Saturday, April 25, 2009

Spring and Green Shoots

While focusing on the 2 pillars of our business, we also took step to review our third pillar i.e. review the state of the market. ...We have decided to leverage on our domain know-how, technology and fuse with these with the third element, networking.

After pouring through the literature regarding the market, we came to the conclusion that:
a) deflation is certainly bad for investment and consumption,
b) stabilizing the financial sector is key to unfreezing the credit market,
c) regulators will be required to take bold, extreme measures in the form of quantitative easing ( QE ), to reflate the economies worldwide commencing with the US,
d) All the stimuli will only work if the interests of all stakeholders are aligned, and will come at a cost - inflation.

Taking cue from the above, we took the view that the financialswill lead in the recovery, and with the recovery, US dollars will come under pressure as investors will switch to emerging markets with higher betas and commodities as hedge against inflation / declining dollars.

The goal amongst the collaborators is to rebuild a portfolio of asset classes to take advantage of the next stage of the business cycle.

The collaborative effort has worked very well and we will like to pause to understand the drivers for the successful outcome. We can certainly attribute the positive outcome to the following drivers:
a) leadership,
b) first who then what,
c) confronting the brutal facts but remaining stoic,
d) stay focus and keep the strategy simple to understand and execute.

The above is only possible when we have shared values ( core ) i.e. trustworthy ( honesty and competency ), transparent and accountable, quality-minded and passion, as well as respect for others.

All in all, we would like to transplant these positive takeaways to other cases that we are emabarking on.


Keywords: quality, value systems, trust, domain knowledge, technology, networking, maven traps, speed of trust, lifestyle



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