Each trader sooner or later comes to a single ideal of trading, which suits him more than anyone else. There are completely different and opposite trading styles and strategies that are completely opposite to each other. Each of them has its pros and cons, as well as different knowledge and requirements of the trader himself. If you are interested in the question of what trading strategies are, then this information is for you. Before you decide who you will be on foreign exchange market, be sure to study each style of trading and determine the most attractive for you.
Scalping (pipsing) is a speculative strategy that is carried out within the trading day. Its essence is to a large number short trades with little profit. Scalpers spend at least several hours a day in front of the computer in constant search for profitable trades. A successful scalper is characterized by a quick reaction, concentration and perseverance, as well as nerves of steel and a lot of free time.
Scalping features:
We will tell you more about scalping in this material.
Intraday trading (day trading) - the essence of this type of trading is not to leave open transactions for the next day, that is, not to leave them overnight. This is due to the fact that “gaps” are possible at night, which carry a great danger. Compared to scalping, intraday trading has much fewer trades with a longer duration.
Features of intraday trading:
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Swing trading is characterized by a small number of transactions that last several days. In this case, the trader should be as patient as possible, because not everyone can wait for the closing of the transaction for several days. Also, there are often situations when you have to sit out losses in anticipation of profits, in addition to this, the deal is eaten up by swaps. The advantage is that swing trading does not take much time.
Features of swing trading:
Medium-term and long-term trading (positional trading) - there are no time limits for such trading. This is exactly the strategy that is aimed at serious and very long-term results. The duration of transactions can vary from a couple of weeks to a couple of years. This type of trading requires a lot of calmness and patience. Position traders have plenty of time, because they do not need to constantly monitor the chart and conduct regular analysis.
Features of medium-term and long-term trading:
Your guide is your personality.
Understand that the best trading strategy is a myth. Each person chooses the best strategy for himself, based on his knowledge, skills and character traits. Only you know how much patience you have, how much you deposit and how much time you can devote to trading. Every Forex trading strategy can be profitable if used correctly.
Most new traders start their journey with scalping or intraday trading, but this is not a smart move. To understand the chart, start with a large timeframe. For example, on the D1 timeframe, there are practically no market noises, and you can see the big picture. Analysis on such a schedule is more effective than on small time intervals. In addition, for such trading you do not have to spend a lot of personal time.
Sincerely, Alexander Ivanov
First of all, I would like to speculate whether it is necessary to draw up any plans, strategies at all? Maybe it's easier to trade, what is called "from the lantern"? I wanted to open a position, opened it, it went in your direction, you are waiting for a profit, no, it means you closed on a stop.
Why do many successful traders advise you to develop your strategy?
Yes, everything is simple, the fact is that if you open without adhering to any rules, in a week you will not be able to answer why this or that transaction was made. It's good if all your trades make a profit (I think only super lucky people can do this), but what if your trades bring a loss? What to do?
We need to analyze, understand what is going wrong. And what can be analyzed if transactions were opened without a system or, in other words, chaotically. There is no need to talk about any analysis, therefore, before starting trading, it is vital for every trader develop a trading system and stick to it.
Trading system (strategy)- this is a set of certain rules by which a trader analyzes, calculates a position and makes transactions. A trading strategy must take into account all possible nuances.
It doesn't matter if it's used working strategy or not. At the initial stage, the main thing is a systematic approach. In the future, you will be able to correct, twist, correct those places that are most vulnerable and that do not allow you to earn.
But there are also historical developments, what were used by traders who made trading strategies for themselves. No need to reinvent the wheel 100 times, take what has already been invented and add your seasoning. Otherwise, you will have to rewrite history and make mistakes already made by the older generation (check out the most common mistakes of a novice trader).
To begin with, a trader must figure out which trading style suits him at the moment.
More experienced traders, I hope they understand why I'm talking about " this moment". A beginner cannot say with absolute certainty that my path is intraday trading, or scalping. Whether you like it or not, you will have to try everything. But in the first couple, you can read about each type of trading, and choose what suits you best at the moment your psychological state.
There are two trading styles: long-term and short-term trading. Many traders will argue with this, they say: " where is scalping, intraday trading, traders investors". I won't argue, everyone has their own ideas, but for me it is the two styles that are the main ones, everything else is, as it were, subcategories.
This type of trading is designed to hold a position for a week or more. This category includes investors who look at the market not in order to make a profit immediately, but just with an eye to the future. Since there is no holding limit for a long-term investor, he, like an investor, is able to hold a position for a very, very long time until it is time to take profits.
This type of trading implies faster work. The short-term trader analyzes smaller fluctuations and tries to make money on the daily interval. This style includes scalpers who open and close more than 50 or even 100 orders per day, or day traders who try to catch intraday movements.
But I don’t advise you to get hung up on choosing a style, it doesn’t matter at all what style others attribute you to. You can open a deal at 5 minutes, and now you are already a scalper, you have held the position until the end of the day, and now you are already a day trader, you see no reason to close the next day, and now you are a long-term trader.
So, choose based on free time. There is time to sit and trade within the day, use smaller timeframes for analysis, there is no time, your intervals are D1, W1 and a month.
At the next stage, the trader must decide what exactly will be used for market analysis (indicators, trend lines, support / resistance levels, fundamental analysis).
Suppose the choice fell on the support / resistance levels (you can use what you like). Let's look at an example of how a trader should act.
First of all, you need to find a certain pattern, from where the price rebounds with a high probability (Fig. 1).
Suppose you see constant bounces from round numbers (1.100, 1.150, 1.200). Run through history and see how the price worked out these levels earlier, if round numbers really give a constant price rebound, analyze how to enter a deal, with a pending order or open on the market.
Rice. 1. The level from which the price constantly bounces.
Figure 1 shows the support level currency pair GBPUSD. It can be seen that the price hit the level of 1.5650 several times and never fixed below. For ourselves, we must note that this level is strong and you can try to go long (buy).
Where is it better to put a stop loss (Fig. 2)? 
Rice. 2. Installing Stop Loss.
After the support level is found, pay attention to the tails (shadows of the candles). The level was tested about 5 times, and the tails stopped at about the same level. For ourselves, we note that if we are right and the pair really goes long, then with a high probability, the price should not be lowered below the tails, which means that an ideal level for Stop Loss has been found.
Where to set take profit (Fig. 3)?
Rice. 3. Choose a place for Take Profit`a.
Take profit can be approached with imagination. There are two levels, one is around 1.5670, the second is 1.5690 (I think it's clear why these levels are marked). When buying from a support level, it is quite normal if we close part of the position near the first target, and leave the rest until target number 2.
On this, the identification of patterns is completed. If you do not have enough ideas to identify patterns, you can use our best practices by going to the Trading Strategies for Earnings section.
Important!! The above example can be used as a basis for entering a position.
The next step is to figure out how much to enter the deal.
This is not difficult to do, I often write about this on the pages of my site, but just in case I repeat.
You must commit to an acceptable risk per trade. Very often they write about 2-5% of the deposit, we will stick to these figures.
What does it mean? For example, your deposit is $10,000, 2-5% will be $200 - $500. That is, in one particular trade, it is allowed to risk $200 - $500.
It remains to calculate what lot you can enter, depending on the set stop. To do this, read the article Leverage in the Forex market, which describes in detail the calculation procedure.
Do not forget that the ratio of stop loss to take profit should exceed 1 to 2. In the example above, it is clearly seen that the set stop is slightly more than 10 pp, the take even to the first target exceeds 20 pp. In this case, the ratio is 1 to 2, and this is normal, as there is further potential for growth.
Develop a profitable trading strategy (system) it is not only to determine the places of entry and exit with the desired density. The trader must take into account absolutely everything:
Be sure to consider your work schedule. When trading on the round-the-clock Forex market, it is very difficult to catch the line between what time to start trading and what time to finish. It is impossible to always trade, the body must rest, and your family also needs your attention.
Very often, traders do not take into account such things as:
It is foolish to rush into battle right away. First, try out the developed strategy on a demo account. Checking the strategy on history is very good, but still in real time, so to speak online, 100% some flaws will appear.
Do not play too much, your goal is only to test the expectations of the trading strategy. If everything goes well and the system works, switch to a real account. Otherwise, correct non-working points and check again.
If everything goes according to plan and your strategy brings positive results after running on a demo account, you can try real money.
And again a word of caution, use the smallest lots on the first pair. When trading for real money, like it or not, emotions are turned on, which in one way or another can interfere with adequate transactions.
Take your time, trade the minimum lot, you will always have time to earn your money, the market was yesterday, is today and will be tomorrow. During testing, try to exclude the emotional component and evaluate the real chances of the strategy to win.
And the last. Create a trading system (strategy) without a diary of transactions, just not realistic. You are required to record all your transactions in great detail. AT the best option, except for writing down dry numbers (I bought at such a price, sold at such a price), most of all you need to know your emotional condition at the time of making and holding a position.
Mark in great detail, in the future, only your notes will help to understand what was done correctly and what was not. Only a trading diary will help you tighten the right screws and make your trading strategy profitable.
This article details about developing a trading strategy. The hardest part of trading is not finding patterns or getting the lot size right, but sticking to your own records.
I am familiar with a very large number of traders who have unique trading systems, they are logical and, when run through history, bring good profits. But unfortunately, they cannot make money on them just because they themselves violate the prescribed rules.
I hope this article will help you create a trading strategy (system), but the rest depends on you and your analytical skills.
Remember, trading, analysis, analysis of transactions - it's only 10% success, the remaining 90% is psychology, faith in yourself and in your abilities. Good luck and see you!!!
Business dynamics require active goal-setting from management. The adoption of specific tactical decisions at any particular moment depends on a number of conditions and circumstances. One of the most important of which is the compliance of these decisions (or, at least, non-contradiction) with long-term, top-level business goals. given vectors of its development. Which together can be called the company's strategy. Thus, the chosen strategy of the enterprise determines the essence of the decisions made, setting tasks for a long period of time. In fact, strategy means for business a vital choice of the meaning and way of its existence. Let's talk about how this choice is made. What do you have to choose from.
One of the main goals of strategic management in an enterprise is to ensure a rational distribution of resources between areas of activity and their effective use in order to achieve the best strategic goals.
Organizational resources are the productive assets that an organization has. The coordinated interaction of resources creates Organizational Competences - the ability of a company to carry out certain productive actions. Those areas of the organization's activities that are most important to it, in which it has achieved relative excellence, and which create fundamental value for customers, are called the "core competencies of the organization."
The main goal of the strategy (according to the resource based view) is to get the company sustainable competitive advantage . A sustainable competitive advantage arises for a company when its core competencies coincide with the key success factors of the industry/markets in which the company competes, the key drivers that determine the success of doing business in these markets (see figure).
Accordingly, the main tasks in the planning and implementation of the resource strategy include:
When planning how the company is going to compete in the market, it is necessary to decide how the company will position itself in the market, and which of the basic strategies will form the basis of the developed strategy.
According to Michael Porter 1 , there are three basic strategies (generic strategies):
1 Porter Michael. American economist, professor of business administration at Harvard Business School, a recognized expert in the study of economic competition.
The Price Leadership Strategy allows you to gain a competitive advantage through the lowest price in the market. In other words, the company strives to produce goods (services) that are the same as those of competitors, but sell them cheaper than competitors.
The essence of this strategy can be demonstrated using the value chain model. The first value chain is averaged over the market, and, accordingly, consists of averaged activity costs and average profit.
The second value chain belongs to the company implementing the price leadership strategy. This company reduced the costs of its activities and thus increased its profit margin and was able to price its product below the market average.
Differentiation strategy allows you to gain a competitive advantage through the production of unique goods (services), such that competitors do not produce. Here we can talk about absolutely unique goods (there are no analogues on the market), or only about some unique characteristics of goods (services). For example: the highest quality, user-friendly interface, customer-oriented service, prestigious brand, etc.
The essence of this strategy can also be demonstrated using the value chain model (see figure).
The first value chain is averaged over the market, and, accordingly, consists of averaged activity costs and average profit.
The second value chain is typical for a company implementing a differentiation strategy. This company has increased the cost of certain activities in order to obtain a product (service) with unique characteristics. Due to this uniqueness, the company can afford to charge a premium markup by setting the price for this product (service) above the market average.
The third basic strategy is Focus. If the first two strategies assume that the companies that have chosen them operate across the entire spectrum of the market (industry), then the focus strategy implies that the company chooses to serve a narrow target niche. By knowing the target customer's needs and price preferences, optimizing its operations, and creating personalized products that meet the specific needs of the target customer, the company gains a competitive advantage over "global" competitors serving the entire market with less personalized products.
CV (Porter) - "don't get stuck in the middle!"
The three basic strategies described above are mutually exclusive strategic alternatives. Companies that fail to develop a strategy in one of these three areas, according to Michael Porter, "stuck in the middle" (stuckinthemiddle).
Porter argues that price leadership and differentiation strategies are so fundamentally different, requiring a fundamentally different set of resources and competencies, that any firm that tries to combine them will "get stuck in the middle" and fail to achieve outstanding results. According to him, such companies are almost guaranteed to be unprofitable and doomed to disappear.
In practice, classical strategies, for all their elegance and logic, do not always work. Firms pursuing similar strategies show very dissimilar results. And companies that don't have a clear position (those that, in Porter's words, are "stuck in the middle" and should, in his opinion, should die) succeed! What's the secret?
Most often, the failure of the strategy is due to the inefficiency of its implementation. Any strategy is only as good as its implementation. This can be devoted to a separate full-fledged material. However, there are other, earlier causes of failure, stemming from the mistake of choosing the most relevant type of strategy for a given market.
Classical strategies (Resource Strategy and Competitive Positioning Strategies) are not always applicable and/or effective in practice. As we remember, classical strategies are aimed at acquiring a sustainable competitive advantage by a company by mastering strategic resources (competences) that are important for this market. Moreover, such resources (competencies) should be valuable in theory, rare, and difficult to copy and imitate. However, thanks to modern financial, information and management technologies, most resources in our time are relatively easily accessible and imitable.
In addition, not all markets have important strategic resources that determine the success of work in this market.
This begs the question, is there any factor(s) missing from the analysis that also fundamentally affect the success of implementing a particular strategy? Or is the list of possible strategies incomplete?
Answering the last question, let's add another strategy to our list - the "X-factors" strategy and consider it further in more detail.
The X-factors strategy can be summed up in a nutshell: “focus on the urgent and the important.”
A company implementing the X Factors Strategy focuses primarily on the following four activities:
Strategic capital is the total pool of an organization's competitive assets. These include:
After determining the composition of the company's strategic capital, it becomes clear what the organization can rely on first of all in its strategic decisions. What can count on when planning a long-term and medium-term strategy. And what assets require development and acquisition in their absence or insufficient development.
The problem field is a set of the most significant problems and aspects of activity for the selected market.
The figure shows examples of problem fields for the gasoline retail market and the non-state pension provision market.
The meaning of the formation of the problem field of the company is the definition of zones and the most important aspects of a particular business, on which it is necessary to focus the attention and activities of the company.
Strategic work (projects) is the distribution of investments of the organization's strategic capital in the current period. In other words, these are the works that currently have the highest priority, are given the most attention by the company's top officials, and in which the lion's share of the organization's strategic capital is invested.
Determination of the composition and planning of strategic work is carried out after clarification of the Strategic Capital and the Problematic Field of the company. The decisions and goals generated in these stages are prioritized and organized into either a strategic plan or a company goal tree.
As I wrote at the very beginning, most strategies fail due to their inefficient implementation.
Performance failures (“holes”) are the most typical mistakes implementation of the strategy. These include:
If you do not pay due attention to this issue, then, according to the law of entropy, performance failures will definitely occur: any system, if it is not supported and developed, tends to self-destruction. Everything tends to move along the path of least resistance: not to strain, not to sink, not to focus, etc. And strategic mistakes are the most costly for a company.
Each of the strategic works (strategic decisions made, strategic goals developed) needs appropriate control and adjustment in the course of execution. This is the only way to systematically and reliably level possible performance failures.
After we have considered several types of strategies, I propose a scheme for choosing the optimal one. The figure illustrates the principle of determining an effective strategy depending on the strategic importance of resources and the ability to exclusively control these resources in the selected market.
So, to make a decision, we have four lines of reasoning:
The success of the company, of course, is determined by the right choice and clear implementation of the strategy. Therefore, it is extremely important to determine the right type of strategy that is most suitable for the market in which the company operates. Here, the most significant factors determining the choice of a particular type of strategy are the factors of the external environment (market), namely the existence of valuable strategic resources on the market and the availability of opportunities to obtain exclusive control over these resources.
For markets where strategically important resources exist, but they are NOT unique and available to most participants, the X-factors strategy may turn out to be the most effective, assuming a clear organization of work to create strategically important resources and competencies, and their effective application to the most important problem areas. this market.
An organization implementing an X Factor strategy is not looking for ways to create a unique competitive advantage (through the possession of a rare, important resource, or a unique competitive position in the market). The success of this organization is based on the correct definition of the problem area of its market, on a clear and objective assessment of its strategic capital, on the ability to organize strategic work and avoid falling into performance failures.
Greetings dear reader! , perhaps the most crucial moment in a trader's career. Today we will talk about how to choose a trading strategy that is right for you.Much depends on this choice. The system will have to be studied and tested for operability for a long time. In the end, it will have to be traded at least for a while. Therefore, first of all, it is necessary to choose a strategy that did not strain the trader, but was as comfortable and understandable as possible. Today we will deal with the selection of such a strategy.
The choice is huge! And every second it gets bigger and bigger. In order not to drown in an abundance of trading strategies, trying, you need to understand what you need.
I note right away that when choosing one or another trading strategy, you need to take into account that not all brokers have the same attitude to various trading methods. Someone forbids opening 10 transactions at the same time, someone cannot close transactions for less than a specified time period. In order not to narrow the search on the technical side of the issue, I suggest using trusted brokers. For example, my favorite broker is . There are no such restrictions in this campaign, and when choosing a trading strategy, you don’t have to worry that trading with it will be prohibited.
I'll tell you a little secret. 99% of trading strategies are profitable! Those. the algorithm that is embedded in them is profitable. Now choice of trading strategy do you find it easier? 🙂 Take your time. The truth of life is that this algorithm stops working as soon as it falls into the hands of a person. Paradox! After all, the algorithms themselves are invented by people. Why do they stop working? The answer lies in the complex nature of man. In his psychophysical features. I will not go into details now, I will only say that the trader himself breaks the strategy algorithm and turns it from profitable to unprofitable. Of course, this is not intentional. A trader on an unconscious level, and often consciously, performs such actions that inevitably lead to the loss of funds. But, I will talk about this in more detail in another article.
Now I propose to discuss the reason for the occurrence of such actions. One of the most common factors that push a trader to make mistakes is trading discomfort. The trading system itself and through which he trades are most often responsible for the comfortable and calm behavior of a trader. If the strategy is incorrectly chosen, then a feeling of some inconvenience, a little stress constantly accompanies the trader. Of course, this greatly interferes with trade. The trader quickly gets tired, becomes irritated and impulsive. And, as you know, in trading you need to be very calm. React to the situation quickly, but without fuss. Nervousness here, of course, is no help. And she plays her insidious role. The trader starts making various mistakes and may lose the deposit.
I think that I conveyed to you the idea that trading should not bring discomfort. Now about how to choose a trading strategy so that it suits you. To do this, you do not need to check hundreds of strategies for performance and choose the right one among them. It is enough to try to work with several strategies of different types. Then a lot will become known about what style of trading you prefer.
The most common division of strategies according to comfort is the activity of trading. There are short-term, medium-term, long-term and combined types of strategies.
Now about each a couple of words for clarity.
This is the style of trading when within one to two days. It is also called intraday trading. As a rule, charts are used here, which consist of bars up to 1 hour. Scalping also belongs to the category of short-term trading. This trading strategy is very often chosen by beginners because of its apparent simplicity. Although in terms of comfort, it is in the very last place. Even many Forex market professionals cannot earn even a penny on it. All because of the increased voltage level. With scalping, the average lifespan of a trade is 1-2 minutes. The trader locks in any profit that becomes available. As a result, hundreds of open and closed deals in a day. Calasal tension! But there are also traders who like this style of trading. They have been receiving for several years. Once again I will repeat. This style of trading is far from for everyone! Units manage to trade profitably here.
It is conducted, as a rule, on charts from an hour. This strategy is more relaxed. Here, the life of the transaction increases to several days, but may be reduced in some cases to one day. I would advise beginners to choose this type of trading strategies. Trade is usually soft, measured, allowing you to think about every step. But, at the same time, it is also dynamic enough to feel the taste of trading. Feel all the pros and cons of the strategy. In general, this type of trade is the most common. Trading strategies of this type are chosen by most traders. Both beginners and professionals.
Sometimes transactions last for years. More suitable for major players market (various funds and banks). This requires significant investment.
When there are deals in trading different type. Sometimes they close immediately, often they last for weeks. It already depends more on the trading strategy. But there are also enough adherents of this style of trading.
It doesn't matter which strategy you choose. It doesn't matter if you are an intraday trader or a long-term trader. The main thing is that trading is convenient. Do not chase profit, especially at first. Get a feel for your strategy. Get used to it. Enjoy the process of trading. In short, get high! For trading in the market is a thrill! When you make a profit, you feel that you are on a wave. You are smarter than a good half of the traders who lost money when you made it. But in everything you need to know the measure. You should not choose strategies in which transactions need to be opened once a year, and rest the rest of the time. That won't work. Achieve comfort in regular trading, but do not forget to rest)). In general, what am I telling you? Start trading and you will feel everything for yourself)).
Work more. Sharpen your craft skills. And soon many operations will be brought to automatism. And trading will become a routine. Kidding)). Believe me, the routine is still very far away. And it's great! It's great to feel the taste of victory! The main thing is not to get carried away. Remember that in trading it is important to maintain balance and calmness. From each previous transaction, only experience should pass into a new one. No worries, positive or negative! Absolutely no emotion from the previous deal. I think this is understandable.
If you have mastered all this text, then you - well done. In fact, this information is taken from my own experience. All this is not just water. This is what every trader goes through. Many people know that they need to pay attention to their psychological characteristics when choosing a trading strategy, but do not apply this knowledge. Almost everyone is drawn to big profits, leaving personal comfort behind. I know. I myself was like that and have not yet completely corrected myself. 🙂 Do not repeat our mistakes! Choose a strategy to your liking, not according to profitability indicators. If the strategy really suits you, believe me, you will earn on it. You will earn much more than you could earn on " ».
That's all. Look for strategies. Test. And trade! Trade! What else forgot to say. 🙂 Don't get hung up on searching " the best strategy". If you feel that trading activity suits you. The method of making transactions and the principles of trading are clear and close to you, so this is yours. If you understand what type of strategy suits you, consider that the job is done! In one segment, all strategies are approximately the same. Every day I invent them in batches. And each seems more attractive than the previous one. There are many people who hardly ever trade. They only test and select more profitable trading strategies. But every time a new one appears on the horizon, more profitable strategy. And everything starts again. Tests, runs, etc. So I want to say to them: guys! stop testing, it's time to earn money! But, do not shout to everyone. In general, do not make this mistake either 🙂. Choose something and work.
Now absolutely everything! Thank you for your attention! I probably would not have mastered this 🙂. Good luck to you! Find your strategy!
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When analyzing a situation associated with a change in the organizational structure, managers, when choosing one or another approach, are explicitly or implicitly guided by the speed of the change, the amount of preliminary planning, and the need to involve other employees or specialists. Successful implementation of change occurs when the given choice is consistent and corresponds to the key characteristics of the situation.
What should be considered when choosing a strategy?
Under certain conditions, each strategy has certain advantages. But at the same time, it is possible to make a rationally justified list of factors that can influence the choice of a manager. These factors are:
The basis for constructing such a list, which is called the "strategic continuum", is the speed of change.
How the rate of change is related to organizational policy (Strategic Continuum)
How is the change strategy chosen?
The options available to the manager are assumed to fall on the strategic continuum. At one end of the continuum, a strategy for change requires rapid implementation, a clear plan of action, and little involvement of other specialists. This type of strategy allows you to overcome any resistance and, as a result, should lead to the fulfillment of your plan. At the other end of the continuum, strategy requires a much slower process of change, a less clear plan of action, and the involvement of people other than specialists. This type of strategy is designed to keep resistance to a minimum.
Implementing organizational change based on inconsistent strategies usually leads to unpredictable problems. For example, changes that were not clearly planned and yet implemented quickly are likely to fail due to unforeseen circumstances. Changes that involve a large number of people and are carried out very quickly usually either fail or do not ensure appropriate participation of others.
What factors determine the position of the change strategy on the strategic continuum?
The position of the change strategy on the strategic continuum depends on four factors:
1. Degree and type of expected resistance. Other factors being equal, the greater the resistance, the more difficult it will be to overcome and the more the manager will have to “move” to the right along the continuum to find ways to reduce it.
2. The position of the initiator of the change in relation to those who resist, especially in regard to his power and authority. The less power the initiator has in relation to others, the more the manager - the initiator of change will have to move along the continuum to the right. Conversely, the stronger the position of the initiator, the more he can move to the left.
3. Availability of relevant information to plan and implement the change. The more change initiators anticipate that they will need information and commitment from others in order to plan and implement the change, the more they should move to the right. Receipt useful information and commitment from others takes time.
4. Risk factor. The greater the real likelihood of risk to the survival of a particular organization (assuming that the situation is not changed), the more one should move to the left.
What is the most common mistake managers make when choosing a strategy?
Organizational changes that ignore these factors are bound to fail. A common mistake managers make is that they move too fast and involve too few people, despite not having enough information themselves to really plan for change.
What position of the strategy on the "continuum" is the most optimal?
Since these factors leave the manager with a certain choice of position on the "continuum", it is probably optimal to choose a point as close to the right edge as possible. This is determined by both economic and social considerations. Forcing change on people can have too many negative side effects, both short-term and long-term. Implementing change using a strategy on the right side of the continuum is often very beneficial to the development of an organization and its people.
Of course, it is extremely important for the analysis of the choice of strategy and personal skills. However, even brilliant personal skills and abilities cannot compensate for a poor choice of strategy and tactics. In a business world that continues to become ever more dynamic, the consequences of bad choices can be extremely dire.
