Accountants and Financial Wizards know how to calculate Net Present Value, that is the present value as compared to some future projected value.
We can do the same with our time choices. What is the value of the activities you are deciding between...not today, but well into the future.
The Net Present Value of kid's soccer games, of executing on a business plan, of eating and exercising right cannot be measured in short time scales. Instead, they should be measured in lifetimes and legacies.
Many real estate agents have a sharp understanding of how price works with product and goods. In service industries though, understanding price is much more challenging.
Intuitively, we know a retailer won’t sell something for less than they paid for it (at least not for long). But in services, the cost of production is much harder to identify. For this, we must look at the value of the providers time to arrive at a price to charge.
More importantly, service providers must increase the perceived value of the service in the mind of the buyer, because that’s where the money really is!
As we talk about mastery, the first thing that we're going to have to master is mastery. We're going to have to get really good at getting really good and so some of you have heard about research that was done on how we get to expert level performance. This was made really popular. The research of K Anders Erickson was been really popular by Malcolm Gladwell as he taught us this rule as to how many hours it takes to get to mastery and how many hours have you heard it takes? 10,000 hours of doing something. Now I want to warn you, it's not just 10,000 hours of doing something right? The golf courses of America are littered with evidence that just doing something a lot does not make you good at it, don't you agree? In fact, what Anderson proved was that it's 10,000 hours of deliberate practice, which is going to require deliberate actions and feedback. So over the next little while here, we are going to go through a three step process. The first thing we need to do is we actually just...
Well apparently I got a few of you fired up yesterday when I said something crazy, which is that goals don't work. I'm not alone in this. James Clear says the same thing in the book atomic habits. He says, "I've found that goals are good for planning. Your progress and systems are good for actually making progress."
I've come to define goals this way. Goals are a temporary place holder for a thought experiment. You see, a goal is simply there to help you think backwards. The actions you need to take today.
Scott Adams goes even further on this. He says, goals are for losers because you see, if you look high performers and low performers both have goals, but higher performers have systems. They don't worry too much about the goals and they focus on the systems that actually get them there. He says, you don't need goals.
What you actually need are simple systems that improve your odds. So today as we're again, continuing on this path of revisiting our goals for 2019 we visited and our...
It's July 1st and this is an important day in the life cycle of a business owner or business leader. That is, it's the first day of Q3. It's the first day of the second half of the year. It's important to take stock of how your year is going. Actually dust off that business plan you worked on last fall or early winter and find out how are you doing compared to how you thought you would be doing by this time of year.
Now what many folks do is they get a little too fixated on a what are called the lag measures. The actual results of the business-- maybe, revenues or units closed or even profit. What we also want to do though is to review how are we doing on the lead measures? How are we doing on the plan that we created when we wrote that business plan. The business plan wasn't just about what results would we get but what activities we would take and we needed to compare our goal versus our actual as it relates to the results, but we also want to compare our goal versus actual...
Action cures fear. Inaction breeds terror. This was said by Douglas Horton.
So many of us wait around to feel motivated before we get into action, when in fact, action will cause motivation. The fear, the anxiety we feel will actually start to go away as we get into the right action on them.
Sometimes we feel like we have to take massive action toward a goal. Not True! We simply need to take some action--Micro-actions moving toward our goal. As we do that, the fear, the anxiety will begin to go away.
One of two things will happen when you take action. First, you'll move toward your goal and that's great. It gives you great information that you should do more of that activity. Or it won't work, it won't move you towards your goal. Either way, you're going to feel great that you did something. Now take a new action and move toward your goal.
We often get paralyzed waiting for motivation to show up. Instead, let's take action and let the action create...
There's an amazing scene in the old movie Back to the Future that I think perfectly depicts, one of the challenges that we face everyday with our productivity.
I don't know if you remember this scene, but it's during the Under the Sea Dance, and Marty's up on stage playing guitar. He's looking at a photo of him and his siblings in the distant future that are being impacted by what's happening right at that moment. And because different choices are being made, his brother and his sister start to disappear from the photo and, in fact, he starts to disappear. You'll remember his hand fades and disappears as it looks like maybe his parents aren't gonna get together.
When you think about the goals that you have about the legacy that you're trying to leave, what I want you to do is I want you to think about that picture that you have of the future. Then like a good time traveler, reverse engineer back to today and make choices that move you toward that picture and...