Hey….Come Down from the Cheap Seats for Better Decisions
Over the summer break from teaching my work in my private practice has seen a few repeated mistakes from clients, which has me commenting about the macro environment conditions.
For example, it is no secret that the Euro-zone is struggling but it is also not to anyone’s surprise either so why then are companies trading at such a discount and near or below book value? Too much emphasis is being spent on what I call the “cheap-seats”. You know the ones…. Way up high in the rafters where you cannot see the specific plays unfold. Apply that scenario to business and you will see we are making decisions from too much macro data – and now we have a problem.
Do this one simple thing: When you are reviewing or creating your strategic plan look at the micro economic information first then complete your situational analysis and better business decisions will result.
