October 27th, 2011 by databot
A couple of weeks ago I began listening to the 4 Hour Work Week via Audible. Now I know what you are thinking: this explains a lot! Hear me out though, I know the book sounds quite gimicky and in many ways it is, but there are some really great nuggets of truth if you know what to look for. The two aspects I wanted to share with you today are Pareto’s Principle aka the ’80/20 Rule’ and the lesser known Parkinson’s Law (this has nothing to do with Parkinson’s disease FYI).
This is so true, have you ever looked at your data on the products you sell or the customers you sell to?
The basic principal of the 80/20 rule is to limit tasks to the important 20% to shorten work time and maximize ROI. For RPMWare Clients, this means focusing marketing efforts more heavily on what you’re selling: specific part #s, specific brands or specific range of products.
“A task will swell in perceived complexity in relation to the time allotted to complete”. Parkinson’s law states that “work expands so as to fill the time available for its completion.”
Think of it like this; the more time you have to complete a task, the more time it occupies and the bigger it becomes. The perfect analogy is the term paper you put off until the last minute. Remember how well you focused and executed on it?
The goal of Parkinson’s Law is to shorten work time to limit tasks to the important.
Basically we see an inverse of the Pareto’s Principal. By combining them you can create not only an extremely efficient way to work but a much more profitable and anxiety free way as well.
So the goal would be to use Pareto’s Principal to determine the most profitable sectors of your business, then implement Parkinson’s Law to tightly focus on just those aspects. The combination will allow you be more efficient and more profitable while tightening the speed and efficiency of those tasks.
Would love some feedback from you guys after you try this!
Looking for more info? Here are some links that dive a bit deeper into Pareto’s Principle and Parkinson’s Law: