The 4-Hour Workweek: Escape 9–5, Live Anywhere, and Join the New Rich - Expanded and Updated

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The 4-Hour Workweek: Escape 9–5, Live Anywhere, and Join the New Rich - Expanded and Updated Page 11

by Timothy Ferriss


  If you check mail and make bill payments five times a week, it might take 30 minutes per instance and you respond to a total of 20 letters in two and a half hours. If you do this once per week instead, it might take 60 minutes total and you still respond to a total of 20 letters. People do the former out of fear of emergencies. First, there are seldom real emergencies. Second, of the urgent communication you will receive, missing a deadline is usually reversible and otherwise costs a minimum to correct.

  There is an inescapable setup time for all tasks, large or minuscule in scale. It is often the same for one as it is for a hundred. There is a psychological switching of gears that can require up to 45 minutes to resume a major task that has been interrupted. More than a quarter of each 9–5 period (28%) is consumed by such interruptions.13

  This is true of all recurring tasks and is precisely why we have already decided to check e-mail and phone calls twice per day at specific predetermined times (between which we let them accumulate).

  From mid-2004 to 2007, I checked mail no more than once a week, often not for up to four weeks at a time. Nothing was irreparable, and nothing cost more than $300 to fix. This batching has saved me hundreds of hours of redundant work. How much is your time worth?

  Let’s use a hypothetical example:

  1. $20 per hour is how much you are paid or value your time. This would be the case, for example, if you are paid $40,000 per year and get two weeks of vacation per year ($40,000 divided by [40 hours per week x 50 = 2,000] = $20/hour). Estimate your hourly income by cutting the last three zeroes off of your annual income and halving the remaining number (e.g., $50,000/year p $25/hour.

  2. Estimate the amount of time you will save by grouping similar tasks together and batching them, and calculate how much you have earned by multiplying this hour number by your per-hour rate ($20 here):

  3. Test each of the above batching frequencies and determine how much problems cost to fix in each period. If the cost is less than the above dollar amounts, batch even further apart.

  For example, using our above math, if I check e-mail once per week and that results in an average loss of two sales per week, totaling $80 in lost profit, I will continue checking once per week because $200 (10 hours of time) minus $80 is still a $120 net gain, not to mention the enormous benefits of completing other main tasks in those 10 hours. If you calculate the financial and emotional benefit of completing just one main task (such as landing a major client or completing a life-changing trip), the value of batching is much more than the per-hour savings.

  If the problems cost more than hours saved, scale back to the next-less-frequent batch schedule. In this case, I would drop from once per week to twice per week (not daily) and attempt to fix the system so that I can return to once per week. Do not work harder when the solution is working smarter. I have batched both personal and business tasks further and further apart as I’ve realized just how few real problems come up. Some of my scheduled batches in 2007 were e-mail (Mondays 10:00 A.M.), phone (completely eliminated), laundry (every other Sunday at 10:00 P.M.), credit cards and bills (most are on automatic payment, but I check balances every second Monday after e-mail), strength training (every 4th day for 30 minutes), etc.

  Empowerment Failure: Rules and Readjustment

  The vision is really about empowering workers, giving them all the information about what’s going on so they can do a lot more than they’ve done in the past.

  —BILL GATES, cofounder of Microsoft, richest man in the world

  Empowerment failure refers to being unable to accomplish a task without first obtaining permission or information. It is often a case of being micromanaged or micromanaging someone else, both of which consume your time.

  For the employee, the goal is to have full access to necessary information and as much independent decision-making ability as possible. For the entrepreneur, the goal is to grant as much information and independent decision-making ability to employees or contractors as possible.

  Customer service is often the epitome of empowerment failure, and a personal example from BrainQUICKEN illustrates just how serious but easily solved the problem can be.

  In 2002, I had outsourced customer service for order tracking and returns but still handled product-related questions myself. The result? I received more than 200 e-mail per day, spending all hours between 9–5 responding to them, and the volume was growing at a rate of more than 10% per week! I had to cancel advertising and limit shipments, as additional customer service would have been the final nail in the coffin. It wasn’t a scalable model. Remember this word, as it will be important later. It wasn’t scalable because there was an information and decision bottleneck: me.

  The clincher? The bulk of the e-mail that landed in my inbox was not product-related at all but requests from the outsourced customer service reps seeking permission for different actions:

  The customer claims he didn’t receive the shipment. What should we do?

  The customer had a bottle held at customs. Can we reship to a U.S. address?

  The customer needs the product for a competition in two days. Can we ship overnight, and if so, how much should we charge?

  It was endless. Hundreds upon hundreds of different situations made it impractical to write a manual, and I didn’t have the time or experience to do so regardless.

  Fortunately, someone did have the experience: the outsourced reps themselves. I sent one single e-mail to all the supervisors that immediately turned 200 e-mail per day into fewer than 20 e-mail per week:

  Hi All,

  I would like to establish a new policy for my account that overrides all others.

  Keep the customer happy. If it is a problem that takes less than $100 to fix, use your judgment and fix it yourself.

  This is official written permission and a request to fix all problems that cost under $100 without contacting me. I am no longer your customer; my customers are your customer. Don’t ask me for permission. Do what you think is right, and we’ll make adjustments as we go along.

  Thank you,

  Tim

  Upon close analysis, it became clear that more than 90% of the issues that prompted e-mail could be resolved for less than $20. I reviewed the financial results of their independent decision-making on a weekly basis for four weeks, then a monthly basis, and then on a quarterly basis.

  It’s amazing how someone’s IQ seems to double as soon as you give them responsibility and indicate that you trust them. The first month cost perhaps $200 more than if I had been micromanaging. In the meantime, I saved more than 100 hours of my own time per month, customers received faster service, returns dropped to less than 3% (the industry average is 10–15%), and outsourcers spent less time on my account, all of which resulted in rapid growth, higher profit margins, and happier people on all sides.

  People are smarter than you think. Give them a chance to prove themselves.

  If you are a micromanaged employee, have a heart-to-heart with your boss and explain that you want to be more productive and interrupt him or her less. “I hate that I have to interrupt you so much and pull you away from more important things I know you have on your plate. I was doing some reading and had some thoughts on how I might be more productive. Do you have a second?”

  Before this conversation, develop a number of “rules” like the previous example that would allow you to work more autonomously with less approval-seeking. The boss can review the outcome of your decisions on a daily or weekly basis in the initial stages. Suggest a one-week trial and end with “I’d like to try it. Does that sound like something we could try for a week?” or my personal favorite, “Is that reasonable?” It’s hard for people to label things unreasonable.

  Realize that bosses are supervisors, not slave masters. Establish yourself as a consistent challenger of the status quo and most people will learn to avoid challenging you, particularly if it is in the interest of higher per-hour productivity.

  If you are a micromanaging entrepreneu
r, realize that even if you can do something better than the rest of the world, it doesn’t mean that’s what you should be doing if it’s part of the minutiae. Empower others to act without interrupting you.

  SET THE RULES in your favor: Limit access to your time, force people to define their requests before spending time with them, and batch routine menial tasks to prevent postponement of more important projects. Do not let people interrupt you. Find your focus and you’ll find your lifestyle.

  The bottom line is that you only have the rights you fight for.

  In the next section, Automation, we’ll see how the New Rich create management-free money and eliminate the largest remaining obstacle of all: themselves.

  Q&A: QUESTIONS AND ACTIONS

  People think it must be fun to be a super genius, but they don’t realize how hard it is to put up with all the idiots in the world.

  —CALVIN, from Calvin and Hobbes

  Blaming idiots for interruptions is like blaming clowns for scaring children—they can’t help it. It’s their nature. Then again, I had (who am I kidding—and have), on occasion, been known to create interruptions out of thin air. If you’re anything like me, that makes us both occasional idiots. Learn to recognize and fight the interruption impulse.

  This is infinitely easier when you have a set of rules, responses, and routines to follow. It is your job to prevent yourself and others from letting the unnecessary and unimportant prevent the start-to-finish completion of the important.

  This chapter differs from the previous in that the necessary actions, due to the inclusion of examples and templates, have been presented throughout from start to finish. This Q & A will thus be a summary rather than a repetition. The devil is in the details, so be sure to reread this chapter for the specifics.

  The 50,000-foot review is as follows:

  1. Create systems to limit your availability via e-mail and phone and deflect inappropriate contact.

  Get the autoresponse and voicemail script in place now, and master the various methods of evasion. Replace the habit of “How are you?” with “How can I help you?” Get specific and remember—no stories. Focus on immediate actions. Set and practice interruption-killing policies.

  Avoid meetings whenever possible:

  Use e-mail instead of face-to-face meetings to solve problems.

  Beg-off going (this can be accomplished through the Puppy Dog Close).

  If meetings are unavoidable, keep the following in mind:

  Go in with a clear set of objectives.

  Set an end time or leave early.

  2. Batch activities to limit setup cost and provide more time for dreamline milestones.

  What can I routinize by batching? That is, what tasks (whether laundry, groceries, mail, payments, or sales reporting, for example) can I allot to a specific time each day, week, month, quarter, or year so that I don’t squander time repeating them more often than is absolutely necessary?

  3. Set or request autonomous rules and guidelines with occasional review of results.

  Eliminate the decision bottleneck for all things that are nonfatal if misperformed. If an employee, believe in yourself enough to ask for more independence on a trial basis. Have practical “rules” prepared and ask the boss for the sale after surprising him or her with an impromptu presentation. Remember the Puppy Dog Close—make it a one-time trial and reversible.

  For the entrepreneur or manager, give others the chance to prove themselves. The likelihood of irreversible or expensive problems is minimal and the time savings are guaranteed. Remember, profit is only profitable to the extent that you can use it. For that you need time.

  TOOLS AND TRICKS

  Eliminating Paper Distractions, Capturing Everything

  Evernote (www.evernote.com)

  This is perhaps the most impressive tool I’ve found in the last year, introduced to me by some of the most productive technologists in the world. Evernote has eliminated more than 90% of the paper in my life and eliminated nearly all of the multiple tabs I used to leave open in web browsers, both of which distracted me to no end. It can clear out your entire office clutter in one to three hours.

  Evernote allows you to easily capture information from anywhere using whatever device is at hand, and everything is then searchable (read: findable) from anywhere. I use it to:

  Take photographs of everything I might want to remember or find later—business cards, handwritten notes, wine labels, receipts, whiteboard sessions, and more. Evernote identifies the text in all of these pictures automatically, so it’s all searchable(!), whether from an iPhone, your laptop, or the web. Just as one example, I can store and find the contact information from any business card in seconds (often using the built in iSight camera on Mac to capture it), rather than spending hours inputting it all into contacts or searching through e-mail for that lost phone number. It’s mind-numbing how much time this saves.

  Scan all agreements, paper articles, etc., that would otherwise sit in file folders or on my desk. I use the Mac Fujitsu ScanSnap miniscanner (http://bit.ly/scansnapmac), the best I’ve found, which scans all of it directly to Evernote in seconds with one button.

  Take snapshots of websites, capturing all text and links, so that I can read them offline when traveling or doing later research. Get rid of all those scattered bookmarks, favorites, and open tabs.

  Screening and Avoiding Unwanted Calls

  GrandCentral (www.grandcentral.com) and YouMail (www.youmail.com)

  In a world where your physical address will change more often than your cell phone number (and e-mail), it can be disastrous if your number becomes public or gets in the wrong hands. Enter GrandCentral, which will give you a number with the area code of your choosing that then forwards to your own phone(s). I now give a GrandCentral number to anyone besides family and close friends. Some of the benefits:

  Identify any incoming number as unwanted, and that caller will then hear a “number not in service” message when attempting to call you.

  Customize your voicemail message to individual callers (spouse, boss, colleague, client, etc.) and listen in on messages as they’re being left, so you can “pick up” if the message is worth the interruption. Call recording is also an option.

  Use an area code outside of your hometown to prevent people and companies from finding and misusing addresses you’d prefer to keep private.

  Establish do-not-disturb hours, when calls are routed directly to voicemail with no ring.

  Have voicemail sent to your cell phone as SMS (text messages).

  YouMail, another option, can also transcribe voicemails and send them to your phone as text messages. Getting calls while stuck in a time-wasting meeting? No problem: Respond to voicemails via SMS during the meeting so you’re not stuck returning calls afterward.

  One Shot, One Kill Scheduling Without E-mail Back-and-Forth

  Few things are as time-consuming as scheduling via e-mail. Person A: “How about Tues. at 3 P.M.?” Person B: “I can make it.” Person C: “I have a meeting. How about Thurs.?” Person D: “I’m on a con-call. How about 10 A.M. on Fri.?” Use these tools to make scheduling simple and fast instead of another part-time job.

  Doodle (www.doodle.com)

  The best free tool I’ve found for herding cats (multiple people) for scheduling without excessive e-mail. Create and poll in 30 seconds with the proposed options and forward a link to everyone invited. Check back a few hours later and you’ll have the best time for the most people.

  TimeDriver (www.timedriver.com)

  Let colleagues and clients self-schedule with you based on your availability, which is determined by integration with Outlook or Google Calendar. Embed a “schedule now” button in e-mail messages and you’ll never have to tell people when you can make a call or meeting. Let them see what’s open and choose.

  Choosing the Best E-mail Batching Times

  Xobni (www.xobni.com/special)

  Xobni—inbox spelled backwards—is a free program for puttin
g Outlook on steroids. It offers many features, but the most relevant to this chapter is its ability to identify “hotspots,” or periods of time when you receive the bulk of e-mail from your most important contacts. These “hotspots” are batching times that will enable you to keep critical contacts (clients, bosses, etc.) smiling even while you reduce checking e-mail to 1–3 times per day. It will also populate your contacts automatically by pulling phone numbers, addresses, etc., from separate e-mail buried in the inbox.

  E-mailing Without Entering the Black Hole of the Inbox

  Don’t enter the black hole of the inbox off hours because you’re afraid you’ll forget something. Use these services instead to keep focused, whether on completing a critical project or simply enjoying the weekend.

  Jott (www.jott.com)

  Capture thoughts, create to-do’s, and set reminders with a simple toll-free phone call. The service transcribes your message (15–30 seconds) and e-mails it to whomever you want, including yourself, or to your Google calendar for automatic scheduling. Jott also enables you to post voice message links to Twitter (www.twitter.com), Facebook (www.facebook.com), and other services that tend to consume hours if you visit the sites themselves.

  Copy talk (www.copytalk.com)

  Dictate any message up to four minutes and have the transcription e-mailed to you within hours. Excellent for brainstorming, and the accuracy is astounding.

 

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