Tuesday, January 22, 2013

Making group decisions

"My idea of a group decision is to look in the mirror"
Warren Buffet
Nothing like a little bit of confidence; nothing like long term success to bolster confidence!

And, by the way who is the investor in your project? Every project has one because every project is a bet on success, with risk of failure... thus the mix of investment, reward, and risk are all there.

Typically, the business is the investor: the project begins life as a liability on the balance sheet. What you want -- and your investors -- is for that liability to be transformed by project activity into some form of an asset, thus actually building the balance sheet, even as resources (assets) are consumed.

The idea of asset transformation is probably one of the most fundamental about projects as a business tool. Value is added to the asset in the transformation, and the business is all the more valuable thereby.