How to Use the 80/20 Rule for Effective Time Management in Your Business

80 20 rule for time management

Using the 80/20 Rule for Effective Time Management in Your Business – Key Takeaways:

  • The 80/20 rule can be an effective tool for business leaders, owners, and entrepreneurs looking to maximize their limited time.
  • Also known as the Pareto Principle, named after an Italian economist, the 80/20 rule says that 80% of your outputs come from 20% of your efforts.
  • If 20% of your daily activities can be considered ‘high impact’ then the other 80% aren’t as critical.
  • High impact activities are those that are most critical to your business’s bottom line, and a good manager will maximize this 20% of all activities.
  • Lower impact activities are either not as critical or, worse, are not necessary at all. A good manager will MANAGE this 80% of all activities.
  • Implementation steps for using the 80/20 rule in time management starts with a comprehensive list of all business activities. Then each activity should be evaluated for impact.
  • The top 20% of these activities should be allocated the company’s top resources, including personnel, financial resources, and in this case, time.
  • The bottom 80% must be managed, through automation, delegation, new hires, or elimination.