Pareto on Time Management

Dear Managers and Leaders!

In my previous post, I discussed the importance of focusing on what is really important for your business. I was saying that people are trying to do way too many things, often avoiding what is most important to them and their business. The essence is when you can eliminate everything that is not necessary from your agenda and focus only on what brings the most value to your life, business, team, or project. Doing things that do not bring value will simply waste your time and send you away further from success!

Of course, this is good in theory! What is a lot tougher is to decide what to remove from your agenda and what to keep! To help you do that, I’d like to explore a simple rule with you today that, I’m sure, you have heard about before. The rule is the Pareto’s rule, which is better known as the 80/20 rule. Vilfredo Pareto demonstrated in the 19^th century that 80% of the wealth and income is produced and possessed by 20% of the population. Pareto’s law becomes more shocking when you find out that it also applies outside of economics! Pareto himself found that 80% of his garden peas were produced by 20% of his peapods. So, more generally, this law is known as “80% of the outputs result from 20% of the inputs”.

So, how does this relate to the problem of removing un-necessary things from your agenda? Well, according to Pareto’s rule, you can say that 20% of the action items currently on your agenda will bring 80% of the results! So, start asking yourself the question: what are those actions? If you can identify those 20%, then you are golden! Here are some Pareto statements to help you thinking through your junk removal activity. Hopefully this will make you look at the world from a different perspective...

• 20% of your staff brings 80% of your results (please focus on them!)
• 20% of your customers will bring 80% of your revenue (please focus on them!)
• 20% of your actions will bring you 80% of your results
• 20% of the time spent working will get you 80% of your goals
• 80% of your crises are created by 20% of the people you interact with

I have not verified these statements scientifically but they feel right to me. Do you agree that they make sense?

So, I suggest that you go through your agenda, that you observe yourself and ask what can be these 20% of anything you do that brings most of your results and successes. Once you identify those items, it will become much easier to toss the rest aside or put less emphasis on it. What do you think, dear manager and leader?

Until next time,

Remi Cote