Dealing with 2020 Uncertainty Effectively
Issue #46 December 17, 2019
If 2020 is giving us any clues right now about what to expect, the most certain thing we can expect is uncertainty. As a leader, investor, entrepreneur, you can draw on the reminder list below as a short and simple tool kit for effectively managing and living with uncertainty. Also never forget that uncertainty (like certainty, significance, love, growth, and contribution) is one of the core 6 human needs and it will likely be one you have in abundance this coming New Year so cherish it.
Embrace it-
The best way to overcome the fear of the unknown is to act decisively and boldly. Take the first step and you’ll see that the limits of the unknown become narrower and you will bring new variables and data points into your awareness to help you make the next set of steps. The best way to get ahead of the herd is to start the journey sooner.
Cut your losers -
In times of uncertainty, you must use what you are certain of to preserve capacity and resources for helping your winners and question marks ride out the storms. Stop procrastinating on overdue decisions and resource drains. Cut ‘em and move on. This applies to prior investments, incremental R&D projects, low performing people or toxic relationships, etc.
Get clear on what matters -
Take the time to define what is really important to you and your family and what is optional (must-haves versus nice-to-haves or should-want-to-haves). Clarity provides direction and also allows you to be calm about things you’re not doing and feel certain in your choices because they map to what actually matters to you and not some other peer or societal metric being thrust on you.
Build a roadmap -
When you get lost in town or in a strange place you consult a GPS or a map, don’t you? Well, nothing different applies here or within your portfolio. A personal organization system like GTD offers the same functions as a map is a good hack if you don’t have a tool you already like. A roadmap of where you are ultimately going gives you the ability to create multiple routes that provide optionality when the terrain or original route gets abruptly shifted or taken away. Build a reserve of multiple income streams that are unrelated/uncorrelated as well as one of your top priorities in 2020.
Focus on what you can control -
You are successful because you have no problem taking control of things, but the vulnerability in that is when you obsess over things you can’t influence (election outcomes/geopolitics/financial markets for most people). Focusing on what you can control is key in times of uncertainty. You can’t control what comes at you, but you can control how you respond and what your options are with proper planning. Put your efforts there this year.
Prepare for surprises -
The only thing that is guaranteed in life (other than death and taxes) are surprises. Make sure you are mentally and physically fit and financially fit to whether surprises that may come by investing a little bit in your storage capacity each day. 1% improvement per day in each area gives you a 365% improvement by 2021, and if you don’t use any of that on surprises this year, then you will be compounding forward!
Risks that can’t be eliminated must be avoided -
I fundamentally believe that the real risk is doing nothing, but I am in no way flippant about taking misdirected action for action’s sake. Proper planning. Proper study and emotional intelligence allow you to act with confidence and reduce or eliminate the risks that others will face, but being smart enough to realize which risks are just worth avoiding all together is a key ingredient too. If you see risk in the portfolio that you are not able to eliminate (because it is outside of your control) then make a decision to avoid it and move away from it rapidly and permanently.
Be curious -
Your intellect and awareness are your greatest gifts and what separates you from the rest of the animals roaming this rock. Don’t squander them. Be like a child with curiosity. Cultivate it daily. Play with new ideas and foreign concepts. Challenge your paradigms and what you know to be true. Stay sharp and be grateful that you have a mind and be willing to exercise it voraciously.
Be fearless -
The only two innate fears human beings are born with are the fear of loud noises, and fear of falling. Every other fear is manmade and a signal that you are pressing up against old conditioning and ready for a breakthrough to higher levels of awareness and operation or a retreat to old habits. Learn to work around your fears.
Cultivate resilience -
The famous quote by Rocky Balboa in the 6th installment of that movie franchise goes something like “It ain’t how hard you get hit, but how hard you can get hit, and keep moving forward” Resilience comes from the building blocks above. It comes from pattern recognition, history, and a willingness to be accountable, forgive, and focus on making the next best decision you can. It is human to make mistakes. Champions just keep getting back up.
~Chris