The $25,000 Plan

In the early 20th Century, Bethlehem Steel was the second largest steel producer in the United States and the world’s largest shipbuilder. Charles M. Schwab bought the company at the turn of the century and led it into unprecedented growth. By the 1910s the corporation was expanding rapidly, acquiring many other, smaller companies.

Schwab knew that rapid growth can kill efficiency, so to combat this problem he hired a consultant named Ivy Lee in 1918 to give advice on how Bethlehem Steel could continue to run smoothly. Lee came and observed the organization and looked through the data, then came back to Schwab asked to be given 15 minutes with each executive in the company.

Lee spent those 15 minutes explaining a simple organizational method to each executive. He told them to spend a little time at the end of each workday to write down the six most important things they wanted to get done the next day. He told them to put them in order, starting with the most important. As soon as they got to work the next day, they would be ready to start with that first thing and were to work on it until it was finished and then move on to the next until it was finished. If they didn’t finish all six things in the day, whatever was left would get bumped to the next day’s list. He told them to do this every day.

Schwab asked how much this sole and simple advice for Bethlehem Steel would cost. Lee told him to wait and see how it worked for three months and then pay him whatever he thought it was worth. Three months later Schwab called Ivy Lee back to his office and wrote him a $25,000 check. That is over $450,000 today for one simple plan that boosted the company’s productivity and efficiently more than anything else ever had. The Ivy Lee plan was taught to all managers and workers in the company.

It was just a to-do list. It worked.

This life and leadership strategy teaches us that making and executing a plan is the key to living and being effective. We all know it’s true, but we still don’t always take the time to do it, or we don’t stick with it.

Sometimes we don’t stick with it because the system we try to use gets more complex than we care to maintain. There are phone and computer apps that help us do this. Personally, I haven’t found them effective. I bullet journal instead, pen and paper to-do lists for each day of the week. The best method of planning out what you need to get done is the method that works and one you will stick with.

I plan out my work, family, social responsibilities every week. I usually find more time in every day than I need, because so much of it is used well. It has been priceless in my life.

In the early 20th Century, Bethlehem Steel was the second largest steel producer in the United States and the world’s largest shipbuilder. Charles M. Schwab bought the company at the turn of the century and led it into unprecedented growth. By the 1910s the corporation was expanding rapidly, acquiring many other, smaller companies.

Schwab knew that rapid growth can kill efficiency, so to combat this problem he hired a consultant named Ivy Lee in 1918 to give advice on how Bethlehem Steel could continue to run smoothly. Lee came and observed the organization and looked through the data, then came back to Schwab and asked to be given 15 minutes with each executive in the company.

Lee spent those 15 minutes explaining a simple organizational method to each executive. He told them to spend a little time at the end of each workday to write down the six most important things they wanted to get done the next day. He told them to put them in order, starting with the most important. As soon as they got to work the next day, they would be ready to start with that first thing and were to work on it until it was finished and then move on to the next until it was finished. If they didn’t finish all six things in the day, whatever was left would get bumped to the next day’s list. He told them to do this every day.

Schwab asked how much this sole and simple advice for Bethlehem Steel would cost. Lee told him to wait and see how it worked for three months and then pay him whatever he thought it was worth. Three months later Schwab called Ivy Lee back to his office and wrote him a $25,000 check. That is over $450,000 today for one simple plan that boosted the company’s productivity and efficiency more than anything else ever had. The Ivy Lee plan was taught to all managers and workers in the company.

It was just a to-do list. It worked.

This life and leadership strategy teaches us that making and executing a plan is the key to living and being effective. We all know it’s true, but we still don’t always take the time to do it, or we don’t stick with it.

Sometimes we don’t stick with it because the system we try to use gets more complex than we care to maintain. There are phone and computer apps that help us do this. Personally, I haven’t found them effective. I bullet journal instead, pen and paper to-do lists for each day of the week. The best method of planning out what you need to get done is the method that works and one you will stick with.

I plan out my work, family, social responsibilities every week. I usually find more time in every day than I need, because so much of it is used well. It has been priceless in my life.