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.
(Click Dynasty Leadership Podcast in iTunes or Dynasty Leadership Podcast for Android to find the podcast and subscribe. You can also listen directly from your computer by clicking: Dynasty Leadership Podcast.)
[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.
[foogallery id=”824″]
Leave a Reply