Sunday, July 09, 2006

The Law of Priorities

I've been reading alot of principles from the book "The 21 irrefutable laws of leadership" by John Maxwell. This was one of the topics that impressed me alot. Allow me to share some thoughts and quotes.

"Leaders understand that activity is not necessarily accomplishment"

This statement hit me like a hard brick. I always gave myself a pat on the back to encourage myself for doing many things at one time. This is made even worse by the fact that I'm a choleric. Howver, I do admit that the quote above bears merit. I can be doing so much, but does the things that I do really matter? Not everything that demands for my attention is important, even though they are urgent.

I believe that every task falls into 4 categories:

Urgent and important
Urgent and unimportant
Not Urgent and important
Not Urgent and unimportant

The challenge for myself is whether I can differentiate them at all times. Everthing single thing should be viewed from the 4 categories and dealt with accordingly. Therefore, the appropiate amount of time should also be allocated according to its severity. A major question arises: Are we spending enough time on the things that really matter?

A fine example of an effective leader is displayed by Jack Welch, CEO of General Electric. When he assumed leadership in 1981, the company stock traded at $4/share & was worth $12 billion. It was a HUGE and diverse company that included 350 strategic businesses. Jack began a total revolution and changed the entire profile of the company. He simply asked whether their businesses and products could be No.1 or No.2? Of the 348 businesses or product lines that could not, he closed some and divested others. He used the money earned to reinvest in the ones that remained and further strengthened them with acquisitions. He focused on a few supporting operations and 14 world class businesses, all well positioned for the 90's, either being the 1st or 2nd in the world market in which it participates.

Since he took over, GE's stock experienced a 2:1 split 4 times. And it traded more than $80/share since the writing of the book. It also became one of the most valuable company in the world with a market capitalisation of more than $250 billion.

What made GE one of the best companies in the world? Jack knew that it was always important to align people to what really matters and the end of the day. Thus this brought tremendous success.

My question for you today is:
What are we going to focus on the few things that will bring us the highest reward? If not, we might just be like a headless chicken, running around with no aim.