Did you ever notice how some people always know when the light is going to turn green while sitting at a red stoplight? Do you think maybe that they are looking side-to-side for the predictor about when the green light is going to turn red going in a cross direction? The same in business, there are some people who just are more in touch with signals and signs that point to trends and activities that are about to take place.
Driving is a great example of being predictive and looking for signs that indicate trouble or that help to change your strategy. There are clear rules in driving. One should stay a certain distance from another car in driving. However, sometimes cars do not apply their brakes evenly and they will jerk on their brakes a lot like in business sometimes people do not do things in the smartest way. When you are behind that kind of driver, maybe the best strategy is to look at brake lights of a car ahead of him so you can get a sense of when the slowdowns are coming. Business people need to develop signs of their own that are similar to the kinds of signs that drivers work toward or use. Similarly, traffic signals and the way that you can predict when a light is going to turn red based on the yellow or when a light is going to turn green based on the crossing red. What are the signs you are looking for?
When you come to CreditScape, I’ll be talking about some of these predictors in helping you navigate a changing business environment. With more metrics than ever before available, and the adage of “doing more with less in credit” becoming a reality for most businesses, attending an event like CreditScape will help arm you with tools to do your job better. Visit www.CreditScapeConference.com for more information. I hope to meet you there.
Joel Block is a consultant and long-time venture capitalist and hedge fund manager (gobbledygook for “professional investor”) who is based in the San Fernando Valley area of Los Angeles. He will speak on Managing Change in Your Credit Deparment at CMA’s Spring CreditScape Summit on April 4-5, 2018. For more information about the event, visit www.CreditScapeConference.com.