P/PC is the ratio of production of desired results and production capabilities, the ability of an asset to produce results. 7 Habits of Highly Effective People by Steven R. Covey book talks about the rule. I am grateful to my mentor, he is the one who recommended me this gem of a book. The book talks about the P/PC balance, it is a principle that anyone can use in their everyday life to reap a combination of short and long term benefits.
While production is the process of creating, production capabilities is the ability or capacity to make something. Both of these are the two extreme ends. Only focusing on production will end up creating short-term results. In long-term, the results will deteriorate because you did not nurture your capability of production. On the other hand, if you shift your focus entirely on ability to produce, you will not be able to create short-term results and will never get a chance to see the long-term returns. Striking the right balance will create the efficient results.
P/PC Balance | Leadership
In terms of leadership, when it comes to maintaining that delicate balance, choose to create an influence over fear. Scaring people into something does not work well in long run, it is not sustainable and team dissolves. Whereas, if you genuinely invest yourself into building someone up, help them grow and influence them positively, it will create an impact that will last forever. Followers will want to do things for you not because you said but because they feel like doing it. Not just the leadership, this rule is applicable in all walks of life.
We are all humans, and needless to say we are not perfect. We might digress time and again especially when striving to maintain the tricky balance. The best you can do is, realize as soon as you get off track, make sure to bring yourself back on track. Do not let impatience and greed take over.
To maintain the P/PC Balance, the balance between the golden egg (production) and the health and welfare of the goose (production capability) is often a difficult judgment call. But I suggest, it is the very essence of effectiveness.
– Stephen R. Covey