Using Google’s Approach to Investment

If you feel like you don’t know where to apply your time and energy, there is a solution used by leading companies to decide what to do.

This approach is known as the investment strategy adopted by Google, and can be implemented by anyone.

Today, we’ll break down the importance of spending energy on the right things, the strategy that will help us get this approach right, as well as the benefits of adopting this for yourself.

🔋Spending Energy Wisely

When we are uncertain of the way forward, the worst thing that we can do is to start working without a clear plan or framework.

At times, I have had new ideas and feelings that confuse my path forward. It would not be uncommon for that project to run for a series of time, before a pitfall shows up, and the project has to be sacrificed.

The problem here is not the desire or willingness to try something new, but the amount of energy we allocate to projects, which may impact our overall strategy.

♟️The Strategy

When I read Laszlo Bock’s Work Rules!, I learnt about Google’s investment strategy, which helped me reshape my working strategies.

The strategy which stood out to me is known simply as the 70/20/10 rule.

This stands for:

• 70% of time spent on core products/activities
• 20% of time spent on items just outside of core products/activities
• 10% of time spent on items unrelated to existing core products/activities

Firstly, this takes an understanding of what you would view as your ‘core activities’. If you aren’t sure of this, then your first step should be establishing exactly what it is that you will be working on for 70% of your time.

The beauty of this structure is that it can be applied in different ways. At times, I have considered my ‘core activities’ as my main job role, so the 10% is allocated to time spent on other projects outside of that. At other times, I have applied this to my own business as a framework for where we are focusing.

😊The Benefits

The major benefit of this strategy is to provide a framework to clarify your thinking.

When you have this system in place, it becomes harder to have a new idea and find yourself sacrificing your ‘core activities’ in favour of the inspiration you have had. It asks you to start with 10% of your time, and fully develop the idea, so that over time it can become part of your core range.

Also, even when your core activities are successful, it is important to continue exploring new opportunities on the edge and outside of your core.

However, if you do find inspiration for the next idea that could transform what you consider to be your core work, then at the very least, this system will challenge you to think clearly about your decisions.

💭Closing Thoughts

The 70/20/10 helped me to find the right balance between existing projects and new inspiration.

Whether you are looking to adopt this strategy or another, having a system in place helps guide your projects and attention.

If you are interested in the 70/20/10 rule, or you’ve used similar strategies in your life, I’d love to hear from you. So please drop me a message.

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