By Herald Nairobi
Every minute of your life is gold. Are you treating it that way?
Every human being wants success. Everybody wants the best this life can deliver. Nobody enjoys crawling, living in mediocrity. No one likes feeling second-class and feeling forced to go that way. So what are the rules that every successful person knows and applying those rules he becomes successful? Here is the most important and amazing rule that every person should implement in his life and career – The Pareto Principle or 80/20 Rule.
Pareto Principle or 80/20 Rule– Do you know?
20% of your time produces 80% of your results.
80% of our revenues are generated by 20% of our customers.
80% of our complaints come from 20% of our customers.
80% of our quality issues occur with 20% of our products.
20% of our contributors provide 80% of our funding.
20% of our employees are responsible for 80% of sick days.
Yes, I am going to share with you one of the most helpful of all concepts of time and life management. The Pareto Principle, which is also called 80/20 rule.
Some of business people might know this amazing rule but they do not know the power of this amazing rule. Pareto noticed that people in his society seemed to divide naturally into what he called the “vital few”, the top 20 percent in terms of money and influence, and the “trivial many”, the bottom 80 percent.
This principal also says that 20 percent of your tasks will account for 80 percent of the value what you do.
This means that if you have a list of ten items in your to do list, two of those items will turn out to be worth five or ten times or more than the other eight items put together.
If you analyse the items on your “To Do” list, chances are just a few of the items are tied to important issues. While we may take satisfaction in crossing a large number of the smaller issues off our task lists, the Pareto Principle or 80/20 rule suggests we should focus on the few, larger items that will generate the most significant results.
If you are a sales representative then work hard to understand the characteristics of the 20 percent of your customers who generate majority of your revenues. Do invest your time on identifying and qualifying similar customers.
On the regular basis evaluate the 80 percent of your customers that generate approximately 20 percent of your business and identify opportunities to shed those customers for those that drive better results. Some managers and firms actively cut their customer listings every few years, effectively firing the bottom performing customers.
Here is another fact that the amount of time required to complete an important job is often the same as the time required to do an unimportant job. The difference is that you get a tremendous feeling of pride and satisfaction from the completion of something valuable and significant. However, when you complete a low –value task using the same amount of time and energy, you get little or no satisfaction at all.