Monday, April 14, 2014

How To Implement the Pareto principle

The 80/20 Principle or the Pareto principle states that 80% of all are results are generated by 20% of our efforts or actions.

In other words, when it comes to getting the results you want, only a very few things you do really matter. All the rest ... well, they're just a waste of your time.

Business philosophers love to talk about the 80/20 Principle because it applies so to almost any corporate, business or life situation. You've probably heard it said that 80% of profit comes from 20% of customers, or that 20% of a company's staff generates 80% of its productivity. Look at your own company and see how true that is.

Yet the 80/20 Principle is much, much bigger than that. It's a universal, natural fact, proven over and over again in scientific research. And it's visible in nearly every imaginable circumstance. For instance, in the wider world, roughly:
·         20% of thieves account for 80% of the value of all crime
·         20% of drivers cause 80% of all car accidents
·         20% of any community's population utilizes 80% of its resources

And if you look at your own personal life, you'll find that about:
·         20% of the time you spend at work accounts for 80% of what you achieve
·         20% of your clothes are worn 80% of the time
·         20% of your home's carpeting receives 80% of the wear

These little statistics demonstrate the truth of the 80/20 Principle - and the fact that, like it or not, it has an over baring impact on your life.

Now for the power in the Pareto principle. The real power of the 80/20 Principle — the secret to using it as a tool for massive life transformation - lies in finding, focusing on, and exploiting the most important 20% of your resources in every situation in your life.
I'm not talking about cheating or cutting corners. I'm talking about learning to identify the things that matter most to you and add the most value to your life ... shifting the majority of your energy and attention to those things ... and disregarding everything else.

In theory, applying the power of the 80/20 Principle is really quite simple. In practice, it's much easier said than done. 

Pareto's Principle, the 80/20 Rule, should serve as a daily reminder to focus 80 percent of your time and energy on the 20 percent of you work that is really important. Don't just "work smart", work smart on the right things.

Larson Notes & Satire:  Like a lot of things it is hard to figure out what is the 20% that you should be focusing on. Break it down into smaller parts start with finding your least effect 20% and cut those out of your daily, weekly or monthly activities and see what the effect is. Then find the next 20% and so on. In a few short months you will have shaved off a significant amount of wasted time talent and energy.

Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better

P.S. We make telesales for small business affordable by offering programs down to only 15 hours a week. Maybe you could add telesales into your marketing mix call today and find out.