Time Management

August 20th, 2012

When you draw up to-do lists, set schedules, make appointments, and so forth, chances are you may be wasting your time. So why even try?

Can any of us really manage time or can we at least keep time from managing us?

Turns out there is a mathematical law called the Pareto Principle* which says that (in most situations) 80% of the effects come from 20% of the causes.

The most famous example of this is the oft-repeated factoid that in sales groups 80% of the revenue comes from 20% of the team.  (There are dozens of other examples, ranging from wealth distribution to damage from natural disasters.)

The Pareto Principle holds sway for most work efforts that aren’t purely rote.  Most people obtain 80% of their actual results from 20% of their actual effort.  If you really think about it, isn’t this true for you? It’s certainly true for me.

Rethink Your ‘To Do’ List

Unfortunately, most time management involves “to do” lists, which tend to treat the 20% of your work that really matters as equal to the 80% of things that don’t.  Having a simple list of things to do almost forces you to waste time doing stuff that doesn’t really count.

That’s true even if you prioritize according to importance. Plenty of important things take so much effort that, in the end, they’re not worth actually doing.

Here’s how to use the Pareto Principle to manage your time more effectively.

When you make a “to do” list, prioritize each item by the amount of effort required (1 to 10, with 1 being the least amount of effort) and the potential positive results (1 to 10, with 10 being the highest impact.)

Create a New Ranking

Now divide the potential results by the amount of effort to get a “priority” ranking.  Do the items with the lowest resulting priority number first.  Here’s a simple example:

  • Task 1: Write report on trip meeting.
    Effort=10, Result=2, Priority=5
  • Task 2: Prepare presentation for marketing.
    Effort=4, Result=4, Priority=1
  • Task 3: Call current customer about referral.
    Effort=1, Result=10, Priority=0.1

See your new priority-based order? You do Task 3 first; Task 2 second, and Task 1 last–if at all.

This simple method ensures that the 20% of your effort that really makes a difference always gets done first.  As for the 80% that doesn’t really matter, it’s automatically postponed, and possibly tabled forever.

I know this all sounds pretty simple; even simplistic, however it has helped lots of us focus on our highest earning activities instead of just being busy. 

  • Not to be confused with the Peter Principle that says many employees will be promoted until they reach their level of incompetence.

 http://en.wikipedia.org/wiki/Peter_Principle

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 Bob Cohen at 416-229-6462 or Sam Sacco at 910-509-0691.

 We can also be reached at bob@racohenconsulting.com or sam@racohenconsulting.com.

 Sam and Bob have successfully completed over 135 staffing industry transactions.

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