The Pareto Principle

You have so much going on that it can be quite overwhelming at times. To make it worse, a lot of what you spend your time doing doesn't add to your bottom line or help you accomplish your goals. With your attention pulled in so many directions it can be hard to keep focused on what truly matters. But how do you break this cycle and cut through the waste so you can focus on the truly important? 

 Vilefredo Pareto just might hold the key to unlocking the magic code to increasing productivity and regaining your sanity.

Never heard of Vilefredo Pareto? You're not alone.  

Vilefredo Pareto was an economist of little note who lived and died Switzerland almost 100 years ago. Not much of his work or life garners our attention. However, at some point in his 75 years of life Pareto stumbled upon a mathematical truth that could truly transform your life.

The Pareto Principle first popped up on my radar while reading The 4-Hour Workweek by Timothy Ferriss a little over a year ago. At it's most simple The Pareto Principle simply states that 80% of outputs come from 20% of inputs. This has been found to be true across all manner of disciplines including time management, customers, and economics.

A few alternative ways to look at the principle include:

• 20% of your customers generate 80% of your income

• 20% of your customers create 80% of you problems

• 80% of your results come from 20% of your effort and time

It drives home the concept of prioritization. What you focus on matters immensely. If you are focusing all of your efforts on the wrong things you won't get the results your working so hard to achieve. You will run yourself ragged with nothing to show. Thankfully, you can learn and apply the 80/20 principle to your life and alter the outcomes you are working so hard to reach.

Pareto and the 80/20 principle will be of most help to you if you leverage them to assess your current efforts. Here are three ways you can apply it:

1. Take stock of current efforts. Write down everything you are doing and outcomes it is producing. Be unattached from the outcomes here, simply list out your activity and how it has impacted your work, life, etc.

2. Reprioritize what's producing. Perhaps you find that phone calls are driving your business and resulting huge returns for you, despite the fact that you make very few. In that case, pick up the phone and start making more calls. The key here is to determine your areas of strength and multiply them.

3. Eliminate waste. Consider cutting those things that are wasting your time and energy. It might be something you think would be generating results but its just sucking up resources. Cut it ruthlessly. Find your inefficiencies and eliminate them. This will free you up to focus on what's actually generating for you.   

These three steps show where to double down and where to eliminate. Apply this principle to your life, get a hold of the few things that truly matter, and see how drastically it transforms things for you. 

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Bonus tip:

Develop a "Stop Doing" List

A few weeks back I wrote a series of questions to help you evaluate the items on your "to do" list that pairs well with the Pareto Principle that will be helpful to you. Here is an expert from that post:

"The solution to your crazy schedule and consequently a crazy task list isn't just another list but the process of evaluating exactly what you are doing each day. A "stop doing" list helps you take a cold hard look at what you are doing and literally stop doing those things that are not the most fruitful for you and your team."

Bonus Resource:

For more on the Pareto Principle and other awesome tips that are sure to shatter your world, in a good way, check out The 4-Hour Workweek by Timothy Ferriss. 

Lead With Your Weaknesses

You're not perfect. Whether it's sarcasam, responding out of anger or not delivering on your commitments, you make dozens of mistakes each and every day. The temptation to hide and minimize your mistakes is overwhelming because the first thing you want to do is run as far from them as possible. 

While this is your natural tendency it might not always be the best strategy for responding to failure. Our failures provide us with an opportunity to take giant steps forward and helps us connect with others. Today, I want to encourage you not to run from or hide your failures but to embrace and share them openly. 

Display your authentic self. Openly discussing your short comings and failures knocks down the dividing wall and allows others to connect with you. Whether you are aware of it or not there is a dividing wall between you and those you impact and lead. Often times that wall of division is the gap between who you truly are and others perception of you. The quickest way to shrink this gap is to authentically share your struggles and failures. The fear in doing so is that it will change how people see you. The funny thing is that this fear is 100% true. They will see you differently, just not in the way you fear they will. 

Part of the reason people lean in and see you more positively when you share your struggles is that they can relate. People aren't perfect and they know it. They already know you aren't perfect either and that you make mistakes because you're human. Opening up and leading with your weakness displays confidence not the lack there of. People will follow a leader who doesn't run from his short comings. 

Be known for owning your stuff. The next time you drop the ball or just blow it, seize it for the opportunity that it is and own it. Do far more than acknowledge that you messed up, ask those impacted by your failure to forgive you. Trust me, this is a trait you want to be known for. It displays a humble heart, empowers others and will transform your relationships.     

Your Not in Control

You want to be in control. You desire control over your surroundings and over all your outcomes in life so you work hard and put in long hours. Sleepless nights and caffine are the rent you pay and rent is due every day.

Hustling is important. One of the many traits that turns up time after time when studying the successful is that they run at a different pace than everyone else around them. In short, they hustle. No matter the field and no matter the role get after it. 

To acheive your dreams and accomplish your goals, you are going to have to work extremely hard but be careful not to buy the lie that everything rests within your grasp. 

You can't force results. No matter how many hours you put in or how hard you work you can't force success to happen. Many things are beyond your control. You can do everything right and the deal still doesn't go your way and that's okay. As I've said before, the power is in the process.   

You are responsible for the process. You are accoutable for doing your part. Do the things that accompany success. Order your habits, attidudes, and character. Show up early, remain diligent and stay late if you need you, but remember that those things are just part of the process.  

Find rest in your limits. Labor hard and hustle but also rest in the knowldege that results are ultimately outside your control. There is a certain level of peace that comes from knowing that you have given your all. Give your all and lay it all on the line every day and you'll be able to hold your head high whether the results come or not.

Client Meetings

Regardless of your current profession meeting with people is one of the most important aspects of your success. Over the years you will share countless meals with people you are looking to influence and build healthy relationships with. Changing how you approach these situations can transform your results as well as your business. Today I discuss how you can run meetings that do far more than generate business. 

1. Take It Offline

The first step in building relationships and taking your game to the next level is to get personal. There is only so much you can do over the phone or email, at a certain point you need to meet face to face. When it comes time for that, pick up the phone or shoot them an email offering to treat them to coffee or a meal. Pick a place closer to them than to you. Begin developing the habit of putting their needs above you own, it will be invaluable.  

2. Personally Connect

The very best meetings are those where you connect on a personal level. Make your time together about them. Spend over 95% of your time asking good questions about the them and their story. It communicates that you genuinely care about them, are looking for common ground and value relationships over business. Connections are built on common ground. You will find that the better you become at connecting with people, the richer your life will be and the faster your business will grow.     

 3. Explain Your Process & Set Expectations

When you do broach the topic of business, use it to as an opportunity to establish expectations. Frustrations are born from unmet expectations. Everyone carries certain expectations with them through life. Sadly, these aren't always communicated and it reaks all kinds of havoc both personally and professionally. Why not use your client meeting to establish expectations for your future clients? Use it as a chance to share your process, answer their questions and roll back the curtain on your operation.  

 4. Follow Up

 As you may have heard, the money is in the follow up. The best habit you can develop is to follow through on the commitments you make durring the meeting. If you tell them you will send them an email containing certain information, send it to them. It does you no good to nail the meeting and then fail to follow through. One common way to follow up is to send a recap of your time together as well as any other information you discuss immediately following your meeting. This establishes trust and sets us up for a successful relationship. 

Clients meetings are often some of your biggest opportunities. Respect their time by doing them well. You just might find that some of your best meetings yield not only some of your best clients but some of your best friends in the process. 

Developing a "Stop Doing" List

Most lead lives full of activity and lacking discipline. "To do" lists are overwhelming and ever growing. They are filled with wasteful activities, "we just have to do", that drain us of energy, steal our time and keep us from chasing truly great opportunities. 

Enter the idea of the "Stop Doing" list. 

A "stop doing" list in its most basic form is a list of the things that you and / or your team are going to stop doing.  

The solution to your crazy schedule and consequently a crazy task list isn't just another list but the process of evaluating exactly what you are doing each day. A "stop doing" list helps you take a cold hard look at what you are doing and literally stop doing those things that are not the most fruitful for you and your team.  

Like much of life, the power is in the process. 

How do you determine which activities are worth doing? Putting together a "stop doing" list begins by taking a hard look at your task list and asking yourself a series of questions.

1. What is the purpose of this task? It is always helpful to begin with the end in mind. To ask yourself the five year old's favorite question, why? Why is this item even on your "to do" list? What was it's origional purpose? Why are you doing each particular task? Purpose matters especially when it comes to the tasks that cosume your time. If the ultimate purpose of a task isn't worth the time, energy and resources it consumes ditch it. 

2. What outcomes does this task produce? Every task you perform produces an outcome. What is the result of doing each item on your list? What fuit does it produce? Make note of the outcomes your work produces. If what you are doing isn't producing good results that are helping you achieve your goals, it is probably something wasting your time.    

3. If I did not already do this, would I do it? Thinking about starting over often helps provide clarity. There are any number of things you do each day that were once great and needed items but whose time has passed. Honestly evaluate each and every item as if it were a new idea even if you've been doing it for years. Just because its the way things have always been done isn't a good enough reason to keep something on your to do list. You have too much going on for wasteful tasks born of tradition.  

4. Does it fall in my area of strength? Focus on what you do best. A stop doing list allows you to focus on your strengths. Stop doing things you're not best equipped to do. Chances are that even if the task is worth doing, someone else around you might be better suited to perform it.