Leverage

‘Leverage’ can be a less harsh way of saying ‘exploit’ – which is maybe part of the reason we use it – but it is true that we all have levers in our daily lives that – perhaps – are not used as effectively as they should be. Levers are a concept from physics where an input force is used to provide a greater output. Leveraging then became a clever Wall Street word that suggested a pathway to financial freedom – wherever possible – achieved with other people’s money so that the risk on your finances was as controlled as possible. In our personal lives, though, doing more with less should be a ‘no brainer’ – many of us are over-worked, over-stretched and under-rested – so how can we reach our full potential sustainably, efficiently and productively? Leveraging in your personal life requires understanding and acknowledging your personal strengths and weaknesses – which is not easy. But being aware of the skills you have that need to be utilised, improved or exercised is a proven path towards maximising achievement in every aspect of your life. Leveraging those skills will:

Increase productivity: exploring, understanding and acknowledging your advantages is like dipping your feet in the water before you dive in – it gives you a better understanding of what’s coming. Are you about to plunge into Arctic freshwater lakes or is it more of a gentle Pacific wave lapping on a Maldivian atoll? What do you have – time, money, connections - that is in short supply? How can you use those hard-won, scarce resources to be more efficient, achieve your goals more quickly, and be more productive?

Pave your way: Just because leveraging as a term was originally used in finance doesn’t mean that it has to only be about money. But it can be about money. Equally, it can be about strategy. Leveraging your resources might mean that you build wealth in a sustainable, organic way at little risk by strategically approaching issues in a way that minimises the risk of failure while significantly increasing the chances of success – and the ensuing personal glory that results from that success. Leveraging can be a little like chess – move the right piece at the right time to the right place on the board and you get that much closer to checkmate. Move the right piece at the right time to the wrong place and your king might be the one that gets toppled!

Grow: Understanding your objectives and the tools you have and leveraging your resources means saving time, effort and other resources (including money) which most efficiently minimises your opportunity costs. This could mean using LinkedIn to connect with a key decision-maker at a client that you have been unable to connect with otherwise. These opportunities could help grow your business and revolving your goals to meet your available means makes it more likely that you will achieve your objectives in a sustainable, ethical way.

According to Wikipedia, the ancient Egyptians used levers to build the pyramids. Archimedes, the Greek mathematician, said: “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.” While you may – today at least - not want to move the world, there is no doubt that leveraging our resources has an important role to play in our personal, emotional and business success.