What Is CEO Time?
For many of us, it could be triple the value of what it is now. Meaning: Your company could be earning 3 x as much money. (We’ll assume your compensation stays the same!)
Ask a CEO or Small Business owner how he divides his time between CEO work, Managing work and “Chief Employee” work (where he actually does work an employee could do.) Most will say “10%, 40%, 50%..” It’s likely that many of us spend even more than half our time on work we could and should delegate. But, taken at face value, in a 10 hour day, many spend:
1 hour on CEO Time (planning, thinking ahead, etc.)
4 hours on Managing – asking/telling others what to do.
5 hours on “Chief Employee” work – doin’ it, doin’ it, doin’ it.”
If you’re a sole proprietor, then, of course, you have an excuse. Or do you???
• “It would take me twice as long to train someone to do it as to do it myself!”
• “No-one can do it as well as I do!”
• “No-one seems to get how big a job this is!”
Right. And how are you going to grow your business?
Let’s suppose that the value of CEO work to the company is $300 an hour, you could hire a manager for $50 an hour, and an employee for $15 an hour. Another CEO does the opposite – spends 50% of his time as a CEO and 40% as a Manager, only 10% doing employee work.. Hires others to do work he doesn’t have time for. Which one brings the most value to his company and himself? And which one are you?
How CEO’s use their time each day!
CEO #1
% Time Day Hours $/hr. Delivered Value
CEO work 10% 1 300 300
Manager work 40% 4 50 200
Employee work 50% 5 15 75
Total 100% 10 575
CEO #2
% Time Day Hours $/hr. Delivered Value
CEO work 50% 5 300 1500
Manager work 40% 4 50 200
Employee work 10% 1 15 15
Total 100% 10 1715
Annual Summary : CEO #1 = $172,500 CEO #2 = $514,500
Which number would you prefer? $172,500 or $514,500
One of the fundamental causes of small business problems is not because the owner/CEO doesn’t do enough, but because he/she does too much of the wrong thing. See if the reasons he does this resonate with you: “But I really like to do it,” “But you just can’t get good people,”” I’m too busy to look….” Yep, B.S.
The good news: Once you understand the problem you’re creating, you can create change, and triple your value to your own business. You will probably find that you get a lot more satisfaction out of your new job, as well as your new income! You can do this yourself, or you can get a little help from me.
