Business Management & the Power of Scarcity – Episode #75

by Richard Wilson on July 29, 2011

The following video is borrowed from our platform and was originally recorded for our business management training program.  Scarcity is a psychological principle that can be incredibly effective when used as a motivating tool.  In this video, I explain how you can use this psychological principle to motivate your team, make sure that people respect your time and run your business more effectively.

Video Transcript/Summary: The strategies and tips provided within this video module include:

  1. Scarcity is basically the idea that if you have two business managers and one is always available, never busy and always willing to devote all of his time to whatever comes up and there is another manager whose time is very scarce and important, then the latter manager is more important, has more work going on and his time is very important.
  2. This psychological principle can be an effective motivating tool and when you make sure that your time is seen as scarce, you will find that it improves your business management.
  3. A way that you can use this is to make sure that when you are working with your team you use time line-based bonuses.  For example, you can tell your employee: “If you get this task done this week, you can have half a day off.”  This makes that bonus more scarce because there is a time line for finishing it.
  4. Another technique is to become more in-demand.  If you do this, people will respect your time more and you will extract more value from your meetings and interactions.
  5. The more that you leverage this scarcity principle, the more you will be perceived as an in-demand authority. 

If you are recognized as an in-demand person with scarce time, your peers, superiors and others will grow to respect your time and abilities. 

Thanks for joining us, and I will see you again soon,

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