In order to fully understand the results achieved you need to assess the costs. In this module, you will learn how to get your team to take action towards the desired outcome by using leverage and you will understand what it will cost if you don’t meet the desired outcome.
When to use
To help reach the desired outcome, you should always do a cost assessment to understand what is at risk if you don’t meet the outcome. You should also use leverage to motivate your team to meet the desired results.
In order to drive that action, we need to get leverage on the team.
Leverage is that one piece that pushes you over the edge. Leverage makes us take that action. You want to make sure that you get enough leverage that there is a consequence if you don’t get the desired outcome or enough leverage that the reward if you do get the desired outcome.
Generally, you start with a pain point. If there is a pain point, that gets people into movement and gets them to change their behaviour.
To understand your leverage you must do a cost assessment. What will it cost if the desired outcome is not achieved? There are several different factors to take into account.
- Time - What will it cost you in time? If you are working on a project and that project doesn’t get completed on time how much time are you going to lose? Are you going to lose the last 6 or 12 months in time that you have worked on the project?
- Money - What is it going to cost you in money? Money is a great leverage piece to motivate your team. If we don’t get this done, we will lose X amount of money. Example: When GoDaddy first came out, they put all the investors’ money into a Super Bowl ad and that was the leverage. If that ad didn’t work out, they would have lost a ton of money.
- Market Share - What is it going to cost you in market share? Are you going to go from the #1 company down to #10? How many clients are you going to lose if you are not successful?
You need to share your cost assessment with your team so everyone can connect to the leverage.
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