Using The 80/20 Rule To Optimize Your Performance
The 80/20 rule is one of the only genuine "shortcuts" that works in business today. There are many examples of the 80/20 rule (also known as the Pareto Principle after a 19th century Italian economist of the same name). The one I want to talk about today simply states that you will receive 80% of your return from 20% of your activities. For example, make a list of 10 things you have to do today. Chances are that 2 of those 10 items will have 80% of the impact on our organization. Those two items are your priorities.
Most managers I know don’t understand how the 80/20 rule works so they never get to cash in on its benefits. The first key to the 80/20 rule is to identify the 20% of your activities that bring you your greatest return. The second key is to make sure those things get done. For instance, if your job description has the following ten tasks: taking inventory, writing ads, having one-on-ones with sales people, writing schedules, opening mail, taking incoming phone calls, seeing outside vendors, handling customer complaints, typing reports, and arranging displays, your job would be to determine which one or two of these will bring the greatest return to you and your company and to make sure they get done first-as a priority.
Too many managers make up a to-do list and race through it with little regard to whether they are truly accomplishing the "first things first". They are busy with activity but rarely complete the areas that will bring the most benefit. Here are some ways most managers get things done. See if any of them sound familiar:
- Unpleasant Things First. This is when you do the thing you hate first, just to get it out of the way. This is o.k. as long as the unpleasant thing is a task that will bring you top return on your time. If it’s not, you’re not maximizing your time.
- Unfinished Things First. This is when you run down a to-do list and pick up tomorrow where you left off today. However, if this is being done without regard to the "first things" being addressed, (what if the "first things" are at the bottom of the list?) you have the things that matter most at the mercy of things that matter least! What impact does that have on your people, your customers and your organization, over time?
- Urgent Things First. Now you’re working on whatever is screaming the loudest-even though it may be a low priority item. You’ll find that when you begin doing first things first, you have far less "urgent" issues to deal with.
- First Things First. You have identified the areas of greatest importance and impact to your organization, schedule them and do them first.
Of the ten sample tasks listed above, let’s say that the item that brings you the greatest return is spending one on one time with your salespeople. (Since in sales we have to get things done through others, this should probably be on everyone’s list). In order to see that this vital issue is addressed you should be scheduling times to meet with your people-not just hope you have time to do it when everything else is done . You’ll also find that as you develop your people they can take on more responsibility for those less important tasks. (And when you spend more quality time with your salespeople you’ll probably find you have fewer unhappy customers to deal with as well.) Where you get your greatest return may differ from where someone else gets theirs. The important thing is that you spend some time identifying those areas and then scheduling them. Too many managers prioritize their schedule when they need to be scheduling their priorities!
After you have determined the "first things" you have to have the resolve and discipline to see that they get done! Otherwise you’ll find yourself getting caught up in the thick of thin things.
Once you begin to do this on a daily basis, you can have more impact and get more done in less time-because you’ll be doing what really counts. Put the 80/20 rule to work for you by evaluating your average day. Where do you get your greatest return? How much time have you really been spending there? What can you do to increase the time you spend doing what really matters? Figure this out and you’ll be head and shoulders above the average manager who continues to major in minor things.
Dave Anderson is President of The Dave Anderson Corporation. He can be contacted by phone at (800) 519-8224, or by fax at (650) 949-4270. For more information, see his web site at www.learntolead.com.
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