Second Newsletter: The ‘X’ Factor
There is a story of a consultant brought into a billion dollar atomic power plant to solve a technical problem that was reducing the efficiency of the entire operation. The plant’s engineers had been unsuccessful in identifying the source of the problem, let alone finding a solution. After two days of diligently studying the hundreds of dials and gauges in the control room, the consultant climbed a ladder and marked a large black ‘X’ on one of the gauges. Sure enough, when this apparatus had been replaced, the plant returned to full capacity. A few days later, the plant supervisor received an invoice from the consultant for $10,000. When he questioned the size of the bill, pointing out that it seemed excessive based on the work performed – in his words, “standing around for a couple of days and then marking a black ‘X’ on a gauge” – the consultant broke his invoice down this way:
For placing ‘X’ on gauge: $ 1.00
For knowing which gauge: $ 9.999.00
This principle applies in everyday life as well. The ‘X’ in your life represents where to focus your attention, your time and your energy. This ‘X’ is your Focal Point – the one thing you can do, at any given moment, to get the very best result in a specific area of your life. With regards to your Health and Fitness, for example, your Focal Point ‘X’ might be your weight, or your pulse rate, or your blood pressure, or the size of your waist and so on. In your Family and Relationships, it might be the amount of quality face-to-face time you spend each week with the most important people in your life. When examining your Money and Investments, a valuable Focal Point ‘X’ is your burn rate – i.e. how much money you require each month to meet all of your expenses. This brings us to the area that most frequently turns out to be of primary interest to participants in The Winning Way in business Coaching & Mentoring Program. An extraordinarily valuable Focal Point ‘X’ in this area of your life is your “hourly rate.” We find that, even among the very highest earners – those earning in excess of $1 million per year – this concept, once embraced and applied, proves to be crucial in their quest to move up to the next level.
Simply stated, your hourly rate is your annual income divided by 2,000. If you are currently earning $100,000 per year, for example, your hourly rate is $50 per hour. Why is this simple concept so important? It is the key to ensuring the proper allocation of your time and energy. A simple way to assess the efficacy of your performing any task is to ask this fundamental question: “Would I pay someone $50 per hour (or whatever your hourly rate is) to do this task?” If the answer is no, then it is not the highest and best use of your time. You should either eliminate the task or delegate it to a qualified person earning the appropriate hourly rate.
By the same token, if your goal were to earn, say, $200,000 per year, you should not spend time or energy on tasks that are worth less than $100 per hour. So, what is your current hourly rate? What is your 12-month goal? Do you spend any time in your daily work on tasks for which you would not pay someone your desired hourly rate? If not, congratulations! You are well on your way to achieving your goal. If so, which tasks will you eliminate? Which tasks will you delegate? To whom? Such choices will prove to be key determinants of the probability of your reaching your goal.
We have had several requests for a bi monthly newsletter, please reply to info@WinningWay.com.au if you would like to grow your business quicker and gain more useful information bi monthly.
Have a wonderful and productive month!
The purpose of this newsletter is to help focus your attention on those areas of your life upon which we will work during our time together. This act of observing – focusing upon – these critical life elements ensures maximum return on your investment of time and energy.
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