The 1% improvement philosophy, which is usually better known as “marginal gains”, focuses on breaking something down into tiny components and improving each one slightly to enhance the overall outcome.
By doing this, a series of small improvements can deliver remarkable overall results.
The expression “marginal gains” was coined by Sir David Brailsford while he was performance director of British Cycling from 2003.
Implementing this philosophy resulted in unprecedented success, including record Olympic gold medal hauls and five Tour de France wins for the UK.
Before Brailsford, however, former England coach Clive Woodward had used a similar strategy, which he termed “100 things 1% better”.
According to the European Medical Journal, both Woodward and Brailsford drew inspiration from earlier methodologies, including the Japanese concept of Kaizen and the work of sports psychologist Dr Yehuda Shinar.
Read more about the 1% improvement philosophy and marginal gains in sport, and discover how you could apply the same principles to your financial planning.
Woodward recognised that many small gains could turn great teams into champions
As in most sports, the margins between winning and losing in professional rugby are often wafer-thin and can come down to a delay of a pass or a slip that leads to a missed tackle.
The margins can arise from mental mistakes too, especially towards the end of matches, where a momentary lapse in concentration can decide the outcome.
When Clive Woodward took charge of England, he introduced training methods and performance metrics that were ahead of their time.
He broke performance down into a series of components he called “critical non-essentials” and sought to improve each one incrementally.
Great skill and top physical fitness will usually get a team so far, but, as Woodward recognised, it is often a series of almost imperceptible improvements that turn great teams into champions.
Importantly, he realised that marginal gains, involving a series of achievable goals, were far easier to contemplate than a simple instruction to be X% better, in general.
Once those small gains started to deliver results, confidence would grow, and the benefits would start to accumulate even more quickly, as minor technical improvements had a massive impact on performance.
Woodward also recognised that similar gains in player recovery processes would deliver effective, tangible returns.
Woodward focused on gains off the pitch as well as on it
It was not just on the pitch where Woodward sought to find 1% gains.
He extended the philosophy to nearly every factor that could affect performance, including sleep quality, travel arrangements, and nutrition, to improve long-term performance.
All the adjustments were small, but together they compounded into a significant competitive advantage.
Woodward also focused on the mental side of the game.
He stressed that decision-making under pressure, emotional control, and resilience were all critical to the overall team performance. So, players were encouraged to take personal responsibility and develop mental habits that supported and enhanced their performance.
More than 20 years later, the Woodward approach still aligns perfectly with the demands of the modern game. Tactical intelligence, speed, and physical performance are all stretched to their limits, and 1% gains can be the difference between victory and defeat.
Applying the 1% philosophy to financial planning
One of the most powerful aspects of the 1% philosophy is its relevance beyond sport.
Financial planning can feel overwhelming because it is easy to think that meaningful progress requires dramatic action, such as attaining big investment returns or making far-reaching changes to your financial lifestyle.
In reality, as with rugby, long-term success is often built through small, consistent improvements over time.
Applied to your finances, the 1% philosophy could mean:
- Increasing your pension contributions slightly each year
- Gradually reducing your unnecessary spending
- Minimising the charges on your investments
- Setting aside a little extra into savings and your emergency fund.
For example, increasing your retirement contributions by just the rate of inflation each year will seem quite manageable today, but over time, it could significantly improve your retirement income through the effect of compounded returns.
Likewise, the same approach of making minor changes can help clear your debt more quickly and bolster your long-term financial security.
By adopting consistent and achievable steps, you are more likely to succeed than if you set yourself unrealistic targets that you constantly fall short of.
Small improvements can create meaningful financial security, flexibility, and confidence in your future.
Get in touch
Whether it is playing rugby or managing your finances, 1% gains can help you develop a framework for long-term success.
Clive Woodward recognised that success in rugby, or any sport, is rarely the result of one big change. More often than not, it is the outcome of hundreds of small ones, applied with discipline and intent.
The same principles can be applied to securing your long-term financial future.
If you would like to talk to us about your own long-term financial plans, please get in touch.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.