What happens when you open yourself up to future possibilities? This is what the concept of future orientation decision making is all about. Here we explore the ability to recognize—even welcome—the potential, the unexpected, the new. Whether an organization is closed or open to new information is determined by whether it has a past or future orientation.With a past orientation, we communicate and make decisions on the basis of past information and reject or ignore new information. Traits of a past orientation include: Reliance on past history for decision making, Language focused on past events or behavior, Independent relationships, Strong need for control, Need to maintain the status quo, Low trust, Win-lose conflict resolution style.
Those with a past orientation operate in a closed paradigm—they view the world the way they want it to be. They’re unwilling to challenge their own assumptions and change their beliefs. They make decisions based on outdated mental maps. They are speaking and living in the past with old information.
Cash CDOs are collateralized by a portfolio of cash assets and the entire liability structure is used to fund the purchase of collateral. Synthetic CDOs transfer credit risk from the CDO issuer to CDO note holders through CDS. The synthetic CDO normally funds only a small portion of the notional value of the credit exposure. Therefore the weighted average cost of liabilities are much smaller for a synthetic CDO because of the unfunded super senior tranche (around 85–90 percent of the capital structure) which leads to a higher return on the equity tranche.