New Managers
August 2017
MARKETING CHALLENGE: Diane Harrison: Situation awarenessSituation awareness: investment perspective intensified Situational awareness means honing your ability to analyze the surrounding environment as an automatic practice while carrying on regular activities. The U.S. Coast Guard defines situational awarenessas the ability to identify, process, and comprehend the critical elements of information about what is happening with regards to a mission. As their training manual states simply, it'sknowing what is going on around you. From an investment perspective,sharpening one's overall desired investment goals and how best to achieve them is an ongoing and dynamic exercise in diligence and critical thinking. Mckinsey& Company's website published a book excerpt in 2015, Perspectives on the Long Term (Dominic Barton and Mark Wiseman), in which they referenced Nicholas G. Carr, author of The Glass Cage: Automation and Us, warning us not to secede from the power of active thinking: "...what decades of human-factors research tell us are that when computers and other machines take challenging tasks away from us, we turn into observers rather than actors. Distanced from our work, we lose our focus and become even more susceptible to distraction. And that ends up dulling our existing skills and hampering our ability to learn new ones. If you've ever gotten lost while following the step-by-step directions of a GPS device, you've had a small lesson in the way that computer automation erodes awareness of our surroundings and dulls our perceptions and talents." It it can save lives, it can probably assist investment portfolios Why is situational awareness important? The Coast Guard manual states that the consequence of not paying attention to it means that when we lose the bubble (i.e., Situational Awareness) weincrease the potential for human error mishaps. Perhaps a more relevant question to ask in one's investment planning is: "What might...................... To view our full article please login
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