Return on Effort simply calculates your return on the effort placed.
Just to summarize in generalities, the less effort you place on something the smaller your return. Your return can be in the forms of money, productivity, feeling of self worth, love, extended life, etc.
Taking a quick look at how it applies to work ethic I notice a few things. Those around me that work the hardest, put in the time needed, and dedication get a larger return than those that do not. Of course there are shortcuts which are building systems. Building systems though really isn’t a shortcut becuase it requires an even larger front loaded effort to set up the system. This can be automation of an email program, use of a CRM, etc. Still lots of effort on the front.
However getting back to the people that put in the effort, they see the results faster and tend to have less frustration. Return on Effort is amplfied when working for a small company or if you are self employed. The return can increase exponentially as the time investment (which can equal effort in some cases) is banked up.
Here’s an example:
An owner of ABC Business diligently works from 7am to 7pm, whilst the owner of XYZ company works from 9am to 4pm. Now all things being equal as far as productivity per hour is concerned, ABC is inputting 12 hours into the equation while XYZ inputs 7. Not a lot of difference in a day. But in a week that 5 hour difference is amplified to 25 hours of difference. Over a year that number is 1300 hours. Chances are ABC is also working weekends. And let’s just say a modest 10 hours per weekend. That’s another 520 hours bringing the total edge to 1820 hours per year… yikes! This sounds strangely like Malcom Gladwell’s 10,000 hours.
The 10,000 hours crew seems to develop a higher level of passion for their work and typically improves success to failure ratio (which I’ve heard is 1 success for every 3.8 failures for entreprneneurs).
Based on this, are you maximizing your investment of effort on the front end to achieve the returns you are looking for? Or are you unhappy, jealous of competitors, frustrated, etc?
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