What Now?
Are you an investment manager, asset manager, or other professional looking for true north in responding to today’s headlines with leadership?
In every disaster, people come first. Corporate America has been surprisingly vigilant sending out communication regarding health and safety. Do your part.
With that said, when it comes to assets:
Start with facts.
We don’t know what will happen. When it is necessary to predict ranges of outcomes, do so sparingly.
Existing assets and operations.
Managing assets in uncertainty means driving strength and security where possible. Trade for strength. If you are managing existing assets, you are going to be presented with frequent alternatives and decision points. Trade for strength. Do not “assume the worst” or focus on “worst case scenarios.” Drive toward a position of strength wherever possible and outcomes will take care of themselves. This includes decisions with only bad alternatives. Bias toward strength because your focus is on continuity.
New opportunities.
As tempting as it is to venture out, stay within your competencies. If nothing is appealing within your competencies, A) look harder, B) continue raising cash, or C) bet on jockeys using extreme caution. If you will be able to deploy into new assets, there will be opportunities and there is no rush. Plan to deploy in the aftermath, not before.
Maintain health.
Exhaustion causes weak decision making. Particularly in light of an elongated process, be prepared for new stressors to come along. Do not “run redline” for extended periods.
Use resources that are available.
Wherever you are within your organization, you have a role within a larger ecosystem. Seek to draw on resources. Additional resources that are available in or outside your organization can and should be deployed to buttress your team if available.
Communicate intentionally.
Overcome panic and make responses to those looking for definitive answers by narrowing messaging, direction and decisions. Attempt to stay within your competency and with discretion. Leave prognostication to others. Limit comforting messaging to a professional minimum.
Posted: March 16, 2020