How to use the Pareto principle to start a business or find a solution to the problems in the company?
Written by Lifeline on 13th March 2019
All most every field of life Pareto principle has its relevance and significant importance, many businesses run successfully under the influence of this marvelous principle. As we know the Pareto principle is 80-20 rule which works to deliver maximum output at minimum input.
- Collection of data
- Classification of data by categories
- Determine the percentage of the total and rank them in descending order
If you follow our approach well, you will get a diagram at the end of the page that identifies the problems according to their importance, and then you will be able to identify the priorities for the treatment of the problem. In practical terms, the diagram that responds to Pareto’s law highlights the 20% of causes that need to be addressed to resolve 80% of the problem.
Any leader is always looking for performance, and proactively, for this, he needs to organize his life, which is necessary to know how to manage his time. Following are few tips inspired by Pareto’s Law.
- Plan, Act, Evaluate, and React:
- Plan: Think about setting your goals for each day, this is the first exercise
- Act: Once the goal is known, do not wait, take action
- Evaluate: Measure and evaluate the result obtained
- React: And after redoing the same thing, give yourself new challenges
- Identify the priority of the priorities:
Think of your little diagram: distinguish among your tasks those that are urgent and important. It will obviously sort and eliminate those which waste your time and effort. Then, give an order of priority, classify, taking into account these small bricks which allow building great walls.
- Set milestones:
Set a medium and long term goal. What are the benefits and expected results? This will help you to define the interest and order of the tasks to be done, to define a plan of action on one – and only one! – Paper or digital diary .establish a chronology of tasks set deadlines according to the overall time available.
- Delegate, share:
Delegate work to your employees wisely, tasks that are beyond you and require only supervision. For that, a good evaluation of yourself and your colleagues is essential. It is also important to know how to communicate effectively. Organize with your co-workers to split the tasks, one answering the phone while the other person writes his mail. By rendering services mutually, you will strengthen your team spirit and everyone will gain in productivity.
- Dare to say “No”:
Dare to say NO to work that does not fit your goals. Do not be distracted by all the external factors that can affect your performance: unwanted phone calls, meetings too long, time lost in transport.
- Only one thing at a time:
To achieve outstanding performance in one thing always concentrate one thing at a time. The human brain is not made to handle multiple tasks at the same time. Whenever possible, be sure not to do two things at once. “Running two hares at the same time is the surest way to catch none,” says the proverb.