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You are head of a staff unit reporting to the vice president of finance. He has asked you to provide a report on the firm's

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You are head of a staff unit reporting to the vice president of finance. He has asked you to provide a report on the firm's current portfolio, including recommendations for changes in the current selection criteria. Doubts have been raised about the efficiency of the existing system given the current market conditions, and there is considerable dissatisfaction with prevailing rates of return. You plan to write the report, but at the moment you are perplexed about what type of approach to take. Your own specialty is the bond market, and it is clear to you that detailed knowledge of the equity market, which you lack, would greatly enhance the value of the report. Fortunately, four members of your staff are specialists in different segments of the equity market. Together, they possess a vast amount of knowledge about the intricacies of investment. However, they seldom agree on the best way to achieve anything when it comes to investment philosophy and strategy. You have six weeks before the report is due. You have already begun to familiarize yourself with the firm's current portfolio and have been provided by management with a specific set of constraints that any portfolio must satisfy. Your immediare problem is to come up with some alternatives to the firm's present practices and to select the most promising for detailed analysis in your report. 8.6. Should this decision be mde by you alone? Why or why not? 8.7. If your answer to the above question was to involve others, which alternative in Eigure 8.2 should be used in making a decision? Justify your choice. 8.8. What are the most important considerations in deciding whom to involve in this task? 8.9. If others are to become involved, how much empowerment should they have? What would you do specifically to achieve the appropriate level of empowerment

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