blindfold

Don’t Follow Rules Based Decision Making Blindly!

A rules based, structured decision making approach works for many occasions, especially when choices and outcomes are relatively well documented and repetitive. But an exclusive focus on following pre-determined business rules (even when business conditions change) is a recipe for financial disaster. Author Michael Lewis of Moneyball and The Big Short fame, has long critiqued decisions made by government…

iceland_1970

Pithy Lessons Learned From Iceland

Pithy lessons learned from 2008 financial crash in Iceland – lessons I summarized from a Vanity Fair article by author Michael Lewis. Focus on your core competency – (hint: it usually isn’t investment banking) Leverage kills. Again, and again and again. Don’t we EVER learn? Speculation: if you play, you better know when to leave…

Puzzle piece

Forget Derivatives – Hedge Risks with Innovation and Integrated Data

To protect against wild currency swings or volatile commodity costs, one surefire strategy employed by senior managers is hedging risk with derivative contracts. However, some companies are discovering alternative methods to guard against uncertainty via two strategies—product innovation and integrated data. In a recent Fortune article, author Becky Quick cites methods for dealing with tumultuous…