Metamorphosis Consulting, Inc.

Management Consulting Firm

Business Management – Mastering the Pareto Principal

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The Pareto Principal can be loosely defined as an approach to human behavior that concludes that 80% of a person’s success in every part of their life comes from just 20% of their activities each day. Under the Pareto Principal, it can also be argued that the reverse is true. In other words, 80% of the time you spend each day, or activities you’re involved in, lead to only 20% of your success.

The key to being successful, and even happiness, is to avoid the activities that don’t produce much. Instead, focus just as much of your energy and efforts on the highly productive activities.

Let’s apply the Pareto Principal to your business. The primary objective for professionals in business, even those that love their job, is to generate income and provide financial security. You may not be able to buy happiness but financial security most certainly contributes to happiness. Every day, you should use spaced repetition to condition your mind to focus on the 20% activities that allow you to reach your goals. It’s also important to prioritize those activities by asking yourself the questions listed below in the order of importance given.

  1. “Did I have a closing today?”   *YES   *NO
  2. “Did I work on any pending contracts today?”   *YES   *NO
  3. “Did I negotiate any contracts today?”   *YES   *NO
  4. “Did I secure any new listings today?”   *YES   *NO
  5. “Did I have any appointments with buyers?”   *YES   *NO
  6. “Did I have any appointments with sellers?”   *YES   *NO
  7. “Did I prospect with buyers and sellers today?”   *YES   *NO
    1. “Did I make 10 face-to-face contacts including appointments today?”   *YES   *NO
    2. “Did I make 10 prospecting phone calls today?”   *YES   *NO
    3. “Did I send personal notes to 10 prospects today?”   *YES   *NO
    4. “Did I do a mass mailing or direct mail campaign?”   *YES   *NO
    5. “Did I do a mass email?”   *YES   *NO

If you track your performance every day by asking yourself the above questions, you will develop a rain-making habit. By using the same questions to plan for the coming day, your business will grow exponentially, to the point where you can’t handle it all. It’s all about tracking, planning and prioritizing. And, that my friends, is the last word!