I’m getting on a little. After 25 years of work I want to make sure that I don’t have to do another 25.
Tragically, I am starting to worry about my pension.
I want to spend my golden years watching the sun set over the ocean, not sitting in an office.
So I have talked to a financial advisor
He has been busy developing a savings portfolio for me (and taking his cut of my hard-earned retirement fund, not that I am remotely bitter).
My advisor has pointed out the blindingly obvious. I need to balance the risk of my investments:
- I need to put some money into safe stuff (gold)
- I need to put some money into mid range stuff (the stock exchange)
- I need to put some money into that can’t fail investment in Ulaanbaatar that will make me millions
My advisor tells me that if I have a portfolio I can change the risk to reward balance of my investments by changing my portfolio mix.
So a portfolio approach is best, it helps me manage the risk.
What has this got to do with business improvement?
All improvement projects carry risk. Non of them are guaranteed to work.
But rather than managing all projects to the same risk appetite what we should do is…
Take a portfolio approach
And manage our projects as a group
- A bucket full of small improvements
- Some business process redesign
- A few sizeable innovations
- And a lunatic genius in a garage trying to reinvent the market and put us all out of business (better he is on our payroll than somebody else’s).
Once we have a portfolio of different projects, then we can get cute about balancing the risk. But only if we have a portfolio.
I no longer have all my pension invested with a lunatic genius in Ulaanbaatar. Mrs Lawther thought it unwise.
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Image by Turning Tide Photography