Compounding time

recent post from Tim Ferris got me thinking about the power of compounding time. Our friend Albert Einstein reminds us how important compounding interest is to long-term investing.

“The most powerful force in the universe is compound interest.” – Albert Einstein

It made me think that the concept of compounding should apply to execution as well. The speed with which you get things done should compound on itself.

Think about it, if you get Action A done one week faster than normal, and Action B done one week faster, you just increased your organization’s capacity to get things done by two weeks. Not only do you get results faster, these results build on top of each other. In other words, your results compound.

Investopedia defines compounding as “the process of generating earnings on an asset’s reinvested earnings.” In business, the results of good execution are inherently reinvested in your business. By taking action quickly to improve results, you give yourself the ability to improve those results even more in the future.

This is why companies that act quickly outperform their peers. The good news is that how quickly you act is completely in your control. Make it happen.

Advertisements

Post a Comment

%d bloggers like this: