We recently came across an old article from the Financial Analysts Journal entitled “Organizing for Creativity“. The article can be downloaded off JSTOR with a free account.
The premise of article is that successful investment management requires four elements:
- A structured decision-making process that can be easily defined.
- A stated investment philosophy than can be applied consistently
- A clearly stated and applied sell discipline.
- Key creative personnel.
Creative people are: intellectually curious, flexible, able to recognize problems and define them clearly, able to assemble information in different ways, anti-authoritarian and unorthodox, mentally restless, intense, highly motivated, highly intelligent, and goal oriented.
We always want to create an environment that encourages these qualities. It always helps to start with people that exhibit strong character traits in these areas, but it helps to create an environment where people can ask questions and work in teams. Team members should be willing to help others learn and those that are learning willing to contribute to some of the route work. The environment should encourage intelligent risk taking and experimenting. Decision making and evaluation should be short and effective. Not every decision has to be good, but they should be made in a framework that on average is good.
We hope you enjoy the article!