Archive for the 'My Profile' Category

Jun 03 2008

Let Go Something Very Dear

Published by Ricky under My Profile

There are many things we consider valuable in each of our life, different from one person to another.  It could be our family, business, job, parents, children, relationship, position, community work, hobby, habit or even an addiction.

I’ve been holding certain things very dearly too.  But when I look into these things, I could find that they may not be as valuable as I’ve been thinking them to be.  Are they really that important?

Sometimes these things can even keep me from focusing my time and resources on the most important life goals.  They may be good things, but may not necessarily the best ones in life.   The enemy of “best” may be called “good”.

Perhaps sometimes we need to learn how to let go certain things, so that we can no longer be bondaged by them any further.  Surely there will be pain forgoing something which have been very dear to us so far in life.

In the four actions framework (Eliminate, Reduce, Raise, Create) according to the Blue Ocean Strategy, a business may need to examine what it offers and find out what is not really important and necessary, and learn to eliminate them (but raising and creating other values).  I heard that if there is no pain and resistance to do so, then there is not really eliminating anything.

Similarly there will be pain and resistance to let go something which have been valuable in our life.  But if we don’t learn to stop going after these things, we can be like chasing after the winds, achieving nothing much at the end.  Let’s say NO to these things so that we can say YES to more important things!


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May 12 2008

Blue Ocean Strategy For Personal Finance

Published by Ricky under My Profile, Strategy

The blue ocean strategy is more than just a fad. It’s influencing how businesses made their strategic planning for years to come. Its various strategic tools and models, such as the four actions framework, are extremely useful to create blue ocean strategy business.

The blue ocean strategy is not only applicable to businesses, but in other contexts as well, though we can’t apply everything directly in those settings. In particular, the four actions framework is useful in planning our own personal life.

Whether we like it or not, everyone of us is a Me Inc., and we are the CEO of our own life. We do have a mission to complete on this earth in this life. And to achieve this, we have been bestowed with resources such as time and money.

The four actions framework can be used to differentiate ourselves (or our business) from others yet at a lower cost. It asks four main questions - what to Eliminate, what to Reduce, what to Raise and what to Create (ERRC)? Let’s take an example how I might want to plan my expenses:

Eliminate - In recent years, I have developed a habit of eating out in expensive restaurants with others, that now I patronize these places even when eating alone! I don’t have to spend so much when eating by myself. I need to cut this expense completely!

Reduce - I need to reduce buying seemingly useful but actually unnecessary items such as books and magazines. I don’t have so much time to read all of them!

Raise - I should spend more on high-leverage expenses which give good returns in long term. For example, taking classes to educate myself in business, finance and technology can go a long way toward success in life.

Create - I may want to consider some investment instruments such as shares, which as a risk-averse person I never tried. Of course, getting educated first in these is essential to avoid losses.

I find it helpful to that many things in business and life can be applied through this ERRC model. Is there anything you want to get ERRC’d too? :-)


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