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Six Personal Perspectives Step Two: Commit to the 80/20 Principle

We’re natural helpers. We want to fix problems. We have this inherent need to be the solution finders for ourselves and to our people. It is so important that we learn how to stay our own course and keep our own oxygen masks on so we can best serve our clients, our loved ones, and ourselves.  How do we do that if we aren’t practiced in the art of identifying our priorities, especially if we still feel like we don’t yet know what we don’t know? I’d like to talk to you about this today. 

What Are The Six Personal Perspectives: 

This was a concept discovered by Gary Keller while he was writing The Millionaire Real Estate Agent book. High achievers consistently demonstrate a mastery of these six perspectives, and it is up to any new real estate professional to commit to these:
 
Step 1:  Commit to “Self Mastery”
Step 2:  Commit to the 80/20 Principle
Step 3:  Move From “E” to “P”
Step 4:  Make Being “Learning Based” the Foundation of Your Action Plan
Step 5:  Remove Your “Limiting Beliefs”
Step 6:  Be Accountable
 

Let’s discuss Step 2 today: Commit to the 80/20 Rule. 

The Pareto Principle, also known as the 80/20 rule, suggests that roughly 80% of results come from 20% of causes. It’s a concept commonly used in various fields, indicating that a minority of inputs often lead to a majority of outputs.

The 80/20 principle can be found in various industries:

  1. Business: In business, approximately 80% of sales often come from 20% of customers, or 80% of profits come from 20% of products or services.
  2. Time Management: People often find that 80% of their productivity comes from 20% of their time spent on tasks, highlighting the importance of prioritization.
  3. Software Development: Roughly 80% of software errors or bugs are caused by 20% of the code, emphasizing the need for efficient debugging and quality assurance processes.
  4. Finance: In finance, around 80% of wealth is often held by 20% of the population, as observed in income distribution patterns.
  5. Manufacturing: In manufacturing, it’s common to find that 80% of defects are caused by 20% of production issues, highlighting the importance of identifying and addressing key problems.
  6. Marketing: In marketing, roughly 80% of sales may come from 20% of advertising efforts or channels, indicating the importance of focusing on the most effective marketing strategies.
  7. Customer Service: In customer service, around 80% of complaints may come from 20% of customers, emphasizing the significance of addressing the concerns of key clients.
These examples demonstrate how the 80/20 principle manifests differently across various industries, emphasizing the importance of identifying and focusing on the most impactful factors for achieving desired outcomes.
Why is this important to us as real estate professionals? Great question, let me tell you…
 
We’re self employed. Self employment comes with its own challenges, specifically time and priority management. It’s up to us to decide every single day if we’re going to get up and grind or if we are going to post up on the couch with a pint of ice cream in our fuzzy slippers and watch Ted Lasso reruns. Identifying the most important 20% of our business to focus on helps us laser in on what will push us forward faster and with less clutter. 
We’re self motivated. We have the autonomy to build as far as our imaginations can take us, and many entrepreneurs experience infrequent or maybe even frequent motivation doldrums. Having a clear understanding of the most important tasks and goals ahead of us helps us stay centered in our business and it helps us make consistent progress as our businesses grow. 
 

Good talk, Lins.
I’m new here. What is my 20%?

Happy to help, my friends. As I always say, this part is simple, it’s not always easy. Here’s a brief list of a real estate agent’s top 20%:
 
  • Lead Generate
  • Lead Follow-up
  • Go on Appointments
  • Service Clients

If a new agent can identify these priorities now and make it a practice to do these things before everything else, they will no doubt find success and scalability. 

Scaling Up

There will likely come a time when an agent finds themselves with too much on their plate and an inability to stay on top of all of the things they need to manage. If that’s the case, they’re going to want to first focus on their top 20% activities, and then identify leverage opportunities. Leverage will come in the form of one of the following: 

  • Person
  • Tool/System
  • Technology

Either the agent will need to bring on a new hire to offset the 80% burden, or they’ll need to introduce a new level of systems, tools, or tech to maintain or grow their business. This ceiling of growth is sometimes painful and the breakthrough is one of the more beautiful things a coach like me gets to witness every day as agents crack their own codes. 

If you’d like to learn more about identifying your own priorities, I strongly suggest you pick up a copy of The One Thing  by Jay Papasan and Gary Keller. Extra credit, start or continue listening to The One Thing Podcast. 

 
 
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About the Author

Linsey Frawley

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