| This is probably such a day as many others. | | | | service, where we know that car-insurance, is |
| Business as usual. Nothing wrong, no alerts, | | | | not really profitable? Especially bankers |
| you loose some, you win some. You go with the | | | | that are carrying a portfolio of possible |
| flow and let your profits grow.... Do not | | | | investments should know that the choice for |
| think that this jargon is for investment | | | | this option excludes some other one. The |
| managers only; business management and | | | | first few banks will envision an opportunity |
| investment management is not that | | | | and respond with greed to new earnings, where |
| different.When you are in the business arena | | | | a few others fear to be left behind and join |
| you know that you have to follow the market. | | | | the team - after all.This is only one |
| You watch the competition, you check the | | | | (recent) example of fear and greed, but there |
| trends and you respond to other incidents | | | | are examples to be found on a daily basis. |
| that you are involved in. Until that special | | | | Besides the example of the old versus new |
| moment.It starts with rumors, than it's the | | | | economy just check in your organization where |
| talk of the town. And then it appears; a new | | | | you hear about the following arguments: |
| trend. Nearly invisible at first, a big | | | | |
| monster a few moments later. Then people will | | | | "If we don't follow we will be left behind |
| ask you; what are we going to do?From the | | | | (you can hear the child say 'me too') or "if |
| investment market we know that the market | | | | we take this step we are the first and the |
| behavior is powered by fear and greed. When | | | | profits will follow forever."If you are aware |
| the oil price is rising, we fear that it will | | | | however of the fact that each person and |
| not lower again, when the US dollar is under | | | | company is unique you can benefit from this |
| pressure it will never go up (a European | | | | by selecting those investments or decisions |
| worry) and if the stock market plunges it | | | | where they fit with your (personal) or |
| will not recover for years. | | | | organizational profile. If you can trust on |
| | | | the success that your company harvested in |
| Closer to the truth is that any movement | | | | the past, you should be confident to continue |
| will have its counterpart. The question is | | | | the same line for the future. |
| timing. When you are familiar with | | | | |
| investments you probably know that you should | | | | If you want to outperform with your team, |
| not try to time the market. Yet does this | | | | you should stay alert for the fear and greed |
| mean that you should always go with the flow? | | | | around you.© 2005 Hans Bool / Astor |
| You cannot (always) stop the flow. But you | | | | WhiteHans Bool (The Netherlands) is the |
| could try to make a few changes especially | | | | founder of Astor White a consulting company |
| when you feel that something is wrong.Take | | | | dedicated to (the human side of) management |
| the following heading of a recent article: | | | | consulting and e-advice. He has many years of |
| "bankers enter car-insurance market in order | | | | experience in (project) management, |
| to provide a global service" (a free | | | | consulting and business architecture. He |
| translation of the Spanish heading in the | | | | studied economics and has recently published |
| business paper 'Expansion'). Why do all of a | | | | the book: "How to manage your organizational |
| sudden a group of bankers enter into this | | | | portfolio - just stick to your rules". |