Eric Siu explains how to think about team roles using investing terms. High alpha means high return and impact, low beta means stable and predictable. Put your best people in roles that match their strengths, not in positions that waste their potential.
You know, in investing there's a concept of high alpha and low beta, right? How would you define those 2 if you had to define those?
So high alpha, from my understanding, is like high return. Like you can end up making a lot of money on something.
So my point of saying all this is that I hadn't thought about this this way. Like obviously high alpha and low beta applies to investing, but you're also investing in people too. And so I was talking to someone on my team. I'm like, hey, how would you define yourself? She's like, well, I'm very high alpha. Like she is jumping around. She's solving a lot of problems, right? I was like, yeah, exactly. That's why the role that you're in right now is actually a low beta role. You actually just need to make sure you're running the trains on time. That's why you're the right person, but you're in the wrong seat. And so a lot of times I think we need to think about our people as investments and think about, hey, like, are they actually high alpha, low beta, and are they actually in the right role? And that's something I don't think enough about. If you want more insights like this on AI, marketing, and business, follow to learn more.
