Charles Schwab's $25,000 Check for Ivy Lee

The Famous Story

In 1918, productivity consultant Ivy Lee visited Bethlehem Steel Corporation to advise its executives. This meeting would become one of the most famous moments in productivity history.

The Setup

Charles M. Schwab, president of Bethlehem Steel (then one of the largest steel companies in the world), was looking for ways to increase his team's efficiency and productivity.

Lee offered to spend 15 minutes with each executive, and Schwab asked, "How much will it cost me?"

Lee replied: "Nothing. Unless it works. After three months, you can send me a check for whatever you feel it's worth to you."

The Method Lee Taught

Lee's method was remarkably simple:

1. At the end of each workday, write down the six most important tasks for tomorrow
2. Prioritize those six items in order of true importance
3. The next day, concentrate only on the first task
4. Work until the first task is finished before moving to the second
5. Approach the rest of the list in the same fashion
6. At day's end, move unfinished items to a new list of six for the following day
7. Repeat this process every working day

The Result

After three months, Charles Schwab was so delighted with the progress his company had made that he wrote Ivy Lee a check for $25,000 — the equivalent of a $400,000 check in 2015 dollars.

Why Such a Large Payment?

The check's size reflects:

• Dramatic improvement in organizational efficiency
• Simplicity of the solution (proving simple isn't easy)
• Immediate practical value to the company
• Schwab's recognition of genuine innovation

The Method's Enduring Value

Why It Works

Limits Decision Fatigue: Only six tasks eliminates overwhelming choice

Forces Prioritization: Must identify truly important work

Encourages Deep Focus: One task at a time, done completely

Realistic Planning: Six tasks is achievable in most workdays

Manageable Scope: Not overwhelmed by massive to-do lists

Historical Context

This took place during the early 20th century when:

• Scientific management was emerging
• Industrial efficiency was being studied systematically
• Time and motion studies were revolutionizing factories
• Bethlehem Steel was a major economic force

Modern Relevance

Over 100 years later, the Ivy Lee Method remains popular because:

• Works in knowledge work as well as industrial settings
• Requires no technology or special tools
• Takes minutes to implement
• Provides immediate structure
• Addresses timeless human challenges

The Lesson

Schwab's $25,000 check teaches that:

• Simplicity can be more valuable than complexity
• Prioritization is the essence of productivity
• Effective methods transcend industries and eras
• Sometimes the best solutions are embarrassingly simple