The Law of the Vital few
i.e., 80-20 Rule, Pareto Principal, Principal of Factor Sparsity
All of the above are different names for the same principal that I am sure you have heard of before. The question is “are you using it”? In addition to that, are you using “The Law of the Vital Few” in all facets of your life and business? When I first heard of it, I used it pretty simply and broadly; nevertheless, I now see it in a different more detailed light. Just to make sure we are on the same page, the rule simply states that for a huge array of events, roughly 80% of the effects come from 20% of the causes. An example would be that 80% of your money comes from 20% of your sales people. Also, 20% of your sales people make 80% of the money in your organization, while the other 80% makes 20% of the money. Pretty simple to understand. However, like most knowledge, the concept is easy to understand, but implementing it, takes a little more thought.
Things to ponder and tattoo to the inside of your forehead:
1. Most people probably spend 20% of their time at work creating money or making opportunities and 80% of their time doing stuff that can be delegated to someone else. In addition, if you delegated your non-money making opportunities to someone else, you might find out that they are better at it than you. The only way you will ever find that out is if you let them do it. What would your life be like if you spent 80% of your time doing important stuff that “generates money” and 20% of your time spent doing the less important stuff that’s “energy draining” or getting it delegated to someone else?
2. You are most likely spending 80% of your work time with people that make you 20% of your money. That’s kinda like the “bad” kid of the family that gets more attention from the parents then the “good” kid that is doing great. Thus, this feeds and rewards the wrong activities. Make sure you spend your time helping the “good” ones get better and leave the door open for the “bad” ones to step up if they want to.
3. There is probably a 20% section of your day that you get 80% of your work done. Have you ever wondered how some people achieve more in a day, even though they have the same amount of time that you have? It is in all likelihood, due to the fact that they constantly refining how they spend their time.
4. Your sales people probably spend 80% of their time on admin and lead generation while only spending 20% of their time in front of customers. Imagine if this was reversed?
5. Try and imagine the mileage you can get off of this concept by implementing it into your personal life?
Working “The Law of the Vital Few” on your behalf, instead of against you, is a constant battle that needs continual reinforcements. Remember, it is a work in progress, that needs to be constantly refined and updated to change with the changing scenarios of your life.
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