Efficiency, Effectiveness and The 20/80 Rule

Productivity

It is not about getting stuff done. It is rather about getting them done in the most efficient and effective manner possible. This is the gist of productivity.

Efficiency, Effectiveness and Productivity

Efficiency is a core part of productivity. Being efficient is performing in the best manner possible with the least waste of time and effort. Being effective is accomplishing a purpose/ achieving a goal.

Thus, you can be effective but not efficient. This will make you unproductive. Being efficient is accomplishing a goal in the best manner possible.

In the business sense, productivity is pursuing the right goals and accomplishing them with the least waste of time and money (efficiency.)

In the business world, entrepreneurs need efficiency because of the competitive nature of business. Often times it is not the entrepreneur with the best product who wins but rather the one who manages to produce and sale a good product in the most efficient manner possible.

Companies usually demand productivity from their employees. They want them to perform the tasks delegated to them in the most efficient and effective manner possible.

In your life, you only have a few productive hours in a day. Thus, you should make efficient use of your time. Do not just strive to accomplish your goals. In addition, take into account the time and money that it takes to accomplish goals. Make sure that you do more with the time and money that you have. This is what will make you successful.

Productivity Is Finding the Right Balance Between Efficiency and Effectiveness

Step 1: Come Up With the Right Goals

Effectiveness is simply planning and realizing your goals. If you do not plan, you are simply planning to fail. Your goals need to be specific, measurable, attainable, realistic and restricted to a particular period.

Step 2: Work Smart

Efficiency is about working smart. This will involve making maximum utility of technology and delegating responsibilities.

The 20 Percent Rule

Eighty percent of outcomes come from twenty percent of inputs. This is the Pareto principle of productivity. This principle simply means that in life certain activities you carry out (your 20%) account for the majority of your outputs and happiness (your 80%).

Money plays an important role in life. When you have money, your life becomes easier and you enjoy a higher quality of life. From this principle, the majority of the income that you make is determined by 80/20 of your relationships.

Powerful Examples of 80/20 Rule

Just look at the global distribution of wealth. Twenty percent of the population controls more than eighty percent of the wealth. This is simply Pareto principle in work.

1. Most likely only less than twenty percent of your phone calls really help you to grow financially, professionally and personally. Most of the phone calls you make are not that helpful.

2. Look at how you spend your time. You probably spend your time with only twenty percent of your contacts.
3. Your wardrobe is another example. You most likely wear only a small percentage of your clothes.

The Bottom-Line

In simple language, not everything counts in life. Productivity is about separating the necessary from the unnecessary.

Yes, not everything is beneficial. Productivity means doing what adds value to your bottom-line and outsourcing the rest.

You do not have to handle everything. You do not have to make every phone call. You do not have to meet everybody. Choose what counts and outsource the rest.

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