Did you know about 20 per cent of the carpet in your home receives about 80 per cent of the wear?
This little force of nature exists all around us and is known as the Pareto Principle after 19th century Italian economist, Vilfredo Pareto. He observed that the majority of agricultural land in Italy was owned by a vital few number of agriculturalists and began noticing it elsewhere as well.
In our businesses, similar forces exist. You might find that although you have a large client list, only a few of them generate the majority of your revenue. It is highly likely you will also find that a small number of daily, weekly or monthly tasks produce the majority of your income.
Once we build an awareness of how the Pareto Principle plays out in our professional and personal lives, we are able to direct our resources in more efficient ways, which both improves our efficiency and reduces our stress at the same time.
For instance, who are the clients that produce the majority of your income? What do they have in common? How are you able to find more of them and how can you address their needs better?
On the other hand, what are the 80 per cent of tasks you’re performing that aren’t producing? How can you phase them out or reduce their burden on your time?