Having conversation with people in their sixties and over gives you a different perspective to what’s the world today. Those people are my parents. Probably your parents too. Those people still shape our minds and thinking. And we perpetuate that mindset, at least, partially, in our children. Our parents lived a very different world. They could expect their companies to take care of them, or the states. Today companies can’t do that. The states are broke. The average life of a company in the 1950s was just over 60 years. Today it is less than 20 years. In 10-15 years time, this will be below 10… Don’t look at the debt of the states in the 50s and today, or you’ll feel sick. Our parents lived in a world where you could thrive in the corporate ladder. Today, no matter how high you are, that’s the path to fear and insecurity. Your brain is your only weapon. And trust me. You’re alone. No company, no state will save you. Just your brain. And for your brain to thrive, it needs to be filled with knowledge and the feeling of empowerment. Then, it needs do, do and do, to keep learning, and your freedom developing. ​ You can read some of that path in the stories I tell below. ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
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Conflict of interest: A time bomb You can have the best lawyers.The shiniest financial model.The perfect risk matrix. The most balance incentive a.k.a. bonuses program… And still see your project collapse…Because of conflict of interest. Take the Athens ring road extension. During procurement, it turned out that one of the “independent” advisors hired to evaluate bids had close financial ties with a consortium member. Not a minor connection. A proper stake in the game. When journalists...
Yesterday I told you about a KPI regime that seemed a horror story. Today, I bring you another that kills. Kills contract, I mean. I often tell people that vertical PPPs are not my cup of tea. Hospitals… I run away. Too complicated. Too political. Too high stakes. Take the wave of hospital PPPs in the UK during the 2000s. On paper, they looked brilliant: new facilities, modern equipment, long-term maintenance secured. But still… the KPI regime was written by bureaucrats with too much coffee...
Some PPPs die before they start.Others collapse under the weight of construction. And then there are those that rot from within — strangled by their own KPI regime. Take the Peterborough Prison PPP in the UK.On paper, it was innovative: the first privately financed prison with a focus on rehabilitation. The government loved the concept. The innocent believers in human nature wet dreamt about it. The financiers lined up.The operator thought they could make it work… if not, they would still...