Have you heard of the Pareto Principle or 80/20 Rule as a time management strategy? The 80/20 rule means that 80 percent of the outcome comes from 20 percent of the input. Sounds like a bunch of mathematical jargon, huh?
Wondering WHY I’ve chosen to blog about the 80 / 20 Rule? It’s in response to Real Life Scenario #9 – “I’ve heard about the 80/20 Rule, but I’m not sure how I can apply that to my daily life more productive.”
I’ve been covering real life time management scenario’s all month – so feel free to look back through a few posts for some additional strategies!
In business, we can apply this strategy to spending our time on the activities that will bring us closer to the money. The trick is delegating 80% of your activities to another member of your team – so you can concentrate on the 20% that ONLY YOU CAN DO. The high value activities. The activities that set you and your business up for success. (If you don’t have a team and work solo then the same rule applies. Concentrate on the high value activities – about 20% of what you are currently doing. This will allow you to increase your income, which will enable you to outsource the other 80%.)
Sometimes, according to Perry Marshall in an article from Entrepreneuer.com, small business owners can struggle with this concept.
“We entrepreneurs are extremely prone to rationalize, ‘I can do it myself.’ Then we spend six hours trying to extract a virus from our computer or fix a leaky faucet.
Sure, we may be competent to do that little job. And sure, sometimes you have to do everything when you start out. But now you’re doing a $10 or $20 per hour fix-the-faucet job and you’re not doing your # 1 job, which is getting and keeping customers. That job pays $100 to $1000 per hour.”
This has been the downfall of many small businesses, Marshall said,
“Many a promising business has been killed by those little jobs. When someone says ‘time management’, you probably think of time logs, goal lists, and ‘Getting Things Done’. But getting busy is not what makes you rich.”
Majoring in the minors leads to a lengthy task list and slow progress towards our goals. When you are able to perform your daily life more efficiently today – by focusing on the high value activities – it will benefit you long term. Imagine what is possible if you spend your time on the 20% high value activities!!!
What are the activities that make up your 20%? What can you delegate (or even delete from your schedule)? How do you use the 80 / 20 rule in your daily life? Please share below.
Wondering about the next post? Real Life Scenario #10: “My obstacles are mental distractions. I think of something other than the original task, and lose focus quickly.
image courtesy of Arvind Balaraman/ freedigitalphotos.net