#57 How To Be Smarter About Risk: Karen Firestone

This show may very well save you money, boost your career and help you make smarter decisions.  

It's about risk.

Our guest is Karen Firestone - author of the new book “Even The Odds - Sensible Risk Taking in Business Investing and Life."  She is President and CEO, of Aureus Asset Management, an asset management firm she cofounded after 22 years as a fund manager and research analyst at Fidelity Investments. Karen is a contributor to the Harvard Business Review blog.

"I think that sensible risk taking is something that we should all think more about," says Karen. She argues that most of us are too gullible.  "It's more fun to be enthusiastic and positive about the outcome of something that involves some risk than be pessimistic and skeptical."

Karen shares her personal stories and knowledge about investments, starting a firm, changing careers, surviving in the workplace and raising kids.  

Karen's four principles of risk taking:

  • Right-sizing. Consider how big the risk is before you commit to a decision. 
  • Right timing. Is this the right time to change your lifestyle or career?  For instance, don't open an ice-cream shop in November!Relying on knowledge and experience. Know as much as you can about the risk you are taking.
  • Remaining skeptical about promises and projections. "If you show up at a blackjack table and you don't know how to play, you are going to be out of money in five minutes."

#50 Building a Better Workplace: Social Psychologist Ron Friedman

The numbers are alarming.  A 2015 Gallup poll found nearly 70% of U.S. employees say they're either bored or disengaged at work.

The cost to employers has been put at more than $500 billion in lost productivity. The cost to workers is incalculable - in human misery, unnecessary stress and lost opportunity.

Workplace psychologist Ron Friedman is the author of "The Best Place to Work: The Art and Science of Creating an Extraordinary Workplace." Ron says there's an astonishing gap between the latest science and most the modern workplace.  He has some great tips for both employers and employees.  

Ron's solutions for employers:

  • An engaged workforce is more creative, focused and stay with their company for a long period time. This saves money.
  • Employees need to be competent and connected to one another, yet they need to have autonomy - feeling they have choice in how they go about doing their work.
  • Invite employees to share their ideas.
  • Encourage learning: give your employees a quarterly reading budget. Establish an office library.
  • Invite employees to take their vacation time and switch off from work at night, so they can live a balanced, healthy life.
  • Workplace design and hiring a diverse workforce play a very important role in creating a better workplace.

Ron's solutions for employees:

  • Reframe the way you look at your job. Present a case that could add value to your employer.
  • Get out of your comfort zone. Greater variety often leads to more work satisfaction.  
  • Look for ways to re-create your job to allow yourself to do more of the things you enjoy doing more often. 
  • Regular exercise. It makes you smarter, more focused and creative at work.