MGMT Minute: How To Accurately Value Your Time For Maximum Impact

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I got a text from a CEO last night:

"I'm not valuing my time well. How should I think about it? Any ideas?"

I immediately thought about this tweet from Naval:

For some people, this anchor alone is enough to reframe their negotiation with themselves and transform behavior.

And if that's you, stop reading and do it.

Others, however, dismiss this as too theoretical. They say it ignores the reality of their business. Or they don't have the risk appetite to shoot this high. Or they're an employee who doesn't control their time.

But this isn’t about controlling your calendar.
It’s about valuing your time and acting accordingly.

But if I ask these same people for their hourly rate, they have no idea. And without this benchmark, how can they answer:

Am I using my time well?

They can't.

So here are a few practical ways to calculate it:

For Managers and Leaders:

Opportunity Cost Rate

Calculate the hourly value of your high-impact, high-joy work. Use this benchmark when considering new commitments, not your salary.

Value-Based Rate

Forget time spent. What's the value you create in your best moments? Back into an hourly rate from there. It's usually higher than you think.

Next Level Rate

Want that promotion? Price your time at the level above you. It forces decisions that align with where you're headed, not where you stand.

For Entrepreneurs:

Walk-Away Rate

What's the minimum project size that excites you? Divide by expected hours. Now you have your floor rate for new opportunities.

Surge Pricing Rate

Simple math for services: Over 80% booked = raise rates. Under 80% = examine pricing or positioning. The market will tell you your current value.

Energy Premium

Some work drains you. Some work energizes you. Put a premium on the draining work to compensate you for the excess energy it demands.

Remember, our goal as leaders is to maximize the impact of our team.

And that means combining people, processes, and technology into a system that creates maximum leverage to achieve meaningful goals.

And leverage starts with knowing your number.

What's yours?

Lead on,
Dave

PS - We only preach what we practice. That's why we're upgrading the MGMT Accelerator to include AI in every module. Same foundational leadership concepts, supercharged with AI.

As leaders are asked to do more with less, we're making it possible.