80/20

It's not possible to manage time, however it is possible to manage the way we work with it. We love this quote by Dr Neal Houston, which effectively illustrates this..

“Imagine there is a bank account that credits your account each morning with $86,400. It carries over no balance from day to day. Every evening the bank deletes whatever part of the balance you failed to use during the day. What would you do? Draw out every cent of course? Each of us has such a bank. Its name is time. Every morning, it credits you with 86,400 seconds. Every night it writes off as lost, whatever of this you have failed to invest to a good purpose. It carries over no balance. It allows no overdraft. Each day it opens a new account or you. Each night it burns the remains of the day. If you fail to use the day’s deposits, the loss is yours. There is no drawing against ‘tomorrow’. You must live in the present on today’s deposits. Invest it so as to get from it the utmost in health, happiness and success. The clock is running. Make the most of today.”

So, if we consider the 80/20 rule where:

·        20% of your time provides 80% of your results - means 80% of your time is effectually ineffective

·        20% of your customers represent 80% of your sales - means 80% of your time spent with clients is not highly profitable

Vilfredo Pareto discovered the 80/20 law when he first observed that 80% of the land in Italy was owned by 20% of the population. As he surveyed other countries, he noted that global wealth distribution was very uneven, with the richest of the worlds population controlling 82.7% of the worlds income. (Wikipedia)

Pareto noted that this law applied to many aspects, in a nutshell can be applied to all aspects of life and business. Applying this rule, provides the ability to maximize human output, maximize value and amplify profits.

With the 80/20 law and effective use of time in mind, I shall leave you to ponder the following questions:

a.      do you take measurements within your business?

b.      are they effective measurements which provide you with effective data?

c.       and do you utilize this data?

d.       do you have an Active Business Strategy?

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