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The following articles were authored by John Persico

The case for Financial Contractors on transactions

By John Persico on August 19, 2012

“We expect that at least one-third of the global workforce could be hired online by 2020 — we’re witnessing an incredible change take hold: In the future, we will all be managers” [1]
 
Gary Stewart (CEO Odesk) begins to paint a dynamic – and somewhat frightening – picture of the potential rapid changes to the future global workforces over the next decade.  With over 63% of the world’s GDP delivered by services[2] – the impact will no doubt be profound and far-reaching.
 
Many of the largest professional services firm – like KPMG[3] – saw the same potential for an improved delivery models (including Knowledge Process Outsource) over the past 5 years[4]. New consulting and advisory models have recently emerged into mainstream brands – including Eden McCallum (UK), Business Talent Group (US) and Evisors (US) – which re-configure the value proposition of consulting and professional services.  Deloitte’s Centre for the Edge continues to push the exciting boundaries of professional services – especially crowdsourcing, talent management and enhancing performance [5].
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The decade when Small Business became King

By John Persico on March 5, 2012

We might remember 2012 as the beginning of a golden decade – the era that small business value creation became easier and more abundant in driving Global GDP. There has been no better time to own, start and run a small business than right now. Particularly online businesses. The economics of the internet has profoundly closed the resources gap between the haves and have nots. With cheaper and more accessible technology combining with an emerging global middle-class of several billions (e.g. China, India, Indonesia, Brazil) – it should be unsurprising that small businesses will play a more active and vocal role in the global business policy agenda in the decade ahead.
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Power of informational goods marketplaces

By John Persico on December 21, 2011

Pervasive informational goods marketplaces

The online world continues to unleash an immense innovation machine where anyone, anywhere can create, share and add economic value through informational goods such as software, videos and music. In simple terms, an information good is a type commodity whose main market value is derived from the information it contains.  Extensive academic literature has been written on the subject, its behaviours and unique properties.[1] Informational goods typically exhibit several key economic value characteristics. Namely they are:

1. Made by human brains

2. Made of pliable symbols

3. Consumption by one human does not exclude consumption by another

4. Almost costless to reproduce
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Finance Leaders: Generation Z and Education

By John Persico on November 20, 2011

Looking Back 100 years

I recently presented at the Global Creative Innovation Conference. The audience was challenged with identifying three industries that had barely changed systematically over the past 100 years. The final list:

1. Religion

2. Education

3. Professional Services

Understandably, few would argue that churches, temples and synagogues and their followers have embraced change (rightfully or wrongfully) despite the tremendous technological progressions over the past century. Plenty of people appear to be committed to ensuring the next generation have no need to learn in a grid-like classroom from the 1800s - but learn in ways that truly enrich educational learning and critical thinking.
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Online Entrepreneurs – The New Investment Banking?

By John Persico on September 1, 2011

The Dilemma

Last week a talented 22-year old finance/law student I mentor recently faced a dilemma between joining a “bulge-bracket” Investment Bank and following his online dreams. Several of his University colleagues and recruitment specialists I subsequently spoke with confirmed that this daunting career cross-road had quietly become commonplace. Is it possible that the best and brightest finance graduates are viewing an “apprenticeship” within investment banks, management consultancies, private equity and hedge funds as a sub-optimal career path? My mentee shared some insights around the growing number of global finance graduates opting for a new career alternative – the online world – and it seems there is no turning back.
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Financial Modeling Supply Chain: A Case Study Exploration [Part 2]

By John Persico on August 1, 2011

Continuation from Part 1

Future Strategic Considerations

Strategic considerations at the forefront of the financial modeling industry in the next decade include:

1.  Web 2.0

2.  A dedicated marketplace

3.  Better modeling processes

4.  Stop screaming. Start listening

5.  Cognitive surplus – Friend, not foe

6.  People culture

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Financial Modeling Supply Chain: A Case Study Exploration [Part 1]

By John Persico on July 25, 2011

“The whole professional services landscape is changing so fast….[s]oon everything in the natural world will have a digital equivalent.  Everything from social interactions, information systems, transactions and sensory systems will be replicated on the internet” Ross Dawson

Overview - Financial Modeling Supply Chain

The financial modeling industry has long existed as a ‘black art’ or sorts.  There is near universal acceptance that financial models should be built in an easy-to-use, robust, flexible and fit-for-purpose manner.  One of the primary challenges for the industry, and professional services more broadly, is a highly fragmented and difficult-to-define “services” supply chain. Information asymmetries and a healthy scepticism towards collaborative innovation appear to be preventing the flow of knowledge, resources and information to where they are most valued.  This article will begin to explore some opportunities for effective supply chain management within the financial modeling industry.  The article also begins to examine how the internet could be the catalyst driving transparency, openness, collaboration and accessibility of such financial models in the years ahead.

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Green Shoots of Finovation

By John Persico on July 6, 2011

Within the US$1+ trillion global professional services industry, the finance sector has recently looked susceptible to a growing chorus of start-ups looking to strategically rethink finance’s core business models and value propositions.  Internet entrepreneurs over the past few years have embarked on a journey to challenge financial services giants in providing consumers with a greater range of choices in money management.
 
Following in the successful footsteps of the Mint, new emerging leaders – like Wealthfront, LearnVest, Check24 and Wonga (the last three conspicuously backed by Accel Partners) – have helped recalibrate the expectations of “personalised finance” by tailoring their business models, engagement methods and success strategies to specific target socio-demographic, psychographic and cultural niches.
 
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The Case for Quality Assurance Review Panel (QARP)

By John Persico on June 20, 2011

A curious client recently asked – “Couldn’t financial modeling risk be diminished by introducing a Quality Assurance Review Panel (“QARP”)?”  It was a simple, pragmatic question that left me momentarily perplexed. I then enthusiastically responded “I’ll look into it – it could have legs”.
 
And so I researched further. A threshold question is the practicable trade-off between commercial efficiency and fastidious accuracy. Although most financial modelers aspire to believe they can always achieve both – the first spoke more of dollars, the second spoke more of risk management.  I quickly realised that “efficiency” challenges could be largely overcome through further training (most financial modelers are self-taught), collaborative ways to share knowledge and hard-earned experience.  Finding pragmatic ways to mitigate risk appeared to be path less considered – particularly providing a second-set-of-eyes to highly-complex, thought-intensive and “high stakes” financial models used extensively throughout professional services, industry, government and education.
 
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Tic Toc, Financial Model O’Clock

By John Persico on June 13, 2011

Why Web 2.0 will find Financial modeling next

A recent piece in the National Journal by Tankersley and Hirsh, “Neo-Voodoo Economics”, encouraging American’s to think more boldly about new growth and markets, rather than simplistic rethreads, prompted  me to think about a few new opportunities in this space.  A plethora of industries have been radically transformed and reconfigured by the emergence of new business models made possible by web 2.0.  Netizens (a term commonly used to describe people actively involved in online communities) have rocked the foundations, processes and relationships (and wallets) upon which they were built over the past 25 years – learning, working, media and everything in between. Inroads have begun into even the most sacred of sectors – such as religion, politics, property and professional services.
 
However, often these seismic transformations are as subtle, as they are gradual.  A compelling case could be mounted that the financial modeling industry – part of the 700,000 firms in the $1 trillion+ professional services industry – may be next to be transformed by Web 2.0.
 
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