How Will You Measure Your Life?-Harvard Business Review 10/5/105:10PM regression analysis,I would have badly misspent my life.I apply the tools of econometrics a few times a year,but I apply my knowledge of the purpose of my life every day.It's the single most useful thing I've ever learned.I promise my students that if they take the time to figure out their life purpose,they'll look back on it as the most important thing they discovered at HBS.If they don't figure it out,they will just sail off without a rudder and get buffeted in the very rough seas of life.Clarity about their purpose will trump knowledge of activity-based costing,balanced scorecards,core competence,disruptive innovation,the four Ps,and the five forces. My purpose grew out of my religious faith,but faith isn't the only thing that gives people direction.For example,one of my former students decided that his purpose was to bring honesty and economic prosperity to his country and to raise children who were as capably committed to this cause,and to each other,as he was.His purpose is focused on family and others-as mine is. The choice and successful pursuit of a profession is but one tool for achieving your purpose.But without a purpose,life can become hollow. Allocate Your Resources Your decisions about allocating your personal time,energy,and talent ultimately shape your life's strategy. I have a bunch of"businesses"that compete for these resources:I'm trying to have a rewarding relationship with my wife,raise great kids,contribute to my community,succeed in my career,contribute to my church,and so on.And I have exactly the same problem that a corporation does.I have a limited amount of time and energy and talent.How much do I devote to each of these pursuits? Allocation choices can make your life turn out to be very different from what you intended.Sometimes that's good: Opportunities that you never planned for emerge.But if you misinvest your resources,the outcome can be bad.As I think about my former classmates who inadvertently invested for lives of hollow unhappiness,I can't help believing that their troubles relate right back to a short-term perspective. When people who have a high need for achievement-and that includes all Harvard Business School graduates-have an extra half hour of time or an extra ounce of energy,they'll unconsciously allocate it to activities that yield the most tangible accomplishments.And our careers provide the most concrete evidence that we're moving forward.You ship a product,finish a design,complete a presentation,close a sale,teach a class,publish a paper,get paid,get promoted.In contrast,investing time and energy in your relationship with your spouse and children typically doesn't offer that same immediate sense of achievement.Kids misbehave every day.It's really not until 20 years down the road that you can put your hands on your hips and say,"I raised a good son or a good daughter."You can neglect your relationship with your spouse,and on a day-to-day basis,it doesn't seem as if things are deteriorating.People who are driven to excel have this unconscious propensity to underinvest in their families and overinvest in their careers-even though intimate and loving relationships with their families are the most powerful and enduring source of happiness. If you study the root causes of business disasters,over and over you'll find this predisposition toward endeavors that offer immediate gratification.If you look at personal lives through that lens,you'll see the same stunning and sobering pattern: people allocating fewer and fewer resources to the things they would have once said mattered most. Create a Culture There's an important model in our class called the Tools of Cooperation,which basically says that being a visionary manager isn't all it's cracked up to be.It's one thing to see into the foggy future with acuity and chart the course corrections that the company must make.But it's quite another to persuade employees who might not see the changes ahead to line up and work cooperatively to take the company in that new direction.Knowing what tools to wield to elicit the needed cooperation is a critical managerial skill. The theory arrays these tools along two dimensions-the extent to which members of the organization agree on what they http://hbr.org/2010/07/how-will-you-measure-your-life/ar/pr Page 3 of 6How Will You Measure Your Life? - Harvard Business Review 10/5/10 5:10 PM http://hbr.org/2010/07/how-will-you-measure-your-life/ar/pr Page 3 of 6 regression analysis, I would have badly misspent my life. I apply the tools of econometrics a few times a year, but I apply my knowledge of the purpose of my life every day. Itʼs the single most useful thing Iʼve ever learned. I promise my students that if they take the time to figure out their life purpose, theyʼll look back on it as the most important thing they discovered at HBS. If they donʼt figure it out, they will just sail off without a rudder and get buffeted in the very rough seas of life. Clarity about their purpose will trump knowledge of activity-based costing, balanced scorecards, core competence, disruptive innovation, the four Ps, and the five forces. My purpose grew out of my religious faith, but faith isnʼt the only thing that gives people direction. For example, one of my former students decided that his purpose was to bring honesty and economic prosperity to his country and to raise children who were as capably committed to this cause, and to each other, as he was. His purpose is focused on family and others—as mine is. The choice and successful pursuit of a profession is but one tool for achieving your purpose. But without a purpose, life can become hollow. Allocate Your Resources Your decisions about allocating your personal time, energy, and talent ultimately shape your lifeʼs strategy. I have a bunch of “businesses” that compete for these resources: Iʼm trying to have a rewarding relationship with my wife, raise great kids, contribute to my community, succeed in my career, contribute to my church, and so on. And I have exactly the same problem that a corporation does. I have a limited amount of time and energy and talent. How much do I devote to each of these pursuits? Allocation choices can make your life turn out to be very different from what you intended. Sometimes thatʼs good: Opportunities that you never planned for emerge. But if you misinvest your resources, the outcome can be bad. As I think about my former classmates who inadvertently invested for lives of hollow unhappiness, I canʼt help believing that their troubles relate right back to a short-term perspective. When people who have a high need for achievement—and that includes all Harvard Business School graduates—have an extra half hour of time or an extra ounce of energy, theyʼll unconsciously allocate it to activities that yield the most tangible accomplishments. And our careers provide the most concrete evidence that weʼre moving forward. You ship a product, finish a design, complete a presentation, close a sale, teach a class, publish a paper, get paid, get promoted. In contrast, investing time and energy in your relationship with your spouse and children typically doesnʼt offer that same immediate sense of achievement. Kids misbehave every day. Itʼs really not until 20 years down the road that you can put your hands on your hips and say, “I raised a good son or a good daughter.” You can neglect your relationship with your spouse, and on a day-to-day basis, it doesnʼt seem as if things are deteriorating. People who are driven to excel have this unconscious propensity to underinvest in their families and overinvest in their careers—even though intimate and loving relationships with their families are the most powerful and enduring source of happiness. If you study the root causes of business disasters, over and over youʼll find this predisposition toward endeavors that offer immediate gratification. If you look at personal lives through that lens, youʼll see the same stunning and sobering pattern: people allocating fewer and fewer resources to the things they would have once said mattered most. Create a Culture Thereʼs an important model in our class called the Tools of Cooperation, which basically says that being a visionary manager isnʼt all itʼs cracked up to be. Itʼs one thing to see into the foggy future with acuity and chart the course corrections that the company must make. But itʼs quite another to persuade employees who might not see the changes ahead to line up and work cooperatively to take the company in that new direction. Knowing what tools to wield to elicit the needed cooperation is a critical managerial skill. The theory arrays these tools along two dimensions—the extent to which members of the organization agree on what they