Managerial leverage
In one sentence
A manager's job is to multiply the team's output, not to do all the work themselves.
The simple version
Andy Grove said a manager's output is the output of their team plus the teams they influence. So the best use of your time is high-leverage stuff: clear goals, good one-on-ones, unblocking people and making decisions quickly.
Why it matters
Founders often stay stuck doing everything. Thinking in leverage helps you grow from doer to leader.
How to do it
- 1List your activities and rate their leverage.
- 2Hold regular one-on-ones so problems surface early.
- 3Set clear goals and key results (OKRs).
- 4Delegate tasks along with the context to do them well.
- 5Cut or shorten low-value meetings.
Real-world example
A founder spends an hour training a new hire on sales calls. That hour unlocks hundreds of calls they'll never have to make themselves.
What the books say
“A manager's output = The output of his organization + The output of the neighboring organizations under his influence.”
“There's no recipe for really complicated, dynamic situations.”
First who, then what — get the right people on the bus before deciding where to drive it.
Common mistakes
- Measuring yourself by personal busyness.
- Delegating without explaining the 'why'.
- Skipping one-on-ones when things get busy.
Questions people ask
What are OKRs?
Objectives and Key Results: a goal (objective) plus a few measurable results that show you've achieved it. Popularised by Grove at Intel.
References
- [1]
- [2]
- [3]
More books on this in the library
Influence: The Psychology of Persuasion
Robert Cialdini's seminal work on the psychology of why people say yes, revealing six universal principles of influence that drive human behavior and decision-making.
Influence
"Influence" by Robert B. Cialdini is recommended by David Heinemeier Hansson (creator of Ruby on Rails and founder of Basecamp) for anyone in business. The book teaches how to sell and deal with customers by treating them as humans, focusing on the psychology of persuasion.
High Output Management
High Output Management teaches founders leadership lessons on maximizing output through OKRs, one-on-ones, and high-leverage activities for effective team building and organizational scaling. Key principles include managing like a production process, conducting performance reviews with absolute honesty, and optimizing meetings. Compared to The Making of a Manager, it provides a more rigorous, systems-oriented approach suited for ambitious startups.
The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers
The Hard Thing About Hard Things arms founders with raw leadership lessons on surviving crises, layoffs, and peacetime vs wartime CEO transitions for resilient team building. Key principles include taking care of people first, grudgingly giving ground, and managing the struggle without excuses. Vs High Output Management, it confronts emotional realities and no-easy-answers decisions over systematic leverage.
Switch: How to Change Things When Change Is Hard
A #1 New York Times bestseller with over one million copies sold, Chip and Dan Heath present a practical framework for creating change by understanding the psychological forces at play. Essential reading for founders leading organizational transformation and building company culture.
Same as Ever: A Guide to What Never Changes
Morgan Housel distills timeless human behaviors like greed, fear, and storytelling for founders to navigate uncertainty in strategy pivots and decision-making. Core lessons on risk unseen and narrative power over data; enduring psychology vs Porter's changeable industry structures.