Have you ever wondered which of your activities & clients produce the best results? Have you ever measured which of your activities & clients produce your best results?
Enter the 80-20 rule, otherwise known as the Pareto Principle.
This great principle specifies that “80% of consequences come from 20% of the causes, asserting an unequal relationship between inputs and outputs”. So why is it relevant for you and me? The 80-20 rule, assists us in determining which activities & clients to focus our efforts and resources on, so that we can achieve maximum efficiency, results and value. With this principle in mind, we can track / measure / calculate those areas to prioritize, and where to place our focus and resources.
By paying attention to this principle…
• It will allow for more efficiency in your time spent on clients or activities
• It will allow you to spend time working ON your business, rather than only IN your business
• It will allow you to better manage your WORK-LIFE balance
In business and in our personal lives, the 80-20 rule can apply to many aspects, including:
• 20% of our activities (time spent) = 80% of our results
• 20% of our leads (clients) = 80% of our income
So as we see with the Pareto Principle (and as most of us know, but don’t always put to practice), it’s not how much time we spend on an activity… But rather did we use this time effectively.
Many of you may ask the following:
• How do we measure what is effective & what is not?
• How do we know which ACTIVITIES are more valuable TIME-WISE?
• How do we know which CLIENTS are more profitable?
• How do we know which SOCIAL MEDIA activities are more profitable?
• How do we know which of our services / products are more profitable and worth our time?
It’s not only about “how do we know”, but rather how do we measure it to determine the best ROI on our time and activities.
• What’s our ROI (return on investment) for time spent on a SPECIFIC ACTIVITY ($ / time)?
• What’s our ROI for time spent on a SPECIFIC CLIENT ($ / time)?
• What’s our ROI for time spent on PRODUCING A SPECIFIC PRODUCT OR OFFERING A PARTICULAR SERVICE ($ / time)?
• What’s our ROI for time spent on SOCIAL MEDIA ($ / time)?
You can’t change an activity or habit if you don’t track or measure it.
Start with the following steps for tracking your time and then do the following with your clients or anything else you want to measure:
STEP 1: Observe how you use your time • What time of the day is your energy level the highest? • Which personal habits cause you to adjust your daily plans? • When do you have the most interruptions?
STEP 2: Identify the top tasks which support your goals • Look at your top goals & identify the tasks you need to do which align with those goals. What’s your vital 20% to focus on? • How much time do you need to allocate for these? • What are you doing the remainder of the time? • What’s your ROI on the remaining activities?
STEP 3: Prioritize your daily activities • Time blocking • Planning SAVES time • A, B, C method of time management & prioritizing •D and E method
© Lesley Kaplan is passionate about life and enhancing people & processes. She assists businesses, organizations & individuals with consulting, coaching, training & development, promotion, sales, strategy and branding. She is the Founder & CEO of “L.A.K. Creations & Consulting” and “Build Your Biz with Lesley Kaplan”. She organizes & facilitates a monthly networking group and a separate online bi-monthly Mastermind Group for Women in Business. www.LesleyKaplan.com