How to focus on the most important business decisions



'80% of business sales are generated by 20% of all customers' '80% of product sales are generated by 20% of all employees' '80% of work results are spent “ Pareto 's Law (80: 20's law) ” such as “ Twenty percent of the time is created” can be applied to various everyday situations. It states that decision-making in a technology company should also be made with the 80:20 rule, and explains specific points to keep in mind when implementing the 80:20 rule.

How to stay focused on the business decisions that matter most — Quartz at Work

According to Teresa Dietrich, who has been a career at McKinsey and software developers, in his experience at a technology company, “only 20% decisions are important for long-term success, and the remaining 80% are insignificant. He learned from experience the 80:20 law. And in order to use time meaningfully, Dietrich says that a line of what belongs to “80%” and what belongs to “20%” in business choices is necessary.

As a trend of people who love technology, `` I like problem solving '' `` Put time on problem solving '' is seen, but the staff is too enthusiastic about problem solving and the staff gets stuck in depth often. When the problem is '20%' of the 80:20 law, you should allocate time taking into account how complex the problem is and how important it is to the business, but it is basically a solution. It ’s okay. However, if the problem belongs to '80%', you should be careful not to get too deep in the staff and team. Team time and effort should be devoted to the decisions that should be prioritized.



The following two points are important in determining whether a problem belongs to “20%”.

1: Is the problem related to the root of the business? If the technology is lost, staff and clients will not be able to move.

2: Whether the technology is advanced. What teams and staff need to spend a lot of time on advanced configuration and system integration.

The problem that the above two points apply is considered to be “20% decision” which has a big impact on business.

For example, when sending a reminder email to a client, wondering which service should I use? Considering the above two points, you should first conclude, “If the email stops for several hours, will the business be interrupted?”, “If the email is finally delivered to the client even after a few hours delay, it should be concluded.” Email is based on standard protocols and can be easily integrated into other systems. In other words, choosing an email service is not an “20% decision” but an “80% decision”.

On the other hand, when considering the decision of “what service to use as a database to store client data”, “If the database stops, work for the client will stop” “In-house team will not be able to support the client” You should understand that. In addition, although there are several standards for databases, migration between databases is not simple. For this reason, database decisions are “20% decisions”.

The technical team tends to treat many of the decisions given as 'important', so you first need to teach the team how to make decisions using the 80:20 law. If you tell the team that you want to take the time to make a 20% decision, the team will be able to act autonomously and the leader will be confident that the decision has been made appropriately. thing. Non-critical tasks are increasing every day and even the 80:20 rule may even be the 90:10 rule, so Dietrich says that you don't have to worry too much about the remaining unimportant tasks. The

by Bernd Klutsch

In recent years, XaaS, which has made it possible to use resources that were previously used locally, such as cloud services, has appeared online, but setup time for implementing new services in the ecosystem using these technologies And costs were significantly reduced. The wide spread of open source and the emergence of various services show that 80% of the decisions continue to be solved by technology. Make 80% decisions quickly, and if you fail, you can make up for a more hopeful and sustainable model.

Dietrich emphasized that it is important to spend 80% of the time on the remaining 20% of decisions.

in Note, Posted by darkhorse_log