Popularize Requisite Organization By Making Money With It

Forrest Christianrequisite organization 1 Comment

“MAKE MONEY FAST!!!!!”

Look, if it works for spammers, maybe Requisite Organization supporters should give it a try. Making money with something is the best way to prove that it works.

What requisite organization gives us is not a replacement for management or business skills, but a way to classify that mysterious “leadership” that seems to change the entire equation. “Good leaders” are people who are skilled bussiness people who also work at the right strata for them. “Great leaders” are leaders who grow to be bigger than the roles’ strata.

I propose that we open a test fund that uses Requisite Organization, on top of other normal market management tools and information, to make long-term investments in corporations. Specifically, I propose using publically available interviews — or ones that I can weasel out of reporters — to judge the Capacity of Information Processing (CIP) of CEOs. I will then copy an existing portfolio, but remove every company whose CEO is not at the right strata. We can then look at fund performance over time.

I should be at a greater disadvantage than the actual fund. And since I’ll simply be keeping my “shares” and not trading, nor affecting the outcome by attending shareholder meetings or those “Ask the CEO” teleconferences for quarterly results, I should be at an even greater disadvantage. (We’ll ignore the finding that leaving your investments mostly alone pays higher dividends over the long term.)

I can even do this without investing money, purely as experiment like the Today Show’s throwing darts at a stock sheet to pick winners. (They out performed the market over several years, if I remember correctly.) We can even run it so that the data is just historical: we can pick a fund, see what they invested in five years ago, take the same investments and kick out wrong-strata CEO-led companies.

If we really believe that this will make a difference, we would take energy stocks and look at them from one year before to two years after the collapse. That should help demonstrate Requisite Organization’s prediction in light of outside effects. Unless it turns out that Enron was run by lower-stratum management, in which case we won’t take a massive bath right away.

I’m game. I’d put money into it put I’ve got to pay the house not this month. Darn that unemployment! So I’ll be doing this with just figures. Now I have to find a friend who understands this to help me out. Maybe one of the traders from church will lend a hand…

Image Credit: George Stack. © 2007 BKMD at en.wikipedia (Bill Koslosky, MD) (CC BY 2.5). Via Wikimedia Commons.

Comments 1

  1. There is a group in Sweden that is doing something similar to this.

    They are finding a relationship between stock value (down, up, stable) and CEO CIP (under, over and matched to the role).

    I can’t speak to their work very well. Glenn knows more I believe. Glenn?

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