Wednesday, April 30, 2008

Sometimes the Big Picture Doesn't Matter

I'm generally a "big picture" kind of guy. Specific tactics and details can always be adjusted and tweaked, after all, while the overall direction and impression should be consistent, complementary, and cumulative.

Usually:

strategy = big picture.

But sometimes that big picture is just plain misleading or unnecessary.

Take real estate. I've read a few articles lately about how the Canadian real estate market is starting to slow down. Maybe it's not a good time to buy a home or to be in an associated industry. Prices are stalling and might actually drop a bit. The number of listings and sales is decreasing in most markets. And so on and so on.

But...

This doesn't apply everywhere and especially not to every property. Even looking at a specific region the trend doesn't necessarily matter. In fact, it might actually mean the opposite of the obvious conclusions.
If people no longer want to spend a million bucks on a downtown one-bedroom condo, maybe they want to spend that same amount on a five-bedroom house in the suburbs (which is currently priced well below that level).
If a new transportation link, shopping centre, or other amenities are being added to a formerly distant and desolate area, why would demand there decrease?

So, I'm starting to think that a more accurate understanding of "strategy" is actually:

strategy = big picture + the exceptions

By simultaneously looking at the macro and the micro, you can direct your efforts towards the end result that you want but still avoid doing virtually the same thing as everybody else.

Figuring out "the exceptions" is way harder than coming up with a big picture.

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