data (incorrect data) is thrown in-between. It gets even worse when the Guardian starts quoting Pricewaterhouse Coopers with “According to analysis, by accountancy firm PwC, 950,000 jobs could be lost as a result of leaving the EU“.

It gets even worse when Seema Malhotra stops being quiet. Now, let’s be clear, I have no issue with politicians who talk, even if they are in the opposition. I would just prefer them to be distinct, correct and precise. The quote “Seema Malhotra, the shadow chief secretary to the Treasury, highlighted the 240,000 EU workers in the UK public sector and argued Brexit could be “catastrophic” for the NHS and other public services“, is an issue on many levels, most of them equally disastrous to say the least.

Almost lastly there is Sir Richard Leese, who treats us to: “pulling out of the EU would be a “hammer blow for the public sector” and cause “chronic staff shortages, damaging the services that British people depend on” Really? Which public sectors? Which services?

Now lastly we have Adam Hawkins, director at Adecco. He co-authored the Social Market Foundation report and gives us: “Under a scenario where free movement of labour no longer applies and EU workers were subjected to the same visa requirements that are currently in place for non-EEA workers, 88% of EU workers currently working in the UK would fail to qualify”. To Adam I would prefer to quote: “73.6% Of All Statistics Are Made Up“, which we get from (http://www.businessinsider.com.au/736-of-all-statistics-are-made-up-2010-2), an article by Mark Suster. I personally thought it was only 32.544%, but I know I could have been wrong in this instance. In the article we get “the quote most attributed to the Prime Minister of Great Britain, Benjamin Disraeli, “there are three kinds of lies: lies, damn lies and statistics.” The quote is meant to highlight the deceiving but persuasive power of numbers“, which is at the core of the matter, which is of course beside the fact that 10+ years at SPSS showed me a thing or two regarding papers that have been broomed under the closest rug as soon as possible. The quote in the Business Insider gives you “I got the analyst who wrote one of the reports on the phone and asked how he got his projections.  He must have been about 24.  He said, literally, I sh*t you not, “well, my report was due and I didn’t have much time.  My boss told me to look at the growth rate average over the past 3 years an increase it by 2% because mobile penetration is increasing.”  There you go.  As scientific as that“, this was at the core of the issue I had with PwC earlier. The final Gem the Business Insider offered was “They took the data from the analysts.  So did the super bright consultants at McKinsey, Bain and BCG.  We all took that data as the basis for our reports. Then the data got amplified. The bankers and consultants weren’t paid to do too much primary research.  So they took 3 reports, read them, put them into their own spreadsheet, made fancier graphs, had professional PowerPoint departments make killer pages and then at the bottom of the graph they typed, “Research Company Data and Consulting Company Analysis” (fill in brand names) or some derivative. But you couldn’t just publish exactly what Gartner Group had said so these reports ended up slightly amplified in message. Even more so with journalists.  I’m not picking on them.  They were as hoodwinked as everybody was.  They got the data feed either from the research company or from the investment bank“. This all from an article in The Business Insider from February 18th 2010! (Yes, more than 6 years ago).

There we have the initial goods, now we need to take a step back.

You see, in my article ‘Is the truth out there?‘ (At https://lawlordtobe.com/2016/03/21/is-the-truth-out-there/), I respond to the initial CBI report, where I saw a decent amount of gaps. Gaps that require the raw data to confirm or deny. Yet, as we all know, that is a part we do not get access to. Still, there was enough ammunition to counter certain statements, which I did. So when we get the little blue snippet on the left by the Guardian in so called ‘support’ we see that one part is the juicy bone that is a figment of illusionary support, yes it was not a helpful snippet at all.

The next part is the article as a whole by Rowena Mason. As she surfs from emotional statement to emotional statement, we see an article that is pretty much devoid from quality data, as such the quotes become nothing more than hollow phrases, no matter how distinguished the people are (or in this case, the one person Sir Richard Leese is). In this case in view of his deeds he should be offered another view, yet in opposition as a former Math teacher he should know better. His statement might not be wrong (might being the operative word), without clear data and clear supporting evidence the statement is like most hollow. This part intersects with the voiced quote Seema Malhotra made (the one person who was better off remaining silent). So why am I stating this?

Where is my justification?

Let me show that part right now. You see, in her quote she linked 240,000 EU workers and the NHS. A blatant misrepresentation to say the least. When we look back to the article I wrote titled ‘The News shows its limit of English‘ (at https://lawlordtobe.com/2015/06/22/the-news-shows-its-limit-of-english/), almost a year ago. I looked at a similar statement. In there, based on CLEAR immigration documentation as stated in Appendix I and J (both documents are in my article at the end). Documents on the GOV.UK site. We see that “Pay requirements which the Secretary of State intends to apply to applications for indefinite leave to remain from Tier 2 (General) and Tier 2 (Sportspersons) migrants made on or after 6 April 2016” has clear parameters and as such, no NHS worker (Nurse or Doctor) would be at risk. We acknowledge that the NHS is more than that and in that case we see that section 245HF of that document shows that the bulk of tier 2 workers are all covered in that case. So we see the intentional creation of chaos, whilst there is none at all. It is of course very possible that the shadow chief secretary to the Treasury might be non-competent, and as such the question becomes whether she should have accepted her present position or would have been better of working in a hair salon (OK, that’s me just being generically mean).

All this feeds back to the article of Rowena. The collection of emotional responses in perhaps ‘feigned support’ of the Bremain team has only shown that the stated support elements are non-issues, or too generic to have any actual value. In addition, as we consider the immigration documentation, especially in light of appendix J, which has over 125 pages of definitions of these jobs, with on page 4 an essential element: “In all cases, the pay must be compliant with National Minimum Wage regulations“, which should not be an element at all. So when we consider the massive list of options and people that have options to get work permits, can we agree that the statement by Adam Hawkins, director at Adecco, with his “88% of EU workers currently working in the UK would fail to qualify” has been blown out of the water with clarity and conviction?

All elements that have been clearly known from before June 2015, all that information easily available. This leaves us with an article that has lost most of its value by trying to appeal to mere emotion and give false paths to the people who are uninformed. Where is the value in that?

I have been in the Brexit field for a long time, my sway to the neutral field was not easy, it was not done by misinformation. It was done by clear information through Mark Carney, governor of the bank of England. I have not landed in the Bremain field however, he did achieve that I am not as convinced of Brexit as I was. The remaining elements are not within the UK, they are with the elements outside of the UK, mainly the irresponsible spending of the other treasurers as well as the action of ECB Chief Mario Draghi, actions that I personally (as a non-economist) regard to be short-sighted. That part is equally important, you see what I consider to be a bad idea might not be a bad idea in the eyes of an established economist. I do not believe that I have all the knowledge, all the values and insights, I always question mine. You should question yours if you will ever make an informed decision regarding Brexit.

This gets us to the last part in all this.

The article that involves Marky Mark of the British coin. The article ‘Mark Carney denies Brexit bias and Goldman Sachs influence in heated exchanges with MPs‘ (at http://www.bmmagazine.co.uk/newswire/mark-carney-denies-brexit-bias-goldman-influence-heated-exchanges-mps/), his response was ‘Wow’ and so is mine. I went over the Lords statement and there was nothing out of place here. I might even commend him on remaining slightly conservative in the risk as he mentioned them. The quote in this article is ““Can I just give you the opportunity to refute any suggestion that Goldman Sachs may have put pressure on you?” Baker asked during the testimony, which lasted more than two hours and was dominated by Brexit“. Here we see Steve Baker, co-chairman of the Conservatives for Britain group. A man with a personal agenda, which is not the most reliable accusing voice in all this. From what I have seen and read over the last year, I have a lot more faith in the information that the Governor of the Bank of England brings us, than the opposing voice of Steve Baker. In this I stand with BT Group Plc Chairman Michael Rake who stated in a Bloomberg article (at http://www.bloomberg.com/news/articles/2016-05-26/-no-doubt-leaving-eu-would-hurt-u-k-economy-bt-chairman-says) “it was “deeply depressing” that a Conservative lawmaker, Steve Baker, asked Bank of England Governor Mark Carney this week in Parliament whether his former employer, Goldman Sachs Group Inc., had put pressure on him to warn of the risks of leaving the EU. “Trying to undermine reputable individuals, reputable institutions, that are simply trying to get the facts about the economy across to the British people in a critical referendum, a critical moment in time, is disappointing””. I personally believe to be worse, in this Steve Baker moved from being a possible political player on the conservative field into a place where he can be ridiculed and soon to be regarded as a mere memory in the political arena. I have opposed the view of Mark Carney more than once, but always as a question, always in regards to choices, never as any indication that the former Governor of the Bank of Canada and the current Governor of the Bank of England was in the pocket of Goldman Sachs. His statement and the cautiousness of the statement in the House of Lords is clear indication that he is not in the Goldman Sachs pocket.

Repetitive misrepresentation by too many players is muddying the water of those trying to make an informed decision and as such the voters are likely to get less and less information over the next three weeks. In this regard the press isn’t helping too much either.

 

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