I’m sure you’ve all heard of the 80/20 rule but probably not in the way we mean for this article in terms of economics. The 80/20 rule states that 80% of your results come from 20% of causes. It was observed by a man named Vilfredo Pareto in 1896. This principle explains the correlation between effort and outcome. So, how can this be applied to business? Using this technique can help prioritize tasks that are of highest impact throughout your work day. Here are a few detailed ways that you can use the Pareto Principle in your business.
Prioritize your day. Complete 20% of the most important tasks on your to do list for the day will result in 80% of the impact. Therefore, you must first make the list and prioritize the highest impact at the top. If any of these tasks involve collaboration or if there any that have been keeping projects from moving forward, these are to be done first.
Decisions decisions. This will assist with problem solving by helping prioritize the solutions.
Identify problem.
What are the causes of the problem.
Break up problems into smaller groups
Assign value to each problem
Develop a plan that focuses on top 20%
This principle, in practice, can help your business become more efficient by identifying its top priorities. It will get the maximum impact with the least amount of work, therefore, increasing productivity. It will also make your day seem less daunting by breaking things up into more manageable parts. It’s time to work smarter, not harder.
