Understanding Productivity through Time Investment

From: alexhormozi

Productivity is defined as the amount of money gained for the time invested [00:00:00]. A personal transformation from a $0networthatage23toover$100 million at age 31 was achieved simply by better investing time [00:00:06]. The focus is on achieving good Returns on time [00:00:18]. The core idea, inspired by Paul Graham’s blog post from 14 years ago, is that those who are the best investors of time are the ones who make the most money [01:05:07].

Two Types of Time Investment Schedules

There are two distinct types of schedules adopted by entrepreneurs and workers, and individuals often switch between these “hats” throughout their day or week [01:13:00].

The Manager Schedule

Managers invest their time in the smallest possible chunks, often with 20 or more chunks per day, ranging from 5 to 90 minutes [01:30:00]. For a manager, an empty time slot is considered a lost opportunity, time that did not yield a return on investment [01:43:00]. They treat time like currency, with the only cost being coordination with others’ calendars [01:51:00].

Managers engage in various tasks throughout the day, such as collecting and reporting data, persuading, leading, training, encouraging, and making decisions in one-on-one or group settings [02:17:00]. Their day typically begins with meeting preparation and ends with the last meeting, meaning the duration of their workday is directly proportional to their meeting schedule [02:32:00].

The primary objective for a manager is to utilize all their time chunks to maximize their time investment [02:55:00]. A fully booked day is considered a maximally invested and thus productive manager [03:00:00].

The Maker Schedule

The maker schedule is less commonly understood but is crucial for creators, entrepreneurs, and those who build “big things” [03:13:00]. This schedule is optimized for “deep work”—tasks that are not urgent but are incredibly important for long-term progress and business growth [03:37:00]. Examples include coding software, editing videos, or writing books [04:15:00].

Unlike managers, makers need few, large chunks of uninterrupted time [04:51:00]. A single meeting or interruption can disrupt a several-hour block, making it difficult to re-enter a state of flow [04:59:00]. This phenomenon, known as the Zeigarnik effect, means that open loops (like upcoming meetings) consume mental energy, sapping a maker’s ability to create [05:17:17].

For makers, the output of their work is the actual “stuff” they build, not decisions or coordination [05:41:00]. Makers work off meetings and on projects that require extended periods, sometimes weeks or months [05:53:00]. They often have a set start time but variable end times, working “open to goal” and allowing themselves to get lost in the work [06:06:00].

A maker’s typical day might consist of one to three four-to-six-hour chunks, often a morning and a post-lunch block [06:34:00]. For a maker, an empty time slot on their calendar is not a lost opportunity, but the opportunity to get a return [07:44:00]. An empty calendar is a maximally productive day for a maker [08:14:00].

The Conflict: Managers and Makers Interacting

The primary issue arises when managers and makers need to interact [08:48:00]. A manager who doesn’t understand how makers work can inadvertently destroy their team’s productivity [09:00:00]. Managers often assume makers can work “on demand” like they do, thinking a 30-minute meeting is insignificant, especially if a maker’s calendar appears empty [09:06:00].

A short meeting might cost a manager one of their 100+ daily work units, but for a maker, it can consume one of their only two daily time slots, potentially affecting both [09:28:00]. If a maker is falling behind, a manager’s solution might be to interrupt them more, creating a vicious cycle where check-ins prevent the very work they are monitoring [10:01:00].

This misunderstanding leads to both parties losing: the manager doesn’t get the maker’s output, and the maker cannot achieve high returns on their time [10:23:00]. Makers face a difficult choice: offend the manager by declining a meeting (risking relationships and future collaboration) or accept and destroy half their workday for potentially little yield [11:00:00]. This cycle can prevent businesses from growing and entrepreneurs from progressing [07:32:00].

A personal belief is that being “ruthless” with time, especially maker time, is the highest predictor of success [12:34:00]. Moving the ball forward daily during maker time is paramount, as 100% of major accomplishments occur during maker time, not manager time [13:21:21].

Solutions for Better Time Allocation

A three-pronged approach is necessary to address the conflict between maker and manager schedules, involving managers, makers, and the organization as a whole [15:30:00].

For Managers

1. Understand the Cost to Makers: Managers must recognize that scheduling a meeting costs a maker twice: first during coordination and then during the meeting itself [15:58:00]. A meeting costs a maker approximately 10 times more in terms of lost productivity chunks compared to a manager [16:29:00]. Meetings, especially ad-hoc ones, should only be scheduled if truly essential and if they cannot wait for a set communication cadence [16:42:00].
2. Value a Maker’s “No”: Managers should not take offense if a maker declines a meeting [17:00:00]. This “maker’s no” indicates they are prioritizing larger commitments to the company by focusing on meaningful work [17:10:00]. If a meeting is truly critical, the manager should frame it as such and allow the maker time to prepare [17:40:00].
3. Ask for Ideal Workdays: Managers should inquire about what an ideal, maximally productive day looks like for their team members and aim to accommodate those preferences [17:52:00]. For instance, a media team might bundle all meetings into specific times, leaving the rest of the days free for deep work [18:09:00]. This can also allow managers to reduce their own meeting load and focus on leading, directing, and training [18:40:00]. Much work doesn’t need to be done simultaneously; what matters is completion by a deadline [18:51:00].

For Makers

1. Communicate Your Work Style: Makers should proactively inform their managers and teammates about their work style and how they achieve productivity [19:10:00]. While some meetings are unavoidable, makers can adapt by switching to a manager schedule for that specific block, stacking as many ad-hoc meetings as possible into that interrupted time [19:45:00]. The goal is for the calendar to reflect the nature of the work, rather than identifying strictly as one type or the other [20:10:00].
2. Establish Standard Meeting Times: Makers should designate specific days or blocks, such as Monday and Thursday afternoons, as their accepted meeting times [20:30:00]. This allows them to push most meeting requests into these blocks, significantly increasing their returns on time [20:53:00]. It’s also wise to leave some empty slots within these designated meeting times for inevitable ad-hoc requests [21:06:00].
   • Early-Stage Entrepreneur (V1): In the early stages, makers might need to utilize nights, weekends, and early mornings for their deep work, as their time may not yet be protected [21:21:00]. This was crucial for building foundational assets and systems as a gym owner [22:04:00].
   • Intermediate Entrepreneur (V2): As time becomes more valuable, a 50/50 split might emerge, with the first half of the day dedicated to maker work and the second half for manager tasks [24:16:00]. Scheduling meetings “back to front” (from the end of the day backward) helps preserve large, uninterrupted morning blocks [23:03:00].
   • Advanced Entrepreneur (V3): The most optimized approach involves dedicating entire days to maker work (e.g., 2-4 days a week) and then stacking all meetings, introductions, and coordination on a single manager day [24:25:00]. This ensures that even on manager days, the individual is maximally productive in that specific mode [24:44:00].
3. Communicate Responsiveness: Inform others when you will be slow to respond, particularly during maker blocks [24:54:00]. People adapt well to clear expectations [25:00:00].
4. Actually Work: When granted the respect of protected maker time, makers must utilize it effectively [25:26:00]. Failing to do so can confirm managers’ suspicions that empty calendars equate to idleness [25:39:00]. Makers should also be self-aware; on days when creative energy is low, it might be beneficial to schedule meetings [28:34:00].

For Organizations

1. Implement Mandated Quiet Time: Organizations should consider mandating specific “quiet times” on the calendar where entire teams cannot message or meet [26:45:00]. This can be daily periods or full days (e.g., Wednesdays being a quiet day for editing teams) [26:57:00]. This applies to teams with makers like engineers, developers, copywriters, and editors [27:11:00].
   • Remote Work Considerations: In remote settings, where direct observation of work isn’t possible, mandated quiet times are even more critical [27:29:00]. Organizations must foster trust and measure output over constant check-ins, allowing longer periods of trust for project completion [28:18:00].
2. Relinquish Control and Extend Trust: As businesses grow, entrepreneurs must learn to relinquish control to gain freedom [32:51:00]. This involves extending trust with guard rails and measuring people on outputs [33:16:00]. Leaders should regularly audit meetings, questioning if they are necessary or if a process/person can replace them [33:37:00].
   • Quarterly reviews of recurring meetings to delete or combine them, and advising individuals if their attendance is not essential, are crucial [34:01:00]. A culture where employees feel empowered to leave meetings if they are not adding or gaining value returns time to the company [34:31:00].
   • Meetings have a significant monetary cost based on attendees’ salaries [34:42:00]. Organizations often spend significant amounts on unnecessary meetings, preventing higher returns on time [35:17:00].
3. Standardize Language and Educate: Spread this content to both makers and managers to establish a common language for describing this source of waste and preventing it [35:34:00]. Companies that implement a maker/manager schedule, where everyone understands how to achieve the highest returns on their time, will gain a competitive advantage through higher returns on human capital, increased output, and improved work quality [35:48:00]. Actively removing makers and unnecessary managers from meetings is key to this transformation [36:13:00].

Managers wearing a “manager hat” might have a schedule that is inverted compared to a leader like Alex Hormozi, who has four maker days and one manager day [14:11:00]. The key is understanding which style is best for a particular moment, as most individuals have elements of both [14:45:00]. The goal is to articulate this concept to empower makers and help managers understand the true cost of interruptions [36:20:00].

[30:09:00]

Alex Hormozi's Calendar Example

A personal calendar during a “short week” (following a holiday) shows three full maker days and one manager day.

• Maker Days (e.g., Wednesday, Thursday, Friday): These days are largely empty of external meetings, dedicated to deep work like recording videos. Internal “gym meetings” are personal appointments. These are designated “quiet days” organization-wide for makers.
• Manager Day (e.g., Tuesday): This day is densely packed with back-to-back meetings: team meetings, one-on-ones with leaders, executive meetings, book manager meetings, customer calls, and marketing meetings. The aim is to consolidate all coordination and decision-making here, constantly auditing if meetings are necessary or can be automated.