Harness the Most Powerful Force in the Universe for Profit

What if you could harness the most powerful force in the universe and use it to drive profit in your life.

I know you are thinking what kind of gimmick is this…harnessing the most powerful force in the universe is for superheroes and late night TV infomercials.

Most people would agree that Albert Einstein is a pretty smart guy.  He ought to know what the most powerful force in the universe is … right?  Einstein is cited to have said, the most powerful force in the universe is “compounding interest.”

Simply put, the law of compound interest says money earning interest, when left alone, creates more money.  Ben Franklin echoed that thought, saying, “Money can beget money, and its offspring can beget more.” Warren Buffett’s partner Charlie Munger expressed a similar sentiment about money: “Never interrupt it unnecessarily.”

Now that is interesting, but how do I apply that to my life.

What if we take this concept of compounding interest and apply it to “continuous improvement”?  What if you made a little improvement everyday in our lives?  What if we looked at each one of those little improvements as investments?  What if we compounded those investments daily, by making daily small improvements a “habit.”

continuous improvment

Credit: Lauro Roger McAllister

 

A few years ago, I turned 40 and thought I should do something radical to celebrate the occasion.  I decided to run a marathon.  I set out to train and downloaded a training plan by Hal Higdon.  As I started running over my 18 week plan, people started telling me about the 10-percent rule.  The 10-percent rule is one of the most important and time-proven principles in running. It states that you should never increase your weekly mileage by more than 10 percent over the previous week.  By adding less that 10-percent per week to my total weekly mileage, I eventually conditioned my body to run a full 26.2 miles.  I was continuously compounding my running milage every week in order to achieve a goal I had previous thought unachievable.

We can also apply this type of thinking in our businesses.  Let’s encourage our employees to make small daily improvements every day so that they compound to huge improvements over time.  These huge improvements lead to higher profits and higher quality for your customer.

In conclusion, every person SHOULD make continuous improvement a part of their daily routines, because of the law of compounding interest.  If every person in an organization can make small daily improvements the outcome over time will lead to higher profits and higher customer satisfaction.

What are you doing in your life to make small daily improvements?

What are you doing to make daily continuos improvement part of your company culture?

What does your scoreboard say?

Scoreboard

Airplane instruments are a pilots scoreboard

Every person and organization needs a Scoreboard to keep track of their progress towards achieving their Goals.  Scoreboards are a feedback mechanism that allow us to determine, if the results we are getting are on track with our Goals.  Our Goals need to be in alignment with the results we are achieving.  If we find the results we are achieving are different from our Goals, we need to make adjustments to get into alignment.

I often think of this in terms of buying an airplane ticket.  Let’s say I buy a ticket on Delta Airlines to fly from Atlanta, GA, USA  to Cape Town, South Africa.  I buy the ticket with the expectation that Delta is going to get me to my destination halfway around the world.  Delta then pays a flight crew to make a “flight” plan.  The “flight” plan starts with a goal; get the plane and crew safely to Cape Town.  The flight crew sets up milestones along their flight plan.  Once the plane takes off and is in the air, the pilot monitors the planes instruments continually looking for feedback on his current status.  Whenever the pilot gets feedback that he is slightly off course, he makes an adjustment.  Periodically, the pilot hits his milestones because he has made lots of adjustments along his flight path.  Ultimately, the plane and its crew arrive at their destination and achieve the goal of their flight plan.

The pilot has a PLAN or GOAL.

The pilot watches his SCOREBOARD for FEEDBACK.

The pilot makes ADJUSTMENTS to get his current results in ALIGNMENT with his GOAL.

If the pilot has done a good job of monitoring his SCOREBOARD and makes ADJUSTMENTS that get him in ALIGNMENT during his flight he is sure to achieve his GOAL.

Every person and organization SHOULD have a scoreboard, because they need feedback on how they are performing to their goals.  Every person and organization CAN develop a scoreboard that corresponds to their goals.

Do you use a Scoreboard for your personal or organizational goals?  I would love to hear your story in the comments below.