Monday, July 26, 2010

R-Criteria, P-Criteria

Many years ago I read a brilliant book

"Kaizen" by Masaaki Imai.

In that book, I read a superb and simple concept of

R-Criteria and P-criteria.

Therein it was mentioned that the western world is basically R-criteria based.

R-Criteria stood for Result-Oriented criteria.

This criteria was based on the philosophy that result was all that matters.

If result is not as per the desire, nothing else matters.

On the contrary,

the Eastern world was said to be basically P-criteria based.

P-Criteria stood for Process-Oriented criteria.

The basic philosophy behind P-Criteria was that the process is critical to achieve the desired results.

Though results are what we seek, process is where the focus should be.

If the process is right, the result has to be right.

Conversely, the result just can't be right if the process is faulty!

Successful result is not an accident.

It is the result of a successful process.

Everything is logic, nothing is magic!

Zig Ziglar, in his best seller "See you at the Top" said

"....when you choose a habit you choose the end-result of that habit...."

This can also be interpreted as

'.....when you choose a process, you choose the result of that process...!!!'

So, if you didn't like the result, don't bicker or quit,

just change or improve the process!

This applies in every field of life including Stock Trading!

All traders seek profits.

Big, Recurrent, Consistent profits.

When they don't get the desired result

they react in all kind of ways

except the P-criteria way!

They are so much result-oritented

and so much hurt with the result

that they fail to look at what made the result go wrong or fall short of their expectation!

Professional traders never bother about the result!

Don't get me wrong.

They are concerned. But they are not worried.

They focus their energies on the process.

They know that if their

what-whether-why-when-how-how much

about a trade is Ok

then outcome has to be OK!

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