Applying the 80/20 Rule to Daily Tasks

One tried and true time management tool is the simple act of making a daily task list. As elementary as this sounds, list making helps busy people be more productive, experience less stress, and frees them up to focus on business strategy. In observing entrepreneurs and business owners using lists in an effort to increase productivity, I’ve noticed two common problems that they encounter. Applying the 80/20 rule – the theory that 20% of what you do generates 80% of the results – can solve both problems.

Problem #1: Putting too much on the list. My TAB members and executive clients are successful entrepreneurs. They’re full of ideas, energy, and enthusiasm. As such, they often create daily task lists that are unrealistically long. I call this tendency the curse of ambition. At the end of the day, instead of feeling pleased with what they’ve accomplished, they’re disappointed in themselves for not finishing everything. You don’t have to fall into this trap. When you make your list for tomorrow, think in terms of 80/20. Write your list as usual and next to each item jot down the approximate time each task will likely take, padding each estimate by 20%. Then reduce your list by 20% in terms of hours to be spent by prioritizing as outlined in Problem #2.

Problem #2: Failing to prioritize. Sometimes executives accomplish little or nothing from their lists because they spend too much time on “urgent” tasks instead of “important” tasks. As you review your list for the 20% that should drop off (because you know that some tasks will take longer than planned and unexpected issues requiring your attention will inevitably crop up) apply the 80/20 rule. Identify the 20% of tasks that have an 80% chance of improving your profitability. This may be something as simple as placing a phone call to a potential new client or spending an hour reviewing projections for next quarter. The goal is to make sure you’re spending your valuable time on tasks that will deliver bottom line results for your company. What about the items that need to be done but don’t fit this criteria? Delegate.

An effective daily list can increase your productivity by 20% or more. Use a list wisely, focus your time and energy on the 20% of tasks that will grow your business, and watch as your efforts trickle right down to the bottom line.