The Pareto Principle - our secret to being effective
at this point in the course, it's really important to make it clear that there is a difference between being efficient and being effective. You can be extremely efficient at the task. But if it's a meaningless task like say ironing socks, then it doesn't make you any more effective at doing your laundry. In order to be both efficient and effective. We need to understand which elements of the priority or task actually contribute to the quality or desirability of the outcome right to that end. Here's another great tip that I owe to tim Ferriss if you've already read some of his work or are familiar with this particular principle, I apologize for the repetition, but it's important enough to deserve a review. Tim is a big believer in something called the Pareto principle Or more commonly known as the 80 20 rule. The rule is named after an italian economist, Alfredo Peredo In 1906 observed that 80% of the land in Italy was owned by just 20% of the population. He further developed the princi...
ple by observing that 20% of the p pods in his garden contained 80% of the piece. Okay, that's probably not very interesting. But the applications of the 80 20 rule and the 10 rule that was born out of it are really important. For example, In my former business, I did a little bit of analysis and I realized that 80% of my customers gave me only 20% of my revenues By focusing on the other 20% of my customers, which gave me 80% of my revenues. I was able to be much more effective in my goal to grow a business and to turn a healthy profit. As a side note, I also realized that 20% of my customers are less, gave me 80% or more of the headaches and I was sure to recommend that those customers check out my competitors website Paradas law has a limitless number of applications, but here are a few to think about Roughly 20% of the words in most languages make up 80% of conversations start by learning those words Roughly 20% of the work of cooking makes 80% of the difference and how tasty the food is. So why do the other 80% of the work? Probably 80% of the news articles you read only give you about 20% of the new information. So why waste your time reading those extra articles? Probably less than 20% of the people you would call friends or family make up 80% of your happiness, support and enjoyment. So focus your time and attention on those people. In fact, I bet that 20% of the tips I give you in this course will make up 80% of the value you extract from it personally. But that doesn't mean you should start skipping sections. This one point is the principle behind most of tim Ferriss success in business writing investing and learning new skills. He's a master of deconstructing a subject and figuring out what he calls the minimum effective dose for success. While you can view this as doing the bare minimum and it's certainly not appropriate for everything. It can have massive implications on how effective you are and subsequently how efficient So your homework, if you can call it that is to start viewing the world through the lens of 80 20 when you catch yourself sitting through a boring meeting or writing an email, I want you to think If I could remove 80% of this, what parts would remain that we can't always do this, especially with meetings. It's good to practice and start thinking in this way and it will help us a lot when we take a big machete to our workflows.