Investing our time wisely creates leadership leverage (part 3)

We left it yesterday with, “what does it mean to leverage leadership?” What it means is that we invest more of our time on leadership activities that generate bigger returns, and we spend less of our time on other activities that generate smaller returns. Investing versus spending. Here’s a money example. You have $10,000 in a savings account. With a rate of 0.05% you will earn about $50 in profit over ten years. The S&P 500 has historical annual returns of well over nine percent. If you got that over nine percent annual return on your $10,000 for 10 years, you will get about $16k in profit. Same capital. Same period of time. Bigger returns. We want to do the same thing as leaders. Invest more of our time where we get the bigger returns, and spend less of our time on “savings account” filler stuff. The investing of time in the “right things” is the leverage. All of this leaves us with another question. What leadership activity investments should we be making? That is for next time in post 4 of our series.

by Jonathan Wilson

Jonathan is the Head Coach at Sandcastle Company, a Seattle-based leadership training organization. His first book, Future Leader: Rebooting Leadership to Win the Millennial and Tech Future [link], is now available. Jonathan regularly writes and speaks about The New Leader Way, leadership resilience, and the future of work. He has years of leadership experience in both the public and private sectors, a master's degree from Seattle University, and professional coach training from the University of Miami.

Filed under: Leadership

Published on January 25, 2019

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