A Wrap of Assumptions, Strategy, Business, and Stock Investing

The last several posts have dwelt on next steps after goals have been set in response to an Environment Scan. Our concern has been to craft strategy with equal relevance to business management and to stock investing activities.

We have encountered major road blocks in enumerating assumptions. We have listed 10 of them, and discovered that they may force us to revisit strategy more often than once a year. Classically, strategy is supposed to be relatively unchanged, for otherwise it will merge in to operational tactics.

How can we distinguish between the two? Frequent changes in strategy can sap organizational vitality. It may also confuse a stock investor. here are some ideas:

1. Make management a duopoly: form a team, whether you run a business, or manage a stock portfolio. Divide execution from review. Encourage one person to drive while you keep a look-out. Reverse roles from time to time. Put heads together to decide whether to stick with strategy, or to change course.

2. Benchmark with airline pilots: regular rehearsals with realistic simulators keep this fraternity ready to deal with emergencies at any time. Business modeling and wide exposure to management cases can keep you on your toes. It is a great way to hone execution skills as well. Online trading allows us to play with theoretical portfolios and to see improbable implications of stock investment options.

3. Optimize rather than maximise: this is related to the previous point. A strategy that promises reasonable results over a large number of scenarios is better than one which links super rewards with high risks. A corollary to this approach is to bank on internal appraisal systems, because people who are not privy to the strategy crafting process will not see optimal results in true light.

We are now ready to craft strategy, and will start the journey tomorrow.