8+
[Ed. note: I’m often asked what authors have influenced me, or who they can read
The Alchemy of Narrative
The Latest From Epsilon Theory
DISCLOSURES
This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.
Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Not as public and impactful but I’ve worked in corporate positions for more than a decade and I have seen the same process occur with respect to strategy and performance; changing of metrics to look at; seeing subtle “winds” changing in executive meetings because of what one senior person said or didn’t approve. Even the attendance of a higher executive at a run-of-the-mill operational meeting. I’ve also worked with a smaller brand within a larger context that didn’t manage the narrative about them at all, it had no missionary for a while and very weak and useless one for a while and it was such a super sad situation — as if in the negative feedback loop that Soros discusses; in “reality” this smaller division is insignificant, poor-performing, has no leadership, is a “dud”; it always struck me from the beginning why no one just picked up and changed the narrative, no one changed the metric from revenue to “new customers” or “brand awareness” or “product views” I mean hell pick anything!– it seems easy with a small brand, just manage the higher ups and your teams to look at something else besides the bad sales figures but true you need a Missionary!
So true. It’s a fractal! This is (unsurprisingly) remarkably similar to what goes on in Investment Committee meetings. The decision making process has relatively little to do with the data and EVERYTHING to do with the personalities around the table and the politics of those relationships. Only a Missionary can effectively sponsor an idea. Incidentally, I think it’s kind of silly to put non-Missionaries on these types of committees in the first place. In practical terms their presence is meaningless. You can just wheel them in to run through slide decks as needed. It is interesting to consider, however, that the illusion of control/influence (a kind of theatre) might be essential to keep an organization functioning…
Never believe a rumor until it has been officially denied.