I can’t remember exactly when I was first exposed to the 80/20 Rule but I know when it first really hit home. I had taken my first management job starting a catering department from scratch. I learned quickly that I needed to maximize my time and efforts to reach the goals being set for me.
As I was busy poring over cost projections, monthly sales and marketing plans I realized that many of principles of one of my favorite books applied Living The 80/20 Way by Richard Koch. Basically it states when you start to analyze and breakdown your life into elements it’s very easy to see 80/20 ratios all over the place. The trick, once your key happiness determinants have been identified, is to make everything work in harmony and avoid wasting time on those 80 percent activities that produce little satisfaction or results for you. By tweaking the rule a bit to apply to my work I realized that in general:
In business: 80% of business comes from 20% of your clients. Knowing this makes it possible to determine the clients on which to focus your advertising and customer service efforts.
In time management & productivity: 20% of your time yields 80% of your results. So choose wisely what you spend your time on! The corollary is that the last 20% of a project takes 80% of the time spent on that project, which is a good reason to avoid perfectionism.
The message is simple enough – focus on activities that produce the best outcomes for you. This applies to both your business life and your personal life. I think the 80/20 rule is a powerful tool to utilize in any small business. I know it fits me well in all areas of my life because it's about living life productively and seeking maximum satisfaction by focusing on your passions. Who has time to waste?
“What you do every day matters more than what you do once in awhile.” (Gretchen Rubin, The Happiness Project)
Happy Organizing
-Erin
No comments:
Post a Comment