| Investment is about allocating different | | | | compared with the investment profile. |
| investment instruments into a portfolio in | | | | Although not exactly the same, the business |
| such a way that this portfolio is aligned | | | | profile is also about risk-and-return |
| with your personal profile. | | | | characteristics. One company is different |
| | | | than the other. Risk-and-return is part of |
| Banks and financial advisors could help you | | | | this; imagine that a cyclical (trading) |
| achieving this alignment by offering a | | | | company is much more prone to (business) risk |
| certain modelportfolio. This is a sort of | | | | than a 'normal' producer.Companies need a |
| benchmark that corresponds to a certain | | | | strategy in order to achieve future growth. |
| (risk-return) profile. By a series of | | | | This strategy could be the same as the |
| questions, you can find out about your | | | | current business profile, but normally it is |
| investment profile and having done that you | | | | not; not seldom, strategy implies new |
| can select the appropriate model | | | | business development and growth but not |
| portfolio.Another question the financial | | | | necessarily in the same direction that is |
| advisor will ask you is the purpose (or long | | | | indicated by the current profile.Performance |
| term goal) of your investments. Your goal and | | | | management is a next step. Performance |
| your investment profile together serve as a | | | | management is about measuring where you stand |
| personal investment strategy. The | | | | in the process of achieving the strategy. Or |
| model(portfolio) serves as a benchmark; if | | | | put differently using the investment jargon; |
| your portfolio grows, the distributions of | | | | how does your strategic profile match with |
| the different assets will change. You are | | | | the profile of your current organization? |
| then to take (operational) actions in order | | | | Aligning these is you objective in achieving |
| to re-establish the alignment of the | | | | the business strategy.© 2006 Hans BoolHans |
| portfolio with you profile.If you translate | | | | Bool is the founder of Astor White a |
| this to business management, you will end up | | | | traditional management consulting company |
| with a performance management approach.First | | | | that offers online management advice. Astor |
| you need to find out your business goal, | | | | Online solves issues in hours what normally |
| which we could say is growth (growth of the | | | | would take days. |
| business portfolio). This can also be a | | | | |
| departmental figure. Than you need of profile | | | | You can apply for a free demo account. |
| of your business. This profile could be | | | | |