I recently reread ‘The 4-Hour Workweek’ by Timothy Ferris and I think it’s a must read for any entrepreneur. I found the first two thirds of the book most useful in particular concepts around ‘Elimination’, ‘Pareto’ and ‘Parkinson’s law’. My bullet point summary of these concepts are as follows:
Elimination – Time Management
Ferris recommends doing away with time management and focusing on achieving the few important things that need to be done every day. Concepts include:
- Being busy is a guise for avoiding the few critical important but uncomfortable actions you need to complete every day.
- Effectiveness – Things that you do that get you closer to your goal.
- Efficiency – Doing the things in the most economical manner. Efficiency does not mean you are effective. 1. Doing something unimportant does not make it important. 2. Requiring lots of time does not make it important. 3. Apply efficiency to the right things in order to be effective.
Eliminate all that is irrelevant and focus on doing what is important.
Pareto / 80-20 Principle
The 80/20 principle states that, for many events, roughly 80% of the effects come from 20% of the causes. Ferris advocates keeping the 20% good and reviewing or removing the 80% bad. For business, the 80/20 principle can be applied to:
- Clients
- Affiliates
- Problems
- Marketing
- Suppliers
- Products
Most things make no difference so it’s important to identify and focus on the important few and ignore the rest. For more information on the Pareto Principle click here
.
Parkinsons Law
Parkinsons Law states that a task will swell in perceived importance and complexity in relation to the time allocated for it’s completion. If you have less time it will result in a focus on completion through execution of the essentials.
- Limit tasks to the important to shorten work time.
- Shorten work time to limit tasks to the important.
So in a business application, identify the few critical tasks that contribute to the most income and schedule them with short and clear deadlines. Don’t let minor tasks distract you! For more information on Parkinsons Law click here. In addition to these concepts, Ferris has a number of useful suggestions on being effective, dealing with time wasters, setting goals and actions, and eliminating irrelevant interruptions in your life. If you think you’ll get value from understanding and implementing these concepts buy the book or hire it from your library. It’s an easy read and rates up there with the E-Myth by Michael E. Gerber.
This is an extremely important principle for everyone to understand and adopt. It is always a small number of factors or variables which make a huge difference to the end result, but unfortunately many people get caught up in the non critical aspects of their tasks. I have seen this many times in the finance world through my experience in chartered accounting, investment banking and the consulting division of my business, Pentagon Data – we assist clients make better financial decisons through our review and advice.
Lance Gordon
Managing Director, Pentagon Data