Small Choices, Big Impact: The Compound Effect

By Sally Luehman | Blog #4

When most people talk about the compound effect, they usually refer to money. The idea is simple: small, incremental gains over time create a massive result. But what if we applied this same concept to your career?

Imagine the compound effect as an overall theme in your work life. Over time, the small, consistent efforts you put in can accumulate to a tipping point. All the little things you do every day—when compounded—result in something far greater than the sum of its parts. These tiny actions build up to create a result that’s priceless.

But how can you start using the compound effect in your own life?

Take a Look at Your Current Choices

If you want to understand the compound effect in action, start by looking at the decisions you’re making right now. Take a step back and examine your daily habits—what are you doing every day that’s shaping your results? What small choices are you making that are either helping or hindering your progress?

The key is patience and playing the long game. It's about loving the process and being committed to the journey. Instant gratification might feel good in the short term, but it can steal your dreams over time. Ask yourself: What instant gratifications am I giving in to? Are they helping or hurting you in the long run?

Sustainable, life-changing results are built on consistent, incremental steps. The compound effect is at work every time you choose to take the right action, even if it feels small.

The Lumberjack Story: The Power of Small, Smart Decisions

Here’s a story you might have heard before about two lumberjacks competing for the same job. The boss said whoever could chop the most wood by the end of the day would get the job. Both of them worked hard, but one took breaks every hour to sharpen their saw. The other kept working nonstop. By the end of the day, the lumberjack who took the time to sharpen their saw was the clear winner.

At first glance, it might have seemed like the non-stop worker was winning, but the one who took breaks and sharpened the saw was playing the long game. By stopping to rest and refresh, they were able to keep their edge, and that extra effort paid off.

This is exactly how the compound effect works. Whether it’s sharpening your skills, taking time to rest, or investing in your growth, each small action compounds over time, creating results that far exceed the individual efforts.

The Secret to Sustainable Success

Just like the lumberjack, you need to consistently sharpen your skills—your mind, your body, and your work habits. The compound effect works when you put in those daily, focused efforts. And sometimes, that means taking a step back to reassess, learn, or re-energize.

In your career, those small, intentional actions will eventually pay off. What if you looked at every challenge as an opportunity to sharpen your skills instead of a roadblock? Over time, the momentum builds, and it becomes easier to keep moving forward.

I’ve experienced this first hand in my own journey. When I first considered starting my own RE/MAX franchise, my mind was full of doubts and fears. For about two years, I fought against my own self-talk, telling myself I wasn’t smart enough, the market was too risky, and I’d never be able to handle the hard work.

But then, one day, my son said something that changed everything. He told me, “This could be the family’s legacy. This choice could create generational change.” That simple shift in perspective—that one conversation—helped me realize how powerful small decisions can be. One choice, one action, one step at a time.

Your Takeaway: Start with One Small Choice

The compound effect starts with a single choice, repeated over time. Whether it’s deciding to invest in your personal development, sharpening your skills, or taking a break to rest and refresh, each choice matters.

So, ask yourself: What small choices am I making today that will create lasting impact in my career and life? It’s all about momentum. Once you start making the right choices, the momentum will build, and the results will follow.

If you’re ready to apply the compound effect to your career or need help identifying those small but impactful choices, let’s talk. A coach can help you sharpen your approach, stay focused on your goals, and create a legacy of success.