James Clear, author of Atomic Habits, emphasized that focusing on the process rather than just outcomes leads to “success. He suggested a simple framework for process improvement:
1. Decide what you want to achieve.
2. Try different ways of achieving it until you find one that works for you.
3. Do more of what works. Do less of what doesn’t.
Clear distinguishes between goals (the results you want) and systems (the processes that lead to those results), arguing that sustainable success comes from building effective systems and habits, not just setting goals.
If you focus on the controllable inputs and the process to improving your business, in the long term, you get better results.
Say somebody came up to me, Jeff Bezos, and said, “Jeff, I want your job to be to drive up the Amazon stock price, and just manage that directly.”
Many companies actually try to do this. They go out and try to “sell” the stock. That’s a silly approach, that’s not sustainable.
It’s much better to say, “What are the inputs to a higher stock price?” OK, well, free cash flow and return on invested capital are inputs to a higher stock price. Let’s keep working backwards. What are the inputs to free cash flow? And you keep working backwards until you get to something that’s controllable.
A controllable input for free cash flow would be something like lower cost structure.
Then you back up from there and say, if we can improve our picking efficiency in our fulfillment centers and reduce defects — reducing defects at the root is one of the best ways to lower cost structure — that starts to be a job you would accept.
If you’re a reasonable person, you would say, “I have no idea how to drive up the stock price. I can’t manage that directly. It’s not a controllable input.” But I can make picking algorithms more efficient, and that will reduce cost structure.
And then you follow that chain all along the way.
The same holds true for your business. Want to increase sales?
Focus on controllable inputs: the number of leads generated, the number of cold calls made, the type and frequency of follow-ups. Turn the goal into a series of controllable, manageable inputs
(“Manageable” not in terms of easily attainable, but a task or process that can be actively and objectively managed.)
Clear’s approach is to focus on consistent, small improvements in your process, trusting that good outcomes will follow from good systems.
Results and achieving goals do matter. But if you optimize for the outcome and goal, you win one time. But, if you optimize for a process and inputs you can control that leads to great outcomes, you can win again and again.
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