I'm Building a Scoreboard to Track Leverage... Not Just Revenue

This week’s edition of The Leader’s Leverage takes a deeper look at how businesses can break free from traditional productivity metrics and adopt a more impactful approach through the T.A.P. Score framework. We explore how focusing on Time, Attention, and Profit can help leaders create lasting value instead of just staying busy. Additionally, we highlight the role of AI in transforming industries, from virtual influencers in China to innovative tools that small businesses can leverage to boost customer engagement and improve operations. Whether you’re looking to refine your strategies, stay ahead of market trends, or embrace new technologies, this issue offers valuable insights to help you grow and thrive in today’s fast-paced business landscape.

Today’s issue:

• Why the “productivity theater” of traditional metrics is holding you back

• How tracking Time, Attention, and Profit transforms busy work into lasting influence

• Real-world insights on LLM conversion advantages and market trends that can power your strategy

AI Leverage

This week’s article delves into the concept of moving beyond traditional productivity metrics and embracing a new framework called the T.A.P. Score- Time, Attention, and Profit. The author emphasizes the need to track leverage-oriented indicators that foster sustainable growth, rather than merely reflecting on past activities. This shift enables leaders to discern between being busy and creating lasting value.

Key Points:

• Traditional productivity metrics often lead to "productivity theater," where actions feel busy but fail to build lasting results; a new approach is necessary.

• The T.A.P. Score captures leading indicators of leverage, focusing on Time (protected for deeper work), Attention (resonance with the right audience), and Profit (compounding value through efficient systems).

• Protecting dedicated time for strategic tasks enhances both Attention and Profit scores, leading to greater overall effectiveness and less busy work. 

• High-impact weeks demonstrate that prioritizing system creation over task completion leads to reduced effort in the long run, enabling more impactful contributions and sustainable growth.
   
  

Key Takeaway: Shifting the focus from traditional productivity to the T.A.P. Score framework allows leaders to create compound value, establish scalable systems, and enhance their overall effectiveness. By prioritizing leverage, executives can foster an environment where meaningful work thrives, steering clear of the burnout associated with surface-level busyness.

AI Copilots

🤖 PROFIT/PROGRESS Theme Prompt

Purpose 

• Objective: Analyze customer feedback to develop new service offerings that cater to market demand.

• SMB Relevance: Feedback is essential for SMBs to adapt and grow their services in a competitive environment.

• Timeliness/Context: Following customer satisfaction surveys or a recent product launch.

Core Functionality 

• Copilot Actions: Collect, analyze, and synthesize customer feedback into actionable insights.

• Key Capabilities to Leverage: Sentiment analysis, data visualization, and report generation.

Interaction Style

• Copilot Persona/Tone: Analytical and supportive, guiding users through insights extraction.

• Guidance Level: Detailed, providing both high-level summaries and deep-dive options for specific data sets.

Typical User Inputs 

• Information Required: Customer feedback data, service categories, and any relevant benchmarks or goals.

• Format of Input: Data files or URLs to feedback platforms and survey results.

Expected Outputs

• Deliverables: A report outlining key findings, recommendations for new services, and potential impact metrics.

• Format/Structure of Output: A structured PowerPoint or PDF report with visuals and key takeaways.

• Success Criteria: Increased customer satisfaction, successful launch of new offerings, and boosted revenue.

AI News

➔ Featured Story

🤖 Study Highlights LLM Conversion Rate Advantage

A recent study shows large language models (LLMs) offer conversion rates nine times better than traditional search traffic, enhancing customer engagement for small and medium-sized businesses.

Key Points:

• LLMs like ChatGPT outperform conventional search traffic in conversion rates by a factor of nine.

• Businesses using LLMs see significant improvements in engagement metrics compared to traditional methods.

• The findings encourage SMBs to adapt their digital marketing strategies to incorporate LLM technology.

• Leveraging LLMs can provide a competitive edge in attracting and retaining customers.
  
  

Key Takeaway: Meta's investment positions it as a leader in the AI race, potentially transforming various sectors and enhancing productivity for small and medium-sized businesses, while intensifying competition among tech giants pursuing AI advancement.

➔ Other Notable AI News

• Job Cuts Coming at More Than 170 US Companies in June
  The report of significant layoffs highlights economic challenges. Understanding these trends is essential for SMBs planning their workforce.

  👉 Read more
  
  

• AI Fraud Scheme Targets California Universities, Costing Over $11 Million
  This story exposes the misuse of AI to commit fraud, highlighting the importance of AI security awareness. Understanding AI's potential for misuse is crucial for safeguarding operations in small businesses.
  👉 Full story
  
  

• OpenAI Secures $200 million U.S. Defense Contract
  This partnership highlights AI's growing impact across industries, creating opportunities for content on its implications for SMBs.
  👉 Read more
  
  

• Elon Musk's xAI Faces Lawsuit Over Supercomputer Pollution
  NAACP to Sue Elon Musk's AI Company Over Environmental Impact of Supercomputing.
  👉 Full article
  
  

• Apple hints at AI integration in chip design process
  Apple's use of generative AI in chip design could shape the tech landscape, offering SMBs insights into automation trends in product development.
  👉 Read more
  
  

• Databricks Tackles Agentic AI with Automation and Scalability
  Databricks is addressing agentic AI challenges by focusing on automation, observability, and scalability for enterprise deployment.
  👉 Read more
  
  

• AI humans in China just proved they are better influencers
  AI-generated influencers in China are surpassing humans in engagement and brand partnerships, reshaping digital marketing.
  👉 Full story

 AI Economy

Big Picture: Global economic conditions are precarious as the U.S. faces potential stagnation amidst waning consumer confidence, with retail sales declining significantly in May. In the Eurozone, French manufacturing confidence unexpectedly dipped, highlighting ongoing vulnerabilities in the region. Meanwhile, geopolitical tensions related to the Middle East continue to exert pressure on global markets, particularly in oil prices, as analysts warn of potential spikes if critical shipping routes are disrupted. (Bloomberg)

What to Watch

• U.S. retail sales fell 2.7% in May, marking the first decrease this year, suggesting possible economic struggles as consumers tighten spending amid rising geopolitical anxieties.

• French manufacturing confidence unexpectedly decreased in June, raising concerns about the country's ability to keep pace with broader European recovery trends.

• European investments in defense are expected to increase sharply, spurred by geopolitical tensions, with local manufacturers vying for government contracts amid rising demand.

• SoftBank's Masayoshi Son is proposing a $1 trillion AI hub in Arizona, emphasizing the urgency for companies to adjust strategies in the AI landscape, reflecting a broader trend of AI investment acceleration.
  
  

Key Takeaway: Amid declining consumer sentiment and geopolitical pressures, companies must recalibrate their strategies prioritizing technological innovation, particularly in AI, to navigate market turbulence effectively. Notably, insights from McKinsey suggest that organizations embracing AI-driven transformations can achieve improved operational productivity, underscoring the necessity of swift adoption amidst shifting economic landscapes.

AI Community

💬 Q&A of the Week

Q1: As a small e-commerce business owner, I’m intrigued by the 9x higher conversion rate of LLMs compared to search. How can I begin integrating an LLM into my existing customer engagement strategy without a full-time tech team?

Answer (from newsletter team):

Great question! You don't need a full-time tech team to start leveraging LLMs; in fact, many platforms offer plug-and-play tools built on LLM technology. Start by identifying high-impact areas like customer support, marketing content generation, or FAQ automation. Tools like ChatGPT or Copilot-style assistants can draft product descriptions, respond to common customer inquiries, or even help craft personalized email campaigns. Look for no-code or low-code platforms with chatbot integrations for ecommerce (like Shopify plugins or Intercom bots powered by GPT). Begin with one workflow, monitor performance, and expand based on ROI. This incremental approach lets you gain the LLM edge without overextending your resources.

That's it for today!

Before you go we’d love to know what you thought of today's newsletter to help us improve The Leaders Leverage experience for you.

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See you soon,

James Brooks—The Leader’s Leverage editorial team