Decision-Making and Managed Risk-Taking

If you read me, you know that I'm a serious fan of Josh Brown's blog, "The Reformed Broker." He may be talking about finance and the financial services industry, but if you read closely, you'll see that the foundation of what he's talking about is always decision-making and managing risk.

Yesterday he had a perfect example.  After the US Federal Reserve announced its forthcoming policy and decision he wrote (emphasis mine):
"Now everything is different. At first blush QE3 does indeed look like a game changer. 
This business is not about making calls and and sticking with them for the sake of being able to say you were right all along, it is about processing new information that will make a difference and dropping the opinions that have been invalidated. I come to work every day hoping I'll be able to do that. It's easier to write about than to actually do. Is your decision making process flexible? Are you hung up on what "should happen" rather than what is likely to happen?"
With that in mind, take a look at your decision-making process.
  • Are you flexible? 
  • Open to new information?
  • Using it to fuel your and your team's new thinking?
  • Do you drop old opinions and decisions as the new information gives a different direction or guidance for you to follow?
The answer to all those questions should be 'yes.' If it's not, start tracking how you make your decisions - as well as how others in your organization make them - and determine how to balance managing risk with courageous steps forward.

Game changers - big and small - are happening all the time. Use them correctly and you'll exceed your vision...not just achieve it.
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