The Circle within a Square Pattern (CSP) is a kind of hidden order beneath the surface presentation of the company. Having this knowledge gives the consultant a kind of X-ray vision with which they can go right to the root causes of the various problems that present on the surface. Therefore it can be applied to every aspect of the corporation. Presented below is a listing of some of the potential areas to which this know-how can be applied.

Due Diligence

The CSP diagnostic can provide an excellent complement to existing due diligence procedures employed by financial consulting firms. In and of itself it is an excellent indicator of malfeasance, inflexibility of supply chain, poor responsiveness to changes in market conditions, and the unsuitability of the workforce to effectively handle the challenges presented by the economic environment.

The CSP diagnostic also enhances the effectiveness of other due diligence procedures. Being unconventional, it circumvents any attempts by management to distort their company’s financial picture. Also, the information can be cross referenced to existing measures, highlighted areas requiring further investigation.

M&A

The contra selection created by the CSP through which people of inferior talent and character are promoted, and those who are talented and have integrity are crowded out from the positions of influence, has two important implications:

1. With the removal of a few key individuals the hidden game and its associated hold over the company can be broken.

2. Much of the key talent needed to steer the company forward into the future already exists within the company.

By removing those in the inner circle, and replacing them with a combination of the best and brightest within the company and a team of experienced experts, the company can be turned around rapidly and relatively painlessly, while actually improving morale at all levels within the firm.

Change Management

The CSP acts as the glue which holds outdated rigid management structures together; undermining any and all attempts to create meaningful and lasting change within the organization. In larger organizations, with more tiers on the organizational chart, the likelihood of there being pervasive collusion is greater.

During the course of the consulting engagement those within the inner circle will make every effort to convey the impression that they support the initiative. Lip service will be paid to the new nomenclature (in a similar manner to the way it was paid to the existing one) the way business is done remains the same.

The CSP diagnostic provides a template that can assist in mapping out the hidden agendas that lie beneath the surface within the organization. This can assist agents of change in specifically pinpointing from where resistance to change is likely to come, allowing them to take the appropriate steps to counter them.

Strategic Management

The prevalence of collusion in social environments discussed earlier immediately implies that on an industry level it is likely part of the equation. Therefore any long-term strategy that does not provide for its existence would be incomplete. By recognizing the CSP as it relates to the external business environment, firms can better understand the dynamics which drive the business environment they are in, and chart their long-term course accordingly.

Understanding about the CSP changes the playing rules when engaging with competitors, suppliers, strategic partners or competitors that are Game driven. This knowledge would also help firms to anticipate the likely movement of their competitors in the future.

Negotiation Strategies

The same principles that apply on the strategic level do so tactically as well. Most traditional approaches to negotiation are premised on two key assumptions. Firstly, that the person negotiating on behalf of the firm has the firm’s best interest at heart. Secondly, that both parties are acting in good faith and seeking a solution that accommodates both. In an environment dominated by the CSP, neither of these assumptions is likely to hold true.

Between Players the surface agenda is just form, subterfuge. For them there is always a hidden agenda that serves their own narrow set of interests, as opposed to those of the company they represent. This is an invaluable piece of intelligence for determining their true underlying motivation as well as their likely direction of movement in the future. With this information we can develop a very effective counter strategy perfectly tailored to each situation.

Public Service

The mandate of public organizations is to make the most effective use of the funds placed at their disposal. The Hidden Game phenomenon will undermine this agenda by impeding the flow of information between those using the service and those responsible for planning and organizing its delivery. Also, there will be a tendency to overstress accountability, impeding the smooth flow of services to the end user. The diagnostic quickly pinpoints where this phenomenon exists, allowing senior management to take immediate steps to ameliorate the situation.

• Risk management

• Corporate governance