3 Tips on How To Be One Of The Vital Few. The Law of the Vital Few 80/20 Rule
In any given group from any industry, the highest-paid and most highly recognized people are those who consistently outperform their peers. To these victors go the lion’s share of the reward. This phenomenon is known as the Law of the Vital Few or the Pareto Principle. But what makes these Vital Few so successful while the rest of the group can barely achieve mediocrity? The thing that truly separates these people from the crowd is an unwavering dedication to making the maximum results for the amount of time and effort invested in their endeavors. This is recognized in our society as a commitment to excellence.
There is no magic or innate talent to be one of The Vital Few.
It is not an exclusive club, and the essentials can be learned by anyone who wants to be excessively rewarded for their efforts. You are probably wondering about fairness to one’s fellow man, but we are pleased to tell you that this system is perfectly fair. Everyone has a choice to have, to do, or to be anything that they want. The real question is whether or not they will decide to take the action necessary to achieve their desired outcomes. This speaks volumes about an individual’s motivation and has nothing to do with the question of fairness.
What are the common characteristic shared by the most successful business people?
They execute the fundamentals of the business effectively by getting the maximum results out of the time and effort spent at a task.
1.Prospect new clients or vendors,
2.Control inventory and
3.Leverage their time—and so must you!
Use the Pareto Principle (80/20 Rule) for Maximum Results
The Pareto Principal (which is also known as The 80/20 Rule or the Law of the Vital Few) was named after the Italian economist Vilfredo Pareto, who observed at the turn of the 19th century that 80% of Italy’s property wealth was held by just 20% of the country’s population. But the man responsible for further refining this idea in respect to the arena of commerce was the great business thinker, Dr. Joseph Juran, who named this principle after Pareto. Dr. Juran suggested that most outcomes of any given situation are the result of only a few causes.
The Pareto Principle states that 20% of actions account for 80% of the outcomes in any phenomena. The value of this principle to you and your commercial real estate business is this: your focus should be on the 20% of the actions that really matter. This does not mean that the other 80% can be ignored entirely. It simply means that you must choose to put most of your attention on the top 20% of all activities that will yield you the most results in your business.
Most business owners misallocate their time to the 80%, those lowest yielding activities in their business, instead of focusing more closely on the productive 20%. Conversely, the most successful business owners, The Vital Few, focus their efforts on the top 20% and delegate the other 80%of lower-yielding activities to others on their team.
Some argue that the 80/20 rule should really be the 90/10 rule (10% of cases result in 90% of outcomes) or the 80/10/10 rule, in which case, 10%of causes yield 80% of outcomes, and the remaining 10% of causes yield no measurable outcomes whatsoever. The percentages are purely conceptual and may differ, as long as the total equals 100%.