Zooming in and out on your business

Bad news happens fast, good news happens slow

Morgan Housel on an interview with Diary of a CEO

Morgan Housel, the author of a.o. the Psychology of Money, makes this quote in the context of how compounding on the long term is a key differentiator for the success of investments. The thing about compounding, whether is a 2% interest on your savings or the famous 1% better everyday, is that the effect is most massive after the passing of time.

Photo by Jon Tyson on Unsplash

In the ever-evolving landscape of the business world, the idea “fast news comes fast, good news comes slow” couldn’t be more relevant. This principle, often applied to the realm of information, holds a profound connection when transposed to the realm of business strategy and management. In the quest for sustainable success, businesses often find themselves oscillating between the rapid scrutiny of daily operations and the patient observation of broader trends over months or even years.

Embracing the principles of Daily Management from the Lean business philosophy offers a compelling framework for understanding and navigating this duality. In the fast-paced world of business, a daily check on operations becomes imperative, akin to catching breaking news as it happens. This approach aligns with the Lean philosophy’s emphasis on real-time monitoring and quick response to deviations from the norm. Just as breaking news captures our attention, daily management allows businesses to swiftly address issues and mitigate risks, ensuring the ship stays on course amid the storms of the daily grind.

However, the true essence of sustainable success lies also in the ability to step back and take a panoramic view of the business landscape. Monthly and annual assessments provide the necessary perspective to identify the slow, yet powerful currents of positive trends. This parallels the notion that good news, much like the fruits of strategic decisions and long-term investments, takes time to manifest. In Lean philosophy, this aligns with the concept of Kaizen, continuous improvement over time, which emphasizes the incremental positive changes that compound into substantial, positive shifts in the long run.

Daily Management in the Lean framework not only acts as a vigilant guard against short-term challenges but also contributes to the broader, strategic vision. The meticulous tracking of daily metrics feeds into the creation of a comprehensive dataset that, over time, unveils patterns and trends. This, in turn, informs the strategic decisions made during the monthly and annual reflections. The daily becomes the building block for the monthly, and the monthly sets the stage for the annual, creating a seamless continuum of improvement.

In conclusion, the idea of “fast news comes fast, good news comes slow” serves as a valuable guide for businesses navigating the intricacies of the modern market. By integrating Daily Management practices from Lean, businesses can strike a harmonious balance between the need for immediate responsiveness and the foresight required for sustained growth. In the fast-paced world of business, adopting this dual perspective ensures that not only are the fires extinguished as they spark, but the path to long-term success is illuminated by the steady glow of positive trends.

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