Many of us have heard of the ultimate productivity principle, the Pareto Rule.
▶︎ But how do you actually apply it?
Re: the Pareto Principle?
Originally applied to economics, the Pareto Principle stated 80% of the wealth of a nation was owned by 20% of it’s people.
For the lateral thinker, this principle finds use in all type of matters. For example, one could say, 80% of your money comes from 20% of your clients. Or maybe 20% of your weekly effort yields 80% of your most important results.
According to famed Internet Marketer, Perry Marshall, author of 80/20 Sales and Marketing, one understanding of Pareto, is seeing it as universal inequality.
Things will never be equal.
The ROI over a wide number of things will never be the same.
In fact, the differences of production will likely be great. Often the differences of the best to the average can be more like a 5 to 1 or 10 to 1.
From Lifehack.org: The 80/20 Rule points out the imbalance of effects. Just as one person might have several times the wealth as another, one hour spent on a critical project might be worth $10,000 while another might only be worth $20. The goal when using the 80/20 Rule is to maximize the small and powerful twenty percent and reduce the wasteful eighty percent.
Mastering the pareto principle keeps you on the hunt for what’s most effective.
On the other hand, the Quarterly Clarity Assessment, shows you how to plan your future schedule, based on the remaining 80%.
We can’t just drop the 80%.
We need to decide what to do with each item or block in our schedule.
The pareto principle and clarity assessment are different but very similar as well.
The Pareto Principle breaks your effort into two buckets.
The Quarterly Clarity Assessment groups activities into three categories.
Using the Quarterly Clarity Assessment, my time and energy is broken in three buckets:
✓ One bucket was for growth.
✓ One bucket for maintenance.
✓ One bucket for reduction or eliminatiion.
See this diagram:
These Quarterly Clarity Assessment speaks more to the strategy of future planning.
Similar to the Pareto Principle is the 20% that is most effective.
But the Clarity Assessment categories the remaining 80% for maintenance or elimination.
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