There are powerful time management principles you can use to get more done and become more effective. If you are a procrastinator look at the time management advice, looking carefully at the time management principles explained by business management thinker Joseph M. Juranof, known as the Pareto principle, or the 80-20 rule. You will also find a three-step program to beating procrastination.
This page is dedicated to teaching time management principles to those who have no problem with procrastination; they just have too much to do given the amount of time they have. If that describes you, this page is dedicated to you.
The Principle of the Lever
In physics, a lever is a rigid object that is used with an appropriate fulcrum or pivot point to multiply the mechanical force that can be applied to another object. This leverage is also termed mechanical advantage.
Archimedes once stated: If I had a lever long enough I could move the world.
In finance, leverage is borrowing money to supplement existing funds for investment in such a way that the potential positive outcome is magnified. It generally refers to using borrowed funds, or debt, so as to attempt to increase the returns to equity.
Time Leverage in Business
When we refer to time leverage in business we talk about freeing ourselves from trading dollars for hours worked. Since a lever is a device that multiplies the effort applied, if we leverage our time worked, we can achieve productivity to magnify our work effort a thousand fold or more.
Of the powerful time management principles, then, the most powerful one is the lever, which means “DELEGATE THAT WHICH OTHERS CAN DO”
How much time can we save in a day? It’s important to use time management techniques to be as productive as possible. But time management only saves us time to the extent we work more efficiently. However, no matter how productive we are and how much time we can save, we are all still given only 24 hours in a day. So how can we use those hours given to us to get so much more output than the average person? How can we use the time management principle of the lever?
No Time Leverage
In the situation where you are an employee you have no time leverage. You are selling your time for dollars; only the employer has time leverage, based on the number of employees your employer has.
Three Ways to Use Time Leverage
Time leveraging allows us to multiply the effort applied. There are three ways business owners can leverage their time:
- By hiring employees and paying them less than their value to you. In other words, you earn money for each hour your employees work. The amount you earn is the difference between their total pay (including benefits, taxes, etc.) and their value to you multiplied by the number of hours they work.
- (employees’ productivity per hour – employee pay and benefits) x number of hours employees’ worked = your earnings
- By engaging an agent, perhaps training him, and eventually receiving a portion of the profits the agent earns. This can easily be seen in the real estate industry where the real estate broker has a number of agents, each of whom sells houses and shares the commission with the broker.
- By working synergistically with other people so that the value created when two or more people work together results in greater output. If you assemble an entire team of like-minded individuals, each bringing their particular talents to the table, a large amount of value can be created, thus multiplying the effort of each individual person.
All three of these methods are legitimate ways to leverage your time. Personally I like the third method because it sets up a win-win situation. I look for win-win situations because they are more stable over a long period of time. When each person participates because it is in his best interest then you have established a long-term business plan that allows each person to leverage time.