How the 80/20 rule can change your life in 2012?

The New Year is now two days old. How are you feeling about those SMART Goals you made? Remember to remain positive about what you hope to achieve in this New Year.

I love to read and recently I came across a concept which isn’t new to me and I am sure is not new to many of you. However, I am certain it can help you to achieve those SMART goals you have made for 2012.

It is the Pareto’s Principle also known as the 80/20 rule. This principle demonstrates that in most things you do, 80% of your results come from 20% of your efforts. It also means that 20% of your results could result from 80% of your efforts! The latter definition is mind opening and depressing isn’t it?

So of course, we should seek to get the greatest results from the least amount of effort. Makes sense right? So how can you apply the Pareto principle so you see benefits at work, in your pay check and in life in general?

It is simple...spend most of your time and other resources doing things which bring you the greatest amount of success and happiness. Keep at the top of your mind that usually 80% of your results come from 20% of your efforts.

Let us look at an example of a small business owner or entrepreneur.  

Firstly, you need to pay attention to who your clients are. Get to know them. Keep track of what they buy and how much they spend. Analyse the data. You will soon see a trend. Most of the money you make comes from a small number of clients. Focus on these clients. Call these clients first when you get new stock. Ensure that you can always make time for these clients. These clients are your 80% results with 20% effort. They become loyal customers and you don’t have to do much work to keep them happy.

Compare this to focusing 80% of your time, money and other resources trying to encourage and find new customers who may never buy. Stay focused and you will reap positive rewards.

Let’s look at another example.  If you work extremely long hours with no added benefits or recognition, it may suggest that you may not be working smart.

Take a look at your daily tasks. Try to figure out which 20% of your tasks bring the greatest results. Focus on these first. Often times, some of the task which takes up a big portion of your day are really not important and I dare say no one will notice if they are not done. Always focus on the important task first – your 20% which produce the 80% results. At the end of the day your boss is really interested in seeing results.

Apply this concept in your  personal and professional life today and for the rest of the year and you will see amazing benefits. I certainly did.

Feel free to share this blog with others and do comment and let me know what other strategies have been successful for you.