“Leverage is about working smarter, not harder. It’s finding the smallest effort that creates the biggest results.”
Dropbox had a tiny team, limited funds, and no way to compete head-on with its better-resourced rivals. Instead of trying to do everything, co-founders Drew Houston and Arash Ferdowsi focused on a single high-leverage action: a product demo video.
The video wasn’t polished, but it was laser-focused. It showcased Dropbox’s value with clarity and humor, resonating deeply with potential users. Overnight, it drove 70,000 signups, launching Dropbox from obscurity to exponential growth.
This story highlights a critical principle: leverage is the art of doing more with less. High-leverage actions generate outsized impact relative to the resources invested.
The Leverage Equation
Leverage comes from identifying small inputs that create disproportionate outputs. Whether scaling a company, managing a project, or solving complex challenges, leverage is about focusing your energy where it matters most.
The Leverage Equation in 3 Steps
1. Focus on Multipliers
Identify actions, systems, or decisions that produce exponential outcomes.
Examples:
• Automate repetitive processes to free up resources.
• Build strategic partnerships instead of chasing one-off deals.
• Focus on high-value customer segments to maximize ROI.
2. Apply the 80/20 Principle
Focus on the 20% of activities that drive 80% of your results. Ruthlessly eliminate or deprioritize the rest.
Example: A marketing team might identify that a handful of high-performing campaigns drive most of their revenue. Doubling down on those campaigns creates leverage.
3. Maximize Force Amplifiers
• Technology: Use tools like CRMs, AI, or automation to scale work with minimal input.
• Talent: Invest in people who can execute with creativity and efficiency, multiplying the impact of initiatives.
• Systems: Build workflows that reduce decision fatigue and enable consistent results.
Actionable Steps to Leverage Leverage
1. Conduct a Leverage Audit
Evaluate how you’re currently spending your time and resources to uncover leverage opportunities.
Key Questions:
• What’s consuming most of my resources?
• Which activities directly align with my most important goals?
• What processes, tools, or partnerships could amplify my impact?
Quick Exercise:
Create a Leverage Matrix:
• Categorize tasks by effort (low/high) and impact (low/high).
• Prioritize items in the low-effort, high-impact quadrant and delegate or eliminate the rest.
2. Experiment with Small Bets
High-leverage actions often emerge through experimentation. Start small to test and learn what works.
Examples:
• Marketing: Test a single high-impact message with a new audience.
• Sales: Focus on converting a small group of high-value prospects.
• Product: Release a beta feature to gauge its value before full commitment.
Pro Tip: Measure the results of each experiment, and double down on those with the most leverage.
3. Leverage Time with Systems Thinking
Create systems that compound results over time.
Examples:
• Automate onboarding workflows for employees or customers to save time and improve consistency.
• Standardize team processes to reduce duplication of effort.
• Build templates or playbooks for recurring tasks like email campaigns, project proposals, or hiring.
Actionable Tip: Tools like Zapier, HubSpot, and Trello can help automate repetitive tasks and streamline collaboration.
Framework: Applying Leverage in Action
Step 1: Identify High-Leverage Opportunities
Pinpoint tasks, systems, or decisions that create outsized results.
Step 2: Prioritize Ruthlessly
Apply the 80/20 rule to focus on high-impact activities.
Step 3: Build for Scalability
Invest in tools, people, and workflows that allow efforts to compound over time.
Step 4: Test and Iterate
Experiment with small bets, measure their impact and refine your approach.
Step 5: Systematize the Wins
Turn successful high-leverage activities into repeatable processes or scalable systems.
What high-leverage action can you take today that will create exponential returns tomorrow?
Books
• High Output Management by Andrew Grove (on multiplying impact through systems).
• The Lean Startup by Eric Ries (on leveraging small bets for big impact).
• Essentialism by Greg McKeown (focusing only on what matters most).
Tools
• Zapier: Automate workflows across tools and apps.
• Airtable: Manage high-impact projects with clarity and flexibility.
• Miro: Visualize processes and identify leverage opportunities.
By focusing on small, incremental improvements (Kaizen), Toyota built one of the most efficient production systems in history—proving the power of compounding small wins.
Leverage isn’t about doing more; it’s about doing what matters most. By identifying high-impact actions, building scalable systems, and focusing your resources where they create the biggest returns, you can transcend the limits of time, money, and effort.
What’s your go-to framework for finding leverage in your business or projects? Share your insights, and let’s refine these ideas together to multiply the impact of this conversation.