What is CEO Time?
What is CEO Time?
It's important, critical, evasive. It's all we have, what we squander. For many of us, it could be triple the value of what it is now.
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 much 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!"
Yeah, right! And how are you really going to grow your business?
Entrepreneurs use me as a business coach, to find out where they can save money, make money, increase efficiency. Here's a very short sommary of what I've found.
Let's suppose that the value of CEO work to a company is $300 an hour, you could hire a manager for $50 an hour, and an employee for $15 an hour. One CEO spends 10% of his time as a CEO, 405 of his time as a manager (telling other people what to do and when to do it), and 50'% of his time as the chief employee - what Michael Gerber calls "doin' it, doin' it, doin' it!"
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% 450 200
Employee work 50% 5 15 75
Total100% 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
Most all of us fail to delegate. Do you? And is it costing you money?
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.
The good news: Once you understand, you can create change, and perhaps triple your value to your own business.
You can do this yourself, and/or you can get a little help. The call is free: 516 944-6454 or email to email@example.com. Please put "CEO Time" on the subject line.