Morning everyone,
This morning I’m going to try and give a few tips on time management and the 80 / 20 rule or as it is often referred to as Perato’s Principal after its inventor Alfredo Perato.
However before I start a quick thought for you all;
The people who complain about how short time is are the very same people who
manage their time the worst.
So who in the last week has heard themselves saying the following;
Just haven’t got the time mate…………………
Yeh! when I get a spare 10 minutes pal……………………
Just haven’t had any time love!!!
The 80 / 20 rule is one of the most helpful concepts of time management in existence today and has been around since 1895. All great business minds have at some stage endorsed it.
Alfredo Perato noticed back in 1895 that people in his immediate surroundings could be divided into 2 distinct categories. Either they were the vital few – the top 20 percent performers in terms of positions of authority, personal wealth and influence and the trivial many – the bottom 80 per cent.
He then noticed that this peculiar relationship of two previously unknown commodities were reappearing consistently in all economic patterns and subject therefore to the very same principal. Until then everything had been based on the laws of averages which the human mind could easily relate to and invariably a tale of 50 and 25 per cents either way.
So lets apply the 80 20 law without any further delay.
For example 20 per cent of your business activities will generate 80 per cent of the results. Sound feasible. Maybe ?
Or how about 20 per cent of your customers will give you 80 per cent of the business. Does that sound familiar yet.
OK lets try this one. 80 per cent of your products and services will only represent 20 per cent of your sales
And finally my favourite….
20 per cent of the tasks you choose to carry out routinely day in day out in your business will account for 80 per cent of the value of what you do.
Going on, if you have a list of 10 tasks to complete, then 2 of the 10 tasks will work out to be as much as or more valuable than the remaining 8 put together.
I think I will repeat that as its pure nectar to me;
If you have a list of 10 tasks to complete, then 2 of the 10 task will work out to be as much as or more valuable than the remaining 8 put together.
However what makes this particular rule more intriguing is that each of these tasks may take the same amount of time to complete, but one or two of these will equate to being either 5 or 10 times more valuable as any of the others.
Powerful stuff eh!!!
Lost anyone yet?
Now, out of the 10 tasks we have each day to compete, which ones are we most likely to complete first and which ones will we leave and procrastinate on? Three guesses!!!
Again the fact is 80 per cent of us here will delay on the top 20 per cent tasks such as sales calls, customer confrontations and business growth matters,
Instead we will opt for, at the drop of a hat mundane matters of less urgency and low value tasks that will not make a significant difference.
Or put another way only 6 people here will work on hi value tasks first.
Of course, the most valuable tasks are invariably the hardest. No one ever said business was easy!!! However do not choose any task in the bottom 80 per cent without completing a top 20 task first.
Therefore before attempting any task give it the 80 / 20 test and be honest.
A simple acid test is; If this task is not completed now the effects of this will have a critical impact on the business.
Resist the temptation to clear up small things first. Your future success depends on your ability to understand high and low value tasks and the principals of 80 / 20 time management.
And the final note;
If you catch yourself doing £9.00 an hour stuff today then you will earn £21,500 per annum. If you want 100k per annum plus you need to be working on stuff worth £109.00 per hour and guess where you will find those tasks!!
Frank
