This week I talk with Gerry Brockman, who has worked with Wall Street M&A firms, a major airline a trucking company & even a tech startup. In each case his job was to help manage the Opportunity Cost of decisions with a big risk/reward factor.
Gerry will talk you through the steps you can follow to apply the same process to your business decisions.
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[bctt tweet=””You need to understand your rewards relative to what kinds of risks you’re taking.”” username=”dynasty_leader”]What were the takeaways?
[3:35] How to think about opportunity costs.
[5:15] What are the 4 levels of value creation? Gerry shares simple text-book definitions.
[7:55] How can small businesses evaluate risk?
[9:00] Let’s talk about the risk/reward concept.
[12:25] How do you apply these text-book concepts in real-life?
[18:15] Gerry shares an example of how to apply these 4 principles in a real life scenario.
[28:15] The 4 levels of value creation take a lot of the guess work out of important risk/reward situations.
[30:25] Why Gary believes making decisions from the gut is a bad idea.
[31:10] Use these 4 levels as a framework and work from there.
Below are the slides that Gerry talks through in our discussion of Opportunity Cost and Value Creation.
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