Position Assessment
Position Assessment and Career Assessment.
This is not a post on investment analysis. But the tenets of objective and rational reasoning stands.
When you enter the interview phase of a fresh job position, one will generally be positive about the future outlook of the industry and the organization as a whole. Due to the nature of Singapore politics and lack of union power, a job interview is generally a market maker's game. The negotiating power is much higher at the market maker (Company) rather than the market taker's (employee end). Most employees will employ a certain amount of qualitative scuttlebutt analysis to learn everything about the industry, company as well as quantitative metrics such as leave, medical benefits, dental, bonuses etc before negotiating and securing a position in that company.
The grass always appears greener on the other side. There will always be a certain amount of expectations mismatch from an outsider compared to an insider. Every employee is employed to solve problems for the company, and some are more tedious and complex than others. Certain motivated individuals will be more driven to contribute more by simplifying and improve processes, create a better environment for the client, as well as introducing automation and outsourcing in order to improve cost structure and input / output ratio.
Charlie Munger often espouses on the importance of designing appropriate incentives, which is often parroted by people trying to manage the impression of others. In the realities of a corporate environment, the struggle for power is real and the inertia to change as well as the institutional imperative holds strong. Resources are often not distributed appropriately in this zero sum environment. Impression managers may easily pass on vicissitudes and risks of corporate performance to the employees, whereby it is my way or the highway. The rise of contractors in the corporate landscape is a modern reality, whereby the risks of headcount capacity mismatch can be hedged by employing people on an ad hoc or contractor basis.
When your position in the company is rapidly deteriorating due to top line under-performance as well as market conditions, restructuring and cost cutting sets in. The tenacity of the institutional imperative sets in and managers use their schmoozing and relationships to create a wide and secure moat to prevent the onslaught of capitalism and restructuring meetings. When the rot is seeped into the organization for decades and the incompetent rise up the ranks despite obsolete skills and knowledge in a fast changing environment, the insecure will simply deteriorate into bean counters, cost cutters and impression managers.
Headcounts to be managed becomes costs to be managed.
People that are groomed to be assets for the company present a threat to your career.
Bottom line staff acts as an hedge to outsource the risks and problems of your operational processes.
When the fundamentals are rapidly deteriorating on a daily basis, the illiquidity of the job market presents a problem. Your long term Buy and hold position becomes a short position with limited upside and unlimited liability. Getting out of a position without downside coverage, and reinvesting your time into a higher paid position post disruption to your financial freedom plans. It was a long tedious process, but I managed to execute a turnaround trade. Getting rid of my deteriorating position in the morning, and rushing off to settle the new position at the later part of the day.
The onward journey will be equally tough.
The cycle may continue, but I am prepared.
The ship in the harbor may be safe, but it is not what it is built for.
You are what you settle for.
This is not a post on investment analysis. But the tenets of objective and rational reasoning stands.
When you enter the interview phase of a fresh job position, one will generally be positive about the future outlook of the industry and the organization as a whole. Due to the nature of Singapore politics and lack of union power, a job interview is generally a market maker's game. The negotiating power is much higher at the market maker (Company) rather than the market taker's (employee end). Most employees will employ a certain amount of qualitative scuttlebutt analysis to learn everything about the industry, company as well as quantitative metrics such as leave, medical benefits, dental, bonuses etc before negotiating and securing a position in that company.
The grass always appears greener on the other side. There will always be a certain amount of expectations mismatch from an outsider compared to an insider. Every employee is employed to solve problems for the company, and some are more tedious and complex than others. Certain motivated individuals will be more driven to contribute more by simplifying and improve processes, create a better environment for the client, as well as introducing automation and outsourcing in order to improve cost structure and input / output ratio.
Charlie Munger often espouses on the importance of designing appropriate incentives, which is often parroted by people trying to manage the impression of others. In the realities of a corporate environment, the struggle for power is real and the inertia to change as well as the institutional imperative holds strong. Resources are often not distributed appropriately in this zero sum environment. Impression managers may easily pass on vicissitudes and risks of corporate performance to the employees, whereby it is my way or the highway. The rise of contractors in the corporate landscape is a modern reality, whereby the risks of headcount capacity mismatch can be hedged by employing people on an ad hoc or contractor basis.
When your position in the company is rapidly deteriorating due to top line under-performance as well as market conditions, restructuring and cost cutting sets in. The tenacity of the institutional imperative sets in and managers use their schmoozing and relationships to create a wide and secure moat to prevent the onslaught of capitalism and restructuring meetings. When the rot is seeped into the organization for decades and the incompetent rise up the ranks despite obsolete skills and knowledge in a fast changing environment, the insecure will simply deteriorate into bean counters, cost cutters and impression managers.
Headcounts to be managed becomes costs to be managed.
People that are groomed to be assets for the company present a threat to your career.
Bottom line staff acts as an hedge to outsource the risks and problems of your operational processes.
When the fundamentals are rapidly deteriorating on a daily basis, the illiquidity of the job market presents a problem. Your long term Buy and hold position becomes a short position with limited upside and unlimited liability. Getting out of a position without downside coverage, and reinvesting your time into a higher paid position post disruption to your financial freedom plans. It was a long tedious process, but I managed to execute a turnaround trade. Getting rid of my deteriorating position in the morning, and rushing off to settle the new position at the later part of the day.
The onward journey will be equally tough.
The cycle may continue, but I am prepared.
The ship in the harbor may be safe, but it is not what it is built for.
You are what you settle for.
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