Fundamentals of Less Doing: Doing What Matters (The 80/20 Rule)

Fundamentals of Less Doing is a series of articles detailing how we think about productivity from a conceptual level. If you are new to Less Doing, the Fundamentals series is a great place to start.

Pareto-principle

Take a moment to think about your day. Think about what you did. Now, think about what you actually accomplished. Are you satisfied with what you accomplished? More importantly, did the “things you did” contribute significantly to that accomplishment? Did they contribute to your overall goals for your job? For your business? For yourself?

I’m going to guess that for most of you, that the answer to both of those questions is that most of the “things you did” did not contribute toward your goals.

One of my favorite sections of Tim Ferriss‘s 4-Hour Workweek is his description of Pareto’s Law. On page 69 Tim says, “Pareto’s Law can be summarized as follows: 80% of the outputs result from 20% of the inputs.” He then goes on to list alternative phrasings:

  • 80% of the consequences flow from 20% of the causes.
  • 80% of the results come from 20% of the effort and time.
  • 80% of company profits come from 20% of the products and customers.
  • 80% of all stock market gains are realized by 20% of the investors and 20% of an individual portfolio.

The concept is pretty simple–some actions have a greater return than others. Knowing that, you should focus on identifying the items with the highest ratio of work to return.

Is one of your product lines not performing, and you are spending the same amount of time supporting this product line as the ones that do perform? Drop it. Do you have any small clients that drive you crazy? Drop them.

We only have so much time, and if you want to be successful without spending all day working, then you have to learn to work smarter. A huge part of this is focusing on the items that have a large return.

We’re Still Learning

I actually had to remind Ari of this recently when he sent me an “automation challenge” (something he does on a semi-regular basis) asking if I could help him find a solution to automate the combining of PDFs of his monthly bank statements into a single PDF for each account. Currently, he does this manually every month.

I told Ari, that I thought there were solutions that could do this on Mac (he’s a PC guy which is definitely not efficient), but more importantly, why over-engineer a solution? Why did he need to combine these PDFs into a single file? Why not just standardize a naming format for each of them and save them in the directory? If he needs to search all of them, he can just open them all at once. Even better, why not just hook your bank accounts into Mint.com?

You see, Ari and I often find ourselves trying to find ways to automate things that have an alternative simpler solution. Occasionally, we’ll find ourselves wasting hours looking for solutions to things that really do not matter that much. If you ever catch us doing this, please smack us.

If You Only Walk Away with One Thing

Remember that certain actions have a greater impact and better potential outcome than other actions. Use this to filter your to do list as you think about what to do next, and more importantly, use this to create your list, thinking ahead about what can create the greatest impact.

P.S.

Ari’s response when I told him that he was trying to over-engineer was, “You know what. That’s a damn good point.”