The Way To Measure Your Productivity As An Entrepreneur

The Way To Measure Your Productivity As An Entrepreneur

measuring-your-daily-value-creation-by-dan-martell-001

How much value did you create today? What about yesterday?

Want to know the best way to score yourself?

You need to learn the Entrepreneurial Scorecard (all credit goes to Todd Herman, creator of the 90 Day Year).

This framework is the only one I’ve found that allows founders to self evaluate their daily activities and accurately measure how those tasks measure up with your business’s growth.

Warning:

Getting REAL about the true value of how you’re spending your time can be a humbling and even cringe-worthy experience.

Kinda like taking a blue light to the honeymoon suite of a Motel 6.

But stick with it.

It’s also the only way to gain breakthrough insights, and make the big time course corrections that spark massive growth this year.

Don’t miss the opportunity to really assess your impact.

(and give yourself a well-earned “raise” while you’re at it)

Watch my quick breakdown on Todd Herman’s Entrepreneurial Scorecard.

At a high level, here’s how the scorecard works:

  • Create 4 buckets of activities: Admin, Work, Mgmt, Strategy
  • Measure each with a monetary value: $10, $100, $500, $5000
  • Focus on moving your way up the value chain (working ON vs. IN)

Measure each activity for what it is, then tally up your time for the day to get your daily value creation score.

So… what’s your score for yesterday?

Did you crush it at $1000+ day, or did you pull in a $100 dollar day?

That’s the question to answer then leave a comment.

If you spend all your time on $10 dollar tasks then you have a huge opportunity to build leverage by pulling in part time remote contract workers.

Start with the low value stuff, then work your way up.

Most fortune 500 CEO’s spend 90% of their time thinking strategically.

There’s a reason for that.

 

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  • http://aceconcierge.net/ Ace Concierge

    Absolutely Dan! This is exactly what I share with my clients. They need to focus on their core genius versus the low payoff activities that don’t represent the best value for their time nor do they truly generate revenue.

    • http://twitter.com/danmartell Dan Martell

      Core Genius FTW!

      100% agree.

      It’s about buying back your time!

      DM

  • http://www.nine10.ca/ Richard Podsada

    One thing to note:

    Even though today your Work/Mgmt tasks might only be worth $100/$500 (or whatever arbitrary number), the whole point of Strategic work is to increase their daily value.

    Sitting and doing strategic work by itself is worthless. I can make all the ideas & plans I want, but if they never see the light of day, I might actually make more impact by doing admin tasks. You can only realize that value through implementation.

    In this sense, you’ll know you’re realizing the value of your Strategic time when your Work / Mgmt time generates more daily value than it did before. Maybe a work task that used to take 10 hours now takes one click from automation. You’ve just increased the value of that task 10X.

    One game you can play is to try to raise the value of your Work/Mgmt tasks as high, or even exceeding, your Strategic value. Of course, that will never happen. The more valuable your Work/Mgmt tasks get, the more value your Strategic time will generate.

    You can think of it like a worm, moving forward by first stretching it’s head out, placing it where it wants to go, and then pulling up the rest of its body to keep moving in a direction. The value of these tiers can work the same way.

    • http://twitter.com/danmartell Dan Martell

      Richard,

      I’m not sure I agree with you … the goal imho of scaling a business is spending more time in the higher bucket to where you day is 50+% in strategic thinking work because you’ve built your team that way.

      My approach is about building and scaling a team, it’s not about increasing an individuals personal time … in many ways it’s about “Buying back your time”.

      I do like your thinking, but not sure it fits the context of the framework per se.

      my2cents.

      Appreciate the comment.

      DM

      • http://SteveDaar.com Steve Daar

        hey Dan – – there’s a good chance that I’m stuck in smaller thinking but how is there even that much strategic thinking work to be done?

        if we were to assume a 40 hour work week and 50% in strategic thinking work…..how is there 20 hours of strategic work to be done per week?

        i do see what you are saying re: building & scaling a team so that you’re not stuck in a cycle of

        a) personally create strategy
        b) personally manage & execute strategy

        there would have to be other things that fall into the ‘strategy’ bucket to be able to command that number of hours, yes?

        • http://twitter.com/danmartell Dan Martell

          Steve, if you were running a $10M+ year business with 7 distinct functions and major partners, you’d have enough strategic thinking to do 🙂

          DM

      • http://www.nine10.ca/ Richard Podsada

        I might have mis-wrote what I meant there. I didn’t mean for YOU to do the Work/Mgmt yourself, I meant to increase the value that your employees can generate doing that work through the strategic work you are doing… know what I mean?

        • http://twitter.com/danmartell Dan Martell

          Richard, totally get it now … my buddy Merc says you need to help your team spend more time doing the work vs. finding resources / information / tools. Got it.

          • http://www.nine10.ca/ Richard Podsada

            Thought it would make sense. 😉 My goal was to provide one example of what the outcomes and goals of your strategic work could be, something that can be measured and implemented. Without implementation the strategic work is worth less than the administrative.

          • http://twitter.com/danmartell Dan Martell

            Agreed.

  • http://martinmarketing.ca/ Tammy Martin

    Ironically this is the exact revelation I came to for my 90-day year for the first quarter this year. Spending one hour a day working ON my business instead of IN it. I know I was doing work ON my business last year, but I never laid out a plan for how much time to spend in that bucket each week until now. Thank you for illustrating your point so eloquently. I first heard about the concept from Perry Marshall. He has a chart in his 80/20 book about it, but this concept takes it a step further into action, and why we do it. Keep up these awesome videos Dan!!!

    • http://twitter.com/danmartell Dan Martell

      Tammy,

      Absolutely my pleasure… I love unpacking complex solutions to challenges in an entrepreneurs life with a simple framework that brings clarity … so happy it resonated.

      Keep the comments coming.

      It’s more than appreciated!

      DM

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