What is the application of Leverage in an organization? Leverage is simply about getting more with less. More productivity, more results, more money with less effort, less energy and less of an investment.
The actual definition of Leverage is as follows; Leverage is the ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources. In other words, leverage is the advantageous condition of having a relatively small amount of cost yield a relatively high level of returns.
To apply the Power of Leverage into any organization you must first commit to the implementation of Systems. Systems stand’s for Saving, Yourself, Stress, Time, Energy and Money. Having proper systems in place will allow your business to work – instead of your working. Leverage is simply all about systemizing the routine. In other words, a business system is a repeatable process that produces a profit. Think of systems as the grease in the business that gives it the ability to run smoothly.
The first place to start leveraging your organization is with your people. Leverage is first in getting more from yourself, enhancing your own business knowledge and skills, developing yourself personally in addition to increasing your stamina & energy. Leverage next starts with replacing yourself or much of what you do personally. Leverage is in enrolling, empowering and properly managing your team. Leverage is all about proper time and skill management, and then training. All this will gain you the ability to get more from your team by properly training them, treating them well, and giving them space to express their true talents.
Once you are Leveraging your business by having systems in place you will continually get a return on your investment of your initial time and planning. The time it took you to administer the systems and train your people will hit a break even at some point and then will continue to pay you dividends for many years to come.
Caution – for you smaller business owners, don’t use the lack of time as an excuse for not implementing the proper systems. Ask yourself ‘’How much Stress, Time, Energy and Money has it cost me already by not having this system in place?” This question should usually get you to slow down long enough to realize the value of implementing it now.
Several areas of Leverage to consider for your business.
- People Leverage – is utilizing your people’s talents, skills, contacts, credibility, and resources. You can also leverage certain talent within your team to train your team.
- Technology Leverage – is fully utilizing the latest technology to increase your speed and efficiency. You can also leverage outside sources like Upwork or Fiverr to create anything while you sleep for a very low cost.
- Time Leverage – is managing your time more effectively. Making sure your team is managing their time effectively by truly understanding their vital functions within the organization.
- Assessment Leverage – Using assessments to position the right people in the right places, with the right plan.
- System Leverage – will move the business away from people dependency to system dependency. This will create the organization that you can one day sell (if that is your plan).
In conclusion, be committed to applying the power of leverage in all areas of your organization and you will continue to reap the benefits of getting more with less.