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Why Technology Managers Should Think Like Charlie Munger When Crafting Tech Strategies

6:48 PM EST on November 7, 2023


    Shot of a young businessman having a brainstorming session in a modern office

    Welcome to the inaugural post of TMBG News, the daily pulse of our flagship annual publication, "Technology Manager Buyers Guide 2024". Our mission is to be the compass that technology managers—those guardians and strategists of a business’s technological ecosystem—rely on to navigate the evolving landscapes of IT management.

    In the spirit of this mission, let's delve into a concept borrowed from the investment world—specifically from the sage wisdom of Charlie Munger, the renowned investor who famously doesn't pick individual stocks. Munger’s approach to investing is about seeing the forest for the trees, focusing on overall performance rather than the minutiae. This is a philosophy that can, and should, be mirrored by today's technology managers.

    The Munger Approach to Technology Strategy

    Charlie Munger believes in understanding the bigger picture. He entrusts the selection of individual stocks to low-cost index funds that are designed to perform over time, rather than betting on the success of single entities. Translating this to the realm of technology management, it's imperative for you as a technology manager to focus on the overarching technology services framework. Your goal should be to ensure that your technology suite not only operates flawlessly but is resilient, secure, and perpetually aligned with business objectives.

    Defining Your Technological Index Fund

    In Munger’s world, the index fund is a diversified portfolio that aims for consistent market outperformance. In your world, the equivalent is a robust technology suite that consistently meets business needs without fail. This means not getting bogged down by the allure of the latest and greatest tech, but rather, defining what services and outcomes are essential for your business to thrive.

    Partnering with the Experts: The Role of MSPs and TAs

    The Technology Manager Buyers Guide 2024 shines a spotlight on vetted Managed Service Providers (MSPs) and Technology Advisors (TAs) who are the experts in selecting the right technologies to fit into your business's unique framework. These professionals are akin to the financial advisors of the tech world, using their expertise to build a portfolio—your technology suite—that's tailored to your business needs.

    By engaging with our recommended MSPs or TAs, you're leveraging their extensive knowledge and skills to manage the majority of your technology requirements. This allows you to reserve your in-house IT resources for critical, business-specific applications that demand a more hands-on approach.

    The Big Picture: Performance, Security, and Continuity

    In conclusion, like Munger’s focus on fund performance, your focus should be on the reliability, security, and efficacy of your technology suite. Trust in our TMBG-endorsed experts to handle the complexities of technology selection, integration, and management. This partnership enables you to maintain a bird's-eye view, ensuring your tech suite is not just operational, but impervious to threats within acceptable risk parameters, and always prepared with a disaster recovery plan that's ready to execute at a moment's notice.

    By following this strategy, you'll always have clarity on your risk levels and progress towards achieving your tech goals—much like Munger with his investments. Let the details be managed by those who live and breathe technology, while you steer the ship towards its business objectives.

    Embrace the Munger way, and lead your technology suite to a future where performance is a promise, security is a standard, and continuity is a given—all within a known and consistent annual cost, and within a defined risk tolerance.

    Stay tuned to TMBG News for daily insights that keep you at the helm of your technological destiny.

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