Research Is a Commodity If…

Here’s our spin on comedian Jeff Foxworthy’s “You might be a redneck if…” series.* We call it “Research is a commodity if…” It is inspired by our suspicion that many investment managers do not treat market research as a vital, systematic source of business intelligence.

1. The company conducting the research does not understand the investment management business.
2. The company conducting the research does not understand your company’s business — i.e., exactly how you are different from competitors.

3. Someone within your own company — as opposed to an independent, objective firm — conducts the research, thereby sacrificing candor and perspective.
4. The research methodology is a written questionnaire — as opposed to a phone survey — thereby sacrificing clarity and explanatory detail.
5. You wait for a big fat strategic report while important tactical information lies dormant within your research firm’s computer.
6. The research report is not rigorously checked for accuracy.
7. The results are “statistically significant” yet meaningless.
8. The big fat report arrives and it is too boring (or poorly written) to read.
9. The research findings do not provide actionable information.
10. The research findings do provide actionable information, but your company does not act.

*As in, “You might be a redneck…if your bicycle has a gun rack.” Referenced with permission from Jeff Foxworthy.