Pareto
Efficiency
Engine
The Lie: "Hard work pays off."
The Truth: "Smart leverage pays off."
The Pareto Principle states that 80% of consequences come from 20% of causes. In your business, 20% of your tasks generate 80% of your income. The rest is just "busy work" that makes you feel productive but keeps you poor.
The Vital Few vs. The Trivial Many
Vilfredo Pareto discovered this ratio in his garden: 20% of the peapods contained 80% of the peas. He then realized 20% of the people owned 80% of the land.
The Strategy: Use the engine above to calculate the ROI (Return on Investment) of your tasks. High Impact + Low Effort = The Golden Zone. Focus entirely on that. Automate or delete everything else.
System Notes (FAQ)
Can I apply 80/20 to relationships?
Yes. Usually, 20% of your friends provide 80% of your support and joy. Conversely, 20% of people cause 80% of your drama. Audit accordingly.
What is 80/20 Squared?
If you apply the rule to the top 20%, you find that 4% of inputs cause 64% of outputs. This is extreme leverage.
Need to audit your friend group next?
>> RUN THE SOCIAL ROI AUDIT
No comments:
Post a Comment