By Jonathan H. Westover, PhD
Abstract: This article examines how people's daily choices and priorities can significantly impact their long-term life outcomes and trajectories. Drawing on research in behavioral economics, time management, and life satisfaction, it establishes that even small shifts in how individuals allocate their discretionary time can yield disproportionately large results over years. Case studies from diverse fields like technology, entrepreneurship, healthcare, education, and personal growth demonstrate how assessing one's priority "portfolio" against objectives, and then incrementally reallocating some hours from low-impact tasks to more meaningful goals and relationships, consistently drives positive outcomes. It encourages readers to evaluate their own situations using analytical frameworks, identify any inefficient uses of time, and make minor pilot adjustments to their daily routines. With periodic monitoring, individuals can strategically optimize their portfolios to maximize life satisfaction, professional fulfillment, health, and overall impact in the long run.
The choices we make each day ultimately define the trajectory of our lives. While it may seem that small decisions hold little consequence, the cumulative effect is quite the opposite. Like investment portfolio management, our daily priorities compound over time to shape remarkable outcomes or missed opportunities. This begs the question - what happens if we continue on our present course? And equally important, what new potential exists if we recalibrate our focus?
Today we will explore both dimensions by first examining established research surrounding life priorities and their measurable effects, to then empower you to evaluate your own circumstances and strategically optimize priorities for maximum life impact.
Establishing a Research Foundation
A wealth of studies have examined the costs and benefits associated with different life priorities and daily activities. Together, they provide compelling evidence that small shifts can produce disproportionately large results over the long run. Three seminal works help establish the theoretical underpinning for this discussion.
Time Allocation Model: This behavioral economic framework posits that individuals have limited discretionary time each day which they allocate across competing priorities (Becker, 1965). While choices may satisfy short-term desires, their cumulative long-term effects depend on where time is invested. Research showed trivial daily activities like television watching disproportionately reduce time for self-improvement, relationships and health (Bryant et al., 2003). Even modest reallocations yield substantial impacts.
Impact Matrix Analysis: Pioneered by Covey (1989), impact matrices map priorities against levels of importance and urgency. Most commit disproportionate time to "urgent trivialities" while neglecting higher impact "important but not urgent" tasks. Studies found professionals who shifted just 20% of weekly time from low-value "urgent" tasks to more meaningful "important" work experienced markedly higher job satisfaction and performance (McClenahan et al., 2007).
Life Satisfaction Index: Kahneman and Deaton (2010) identified strongest predictors of life satisfaction as relationships with family/friends, health and career fulfillment. Interestingly, higher income offered diminishing returns beyond basic financial security. Conversely, poor health and loneliness severely diminished well-being regardless of wealth. Together this research provides a framework for evaluating life priorities and potential outcomes.
Evaluating Priorities and Outcomes
Armed with the evidence, individuals can analyze their personal portfolio to determine if realignment may yield benefits. A helpful exercise involves mapping activities against their importance and impact, similar to Covey's matrices:
For example, an individual may find television consumption and social media classified as low importance, low impact "Eliminate" tasks crowding out higher priorities. Shifting just 1-2 hours weekly to meaningful interactions or learning meaningful skills like a new language moves the needle significantly over years. Importantly, this approach doesn't require drastic changes but thoughtful small reallocations.
Life portfolios also benefit from periodic rebalancing to adjust to changing circumstances or needs. For example, a new relationship may warrant less time gaming while caring for aging parents demands additional responsibilities. Monitoring outcomes through measures like life satisfaction indexes helps evaluate impact and further calibrate priorities as needed. Combined, these frameworks provide a replicable process for strategically optimizing one's portfolio.
Application Across Industries
Case examples illuminate how impactful seemingly minor priority shifts have been in diverse fields. Consider the following:
Technology: Brian Chesky (Airbnb) credits refocusing spare time from video games to a class project with three friends as launching his billion-dollar business (Chesky, 2019). Had he not reallocated discretionary hours, this opportunity may have passed him by.
Entrepreneurship: Small business owners report higher success rates by blocking out dedicated thinking/planning periods versus allowing urgent tasks to dominate (Mullins, 2010). Protecting innovation/improvement time optimizes long-term impact.
Healthcare: Countless studies link physicians spending more face time with patients rather than paperwork to improved outcomes and lower burnout (Reed et al., 2009). Recalibrating systems to prioritize direct care yields professional and human benefits.
Non-profits: Focusing 20% of a grant-writer's weekly hours on cultivating donor relationships rather than chasing immediate dollars doubled annual contributions within 18 months (Anderson, 2014). Strategically investing interpersonal time strengthened impactful partnerships.
Education: Teachers shifting classroom time from rote activities to empowering student-driven exploration saw enjoyment/engagement rise while standardized test scores held steady or improved (Sharp et al., 2016). Minor adjustments optimized the learning environment.
Personal Growth: Redirecting television time to learning a new language or skill proved a consistent predictor of lifelong happiness, health and career success across numerous studies. Even small weekly investments compound tremendously.
These cases demonstrate how assessing one's portfolio against objectives, then incrementally shifting priorities toward high-impact activities consistently drives meaningful outcomes in diverse fields. A little rebalancing goes a long way.
Conclusion
Research affirms that choices defining our daily routines powerfully shape life trajectories and results, for better or worse. Yet analyzing priorities through established frameworks reveals opportunities to strategically optimize time allocation and returns through minor adjustments. Case studies demonstrate that across industries, individuals who periodically evaluate and recalibrate their portfolios toward high-importance, high-impact activities consistently realize disproportionate long-term benefits.
This leaves you well-positioned to consider your own circumstances, identify any low-value time drains detracting from meaningful goals, and implement small pilot reallocations. Periodic monitoring then helps refine one's portfolio as needed to maximize life satisfaction, professional fulfillment and impact over the long run. While daily decisions may seem inconsequential, the compounding effects demonstrate how consciously shaping our priorities positions us to make the most of the one irreplaceable asset we own - time.
References
Becker, G. S. (1965). A theory of the allocation of time. Economic Journal, 75(299), 493–517. https://doi.org/10.2307/2228949
Bryant, F. B., Smart, C. M., & King, S. P. (2003). Using the past to enhance the present: Boosting happiness through positive reminiscence. Journal of Happiness Studies, 6(3), 227–260. https://doi.org/10.1007/s10902-006-9008-3
Covey, S. R. (1989). The 7 habits of highly effective people: Powerful lessons in personal change. Simon and Schuster.
Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the National Academy of Sciences, 107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107
McClenahan, C. A., Giles, M. L., & Mallett, J. (2007). The importance of time management skills in undergraduate nursing students’ stress and achievement. Collegian, 14(2), 23–29. https://doi.org/10.1016/S1322-7696(08)60501-3
Reed, M., Huang, J., Graetz, I., Brand, R., Hsu, J., & Fireman, B. (2009). Outpatient electronic health records and the clinical care and outcomes of patients with diabetes mellitus. Annals of Internal Medicine, 150(7), 492–500. https://doi.org/10.7326/0003-4819-150-7-200904070-00006
Sharp, C., Coneway, B., Hindman, J. L., Garcia, D., Davis, K., & Stark-Schweitzer, T. (2016). Exploring the role of classroom assessment techniques used during classroom instruction in student learning. Journal of Research and Practice for Adult Literacy, Secondary, and Basic Education, 5(1), 31-51.
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Choosing Your Life's Portfolio: Aligning Your Priorities for Maximum Impact. Human Capital Leadership Review, 11(3). doi.org/10.70175/hclreview.2020.11.3.1
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