How to Use The “Productivity Pyramid” To Transform Your Productivity And Profitability

One of the major reasons why most people aren’t as productive as they want to be is because they focus on doing all the wrong things.

That’s why today I want to introduce you to a simple tool called the Productivity Pyramid.

It’s something that will help you become a LOT more effective in a lot less time … and will also make your more profitable in your business.

The reason this works so well is because it forces you to focus only on what matters – results.

Now before I tell you what the Productivity Pyramid is and how it works, you first have to understand …

The Value Of Your Actions

Most people never think about the actual VALUE of their actions.

They just blindly start going down a to-do list without first considering the value of the thing they’re about to do.

They also don’t know what the value of an action to them is long-term – so they ultimately don’t know the difference between an activity that’s only going to give a little bit in the way of results (or a little bit of money) …

… and an activity that will give them bigger results, increase the value of their business and pay them dividends and profits for the long-term.

For most of us, we haven’t gotten crystal clear on the handful of activities that bring us the highest returns … and that profit us the most.

But here’s the thing …

That’s where you can get the most leverage out of every action you take.

When you organize your days, your weeks, and your life around making sure you get only the highest-leverage activities done – because if they get done, you create value, and the value creates money, income, and more time freedom.

Enter “The Productivity Pyramid”

This is the same tool I use to organize my life and what I focus on each day, week and month.

As we just covered, not all the activities we do give us the same amount of value.

The productivity pyramid will show you how to pinpoint the highest value, highest return money-making activities that you do, so you can focus on them with your attention and time.

Here’s how it works …

 

Take a look at the first level of the pyramid.

That level is zero, or negative value activities.

This is the time you spend wasting on things that don’t bring any value and oftentimes actually take your energy and attention away from you. 

Next, going up a level on the pyramid you have the low-dollar per hour or low-value activities.

 

These are things that bring you a low-dollar per hour return – things like shopping, checking the mail, running errands – that kind of stuff.

It’s stuff that needs to get done but could easily be outsourced for a few dollars per hour.

The next level up on the pyramid is high dollar per hour time or high-value activities.

 

These are activities that bring you a high return on your time invested immediately.

This could be things like talking to customers … doing sales … working on some marketing copy … etc.

It brings you money right now and it’s high dollar per hour value because to outsource it would cost a high dollar-per-hour rate.

 

Finally, the highest level on the pyramid is what we call high lifetime value.

These are activities that pay you for the long-term. They keep paying dividends on and on for years, decades, sometimes even for life.

Some activities that fit this category could include working on investing, hiring someone that’ll build your business, or working on your health. Ultimately these are important (but not urgent) activities that will pay you for life.

So to summarize we have:

  • Zero value, zero-dollar activities
  • Low value, low-dollar activities
  • High value, high-dollar activities
  • High lifetime value activities

Now, here’s the key with the Productivity Pyramid …

By identifying exactly which activities bring you the most value, you can begin making those the highest priority to do each day.

The more consistently you can focus only on those activities day in and day out, the better your results. You’ll notice that you become more successful, you start making more money, and you end up with a lot more energy – all because you’re no longer wasting it doing things that don’t bring you any value!

This is why inside of my real estate business for example what I spend most of my time doing is finding and negotiating new deals. Finding a new property to invest in is a very high lifetime value activity because a new investment is worth hundreds of thousands of dollars to me in the long term.

I have a property manager who I pay a small fee to and she is responsible for all the day to day logistical and administrative tasks, which are much lower value.

Now that you understand how the Productivity Pyramid works, it’s time to do one yourself and identify those actions that you take in your life and business that bring you the big results.

Step 1: Identify all your zero value, zero-dollar activities.

Remember, this is stuff that doesn’t add value to your life. Maybe it’s mindlessly watching television. Maybe it’s surfing social media. Write all this stuff down and make a commitment to not do this anymore (or significantly reduce the amount of time you spend doing these activities).

Step 2: Identify all your low value, low-dollar activities.

These are the things that you could easily hire someone else to do for you, probably for around $10 – $15 an hour. This can be errands like buying groceries, taking laundry to the dry cleaners, shopping for office supplies, etc. Once you’ve identified these, delegate them to someone else as soon as you can!

Step 3: Identify all your high-value, high-dollar activities.

Typically this can be things like working on a marketing campaign, selling to a customer on the phone, creating a new product, etc. Make time first thing in the morning to work on these kinds of activities.

Step 4: Identify all your high lifetime value activities. 

This is all the stuff that’s VERY important, but you probably won’t see the “payoff” way down the line. This can be working on your health … grooming a protege to take over your business … making an investment in a particular software system for your business … or anything else that has a high pay off in the future (just not immediately).

If you’ll follow those four steps, then you can’t HELP but become very productive and effective in your life. And soon, you’ll start reaping the rewards, like success, a greater income, and a lot more energy in your day-to-day life.

So make sure to go through these four steps now and identify your high-leverage activities. And then tomorrow, get to work on them!

You’ll thank me later.  🙂

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