It is easy to see people don’t all get the same results. Some do great while others do awful and everybody else is somewhere in between. The key is not to develop more skills. It is something else.
Sure, people have a variety of skills and it stands to reason those with the most skills will get better results.
Actually, that is not all the story in this case. It helps certainly, but it is not the main reason.
This becomes readily apparent when you remember the 80/20 rule and the Pareto Principle.
In essence, you will expect 80% of your results from 20% of your staff. When you upgrade the average quality of the group from a skill standpoint, the overall productivity goes up. And, the 80/20 rules continues to apply.
That’s all great, but how do you increase your own personal productivity? Or, your teams productivity?
Think about a group of people in the same job. When you do this, the answer is easier to ascertain. The Pareto Principle will continue to apply meaning the top 20% will produce 80% of your outputs.
Let’s look at the top performers in this last group. Once again, that group will have members with better skills. But, the highly skilled people will also be scattered around including being in the bottom group. Most interesting is some in the top 20% will not have the best skills. So how do they do it?
The answer is leverage. Getting more out than you put in.
Archimedes told us, “Give me a lever long enough and I can move the world.” (Note the slight difference in my article’s subtitle. There are many versions of the quote.)
The whole point is the use of leverage is what you need to maximize productivity.
Here are some quick examples:
- Networking vs. one on one
- Borrowing money vs. using all your own
- Strategic alliances vs. going it alone
- Training classes vs. individual mentoring
Leverage is vital to spectacular success.
Think about cash. If you are investing ten and getting back eleven, that’s good. But, if you can get the same eleven for eight or five dollars, that’s much better. Getting $100 for your $10 is splendid.
So, how do you get this done?
Get a piece of paper and ask your self this question. What can I do or where can I look to get $10 for $1? Do it now.
- Look at the talent available in the market.
- Look at your product/service value proposition
- Examine public relations or marketing
- Streamline some processes
- Stop doing some things entirely
- Partner up and create a joint venture
- Change your customers buying terms
- Get some capital
- Cost savings ideas
- And, on and on
- The key is to think about the big wins. Concentrate on the big ones!
Here’s the point.
If you have a business making 10% net it takes $1M in revenue to net $100K in profit. This means that if you can identify only one idea that you get 10 to 1 leverage on, a $10,000 investment will double your profits.
What is particularly great about this is only your sales force typically focuses on making sales, but everyone has the ability to identify these high leverage ideas.
Of course, this simple idea may not be easy. But, ask yourself, how easy is it to double your revenue?
Make it a point for you to begin this exercise immediately. You will find it the best way to increase productivity.