Core Beliefs

The Free-Energy Governance approach is based on three core beliefs:

  • increasingly distributed and discontinuous market environments impose continuous strategic renewal;

  • cognitive capabilities gain in relative importance to domain expertise and operational capabilities; and

  • the board assumes a critical role in balancing the firm’s strategic (in-house innovation) and financial control (M&A/alliancing-driven growth/innovaiton).

The ability to embrace continuous renewal as a basic value is the firm’s foundation for long-term performance and survival.

Target Profile

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KCRI is dedicated to innovation, continuous strategic renewal, and growth. We invest and partner with companies operating in the information economy (technology, media, financial services) and sports that are non-capital intensive, people-oriented, and pursue continuous strategic renewal as a basic value. Our orientation is global with a strong anchor in Europe and the US.

 

Free-Energy Governance

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Digitization is challenging traditional modes of organizing to uniquely redefine the circular top-down/bottom-up interplay between owners, non-executive board, executive leadership, and field operations. The KCRI approach - Free-Energy Governance - is centered around:

  • Structure (top-down/bottom-up prediction-error and surprise minimization);

  • Cognition (environmental enactment); and

  • Capabilities (dynamic board capability: duality management).