How to Create a Priority Management Process
Time management is the single most valuable skill for a business owner. When you stay focused on the larger goals and work more efficiently you can increase revenue, reduce costs, and grow your business. It helps speed decision making and gives you more control.
Let’s take a look at the value of time management:
- Look at your current schedule
- See where you can leverage/save time: look at your email time, length of meetings, commute time, etc. Try to find 4 hours you can spare in a week.
- Next, calculate your hourly rate. If you bill hourly, this is easy. If you’re project-based, look at the average project size and how long it takes to complete. Project size / number of hours to complete = average hourly rate (example: $250/hour)
- Calculate how much you can save in one year if you save 4 hours a week.
- If your hourly rate is $250 and you were able to clear up 4 more hours a week of billable time, you could make $50,000 more in a year.
What would you do with $50,000 more in revenue this year? Now let’s zoom out. If saving just four hours can result in that revenue shift, imagine what you can accomplish if you applied that to your entire year.
How to Prioritize High Impact Items
Time is the one thing we all have the same amount of. We all have the same 168 hours in a week. Priority management is about choosing how you’ll spend those hours.
How do you maximize the time? Start with where you want to be (goals) and work backward into smaller chunks. It’s essential to think about impact, importance, and urgency.
Creating a Priority Management Process:
- Identify long term goals – outline your top 3 year-end goals with crucial KPIs such as revenue, expenses, profits, etc.
- Identify your goals for the current month – Break your annual goals down into their monthly component. For example, if you have a goal of $1,200,000 in revenue for the year, you might have a monthly goal of $100,000.
- Identify your weekly goals – Break your monthly goal down into weekly components. For example, if your monthly goal was $100,000 and there were 4 weeks in a month your weekly goal might be $25,000.
- Determine how many hours you’re prepared to work this week
- List out all the tasks required to hit your weekly goals
- Identify the quadrant for every task using the following lettering system:
A. Urgent & Important
B. Not Urgent but Important
C. Urgent but Not Important
D. Not Urgent & Not Important
- Enter the time each task will take – don’t plan on it taking less than 0.25 of an hour.
- Identify an ideal day for the task
- Enter the name of the individual you can delegate or leverage on a task where appropriate
- Starting with your A priorities, schedule them in your calendar. Then your B’s next. Lastly, your C’s. If you have a D priority task – delete it!
At the end of the day. it’s not about massive change – if you can spend 10% of your work time focused on high impact items with a 40-hour workweek you’ll spend an extra 4 hours a week (200+ hours a year!) on high impact items.
Give it a shot. If you need help prioritizing your tasks list and creating your own block schedule, check out our Priority Management tool.