Productivity

Book Review – The 80/20 Principle

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Key takeaways:
80% is waste, 80% of decisions are idiotic; people/organizations are reluctant to change/stop the 80% waste; 80% of language is from 20% of words (useful to language learning hobbyists like myself).

Happiness:
Money not spent today will compound, happiness not spent today is lost; Do fun things that make yourself happy now; create a list of Happiness islands/unhappiness islands: list top 10 in each category and eliminate the rest.

Time management vs 80/20:
Not the same thing: Time management asks you to do more in less time; 80/20 says don’t do the things you don’t want to. To gain more time for doing the things you enjoy, Eliminate low value activities – just say NO. Low value activities are: things others want you to do, things you don’t enjoy doing, and things no one is interested in. Eliminate unreliable/low quality collaborators.

Work:
Identify yourself as:

Like to workSelf-employedManage others
High need of achievementorganization peopleprofessorsEntrepreneurs/founders
Low need of achievementvolunteerfree-lancersecretary/manager
Types of work-people


High achievement rules:
Specialize in a niche, enjoy the niche, knowledge is power, identify your core customers, identify 80/20, learn from the best, become self-employed early on, employ net-value creators, use outside contractors except for your core skills, exploit capital leverage.
*Outsource everything but your core competencies.
Arbitrage rule: in an organization, 80% of business comes from 20% of employees, these employees are not paid as such, if you want to get paid more, be in business for yourself, and if you can, hire like minded people.
Move. Find excuse to work for the best, they see things differently, spend time differently. Self employ to capture all the value you create.
If your current career/employer allows you to all of this, keeping you happy, continue doing that.


Negotiations:
Have many negotiation points, keep your core points hidden in the other unimportant points; give away the dummy points, people like to win points; use time: last minute demands are more likely to be met, if more time is given, the negotiation is not favorable.

Money:
Easy to get, easy to make more, but, marginal utility of money decreases sharply; Money obeys 80/20; Investing creates wealth due to compounding returns.

You can get the book here: THE 80/20 PRINCIPLE

KPI: Necessary Evil

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What gets measured, gets managed. What gets managed, gets accomplished.

The first sentence comes from someone famous – I think Peter Drucker. The second sentence is what I came up with.

KPI or key performance indicators, are metrics that organizations use to keep their employees on their toes. It also creates, supposedly healthy, competition among coworkers. KPI is a necessary evil. Companies have the growth mindset and KPI is easy to monitor and report to shareholder, who in turn decide to continue buying shares or not.

Employees should learn to live with KPI’s. Stay on top of them and push back of they start to consume your creativity.

The drawback to KPI is that you start to lose sight of the forest for the trees. You are not sharpening the saw. You can not be as creative as you once were.

Like all other things, there is a delicate balance here and companies can’t overlook this fact. Big data and the AI tend mean KPI’s are not going away. We evolve with this and find a balance.

Weighed Scoring

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How do you make important decisions? Seeking advise from others who are more experienced helps. What if you can’t ask anyone else? No worries. You may try making a pros vs cons list, rolling dice, or even flipping a coin. But what if the decision to be made is just too big for a coin flip? Here, a “weighed scoring” system will help.

Pros vs cons assumes that an entry in either column will cancel one in the other column. Not all entries are equally significant. In a weighed scoring system you create buckets and assign a percent factor. All the percent factors in all your buckets add to 100%. Each bucket also has a minimum and maximum score. Let’s say 1 to 5. Do not use zeros. You add up all the buckets by multiplying with the percent factor of that bucket. Do the same for each option. You now have a weighed score that can be used to compare options a lot more systematically.

Let’s run through an example:

I need to decide what university to do my studies in. I have 10 to choose from. I create three buckets with a percent factor assigned: reputation (0.5), cost (0.25), and city (0.25). The three add up to 1 (which is 100%}. I have a minimum score of 1 and a maximum score of 5.

UniversityReputation (0.5)Cost (0.25)City (0.25)Score
U of CityA5113
U of CityB1553
U of CityC3222.5
Weighed Scoring

We seem to have a tie. We can have a closer examination between these two options and reassess them for determine the winner. Sometimes, similar to a coin toss, it’s about eliminating options as much as finding the winner.

I hope you get the idea and utilize this system in some of your more complex situations were a pros vs cons list just doesn’t cut it. This system is used by large organizations and governments to determine who to award projects to. So the system certainly works.

All the best, and remember, stay frosty!

Standard Operating Procedures

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SOP

The Scientific Process

I come from a science background so I am a strong believer in the “scientific process”. You can search for the textbook definition of this term, but this is what it means to me:

The scientific process is an iterative system of solving problems by: understanding the core of the problem, taking notes from previous similar problems, documenting the steps involved, and identifying the underlying principles while arriving to the solution.

A scientist and a person who thinks scientifically are not necessarily the same person. The latter would find ways to apply the scientific process in the real world day to day life.

Algorithms

Organisms are algorithms.

-Yuval Noah Harari

An algorithm is a shortcut of accomplishing a task without having to re-discover the process again. The process is iterative and the algorithm is a “living document” – constantly evolving.

Systems vs. Goals

Everyone has a goal, and most people accomplish their goals. But the real smart cookies think in terms of systems, not goals. A goal is something you accomplish and it is gone. But a system is long lasting. It helps you be more efficient by automating the thinking process – which is the most time consuming part. As discussed so far, a system is meant to be iterative and over time evolves into a beautiful process – a well oiled machine that runs smoothly.

Standard Operating Procedures (SOP)

Now I get to the main point of this article: what is an SOP and how it will help me develop my algorithms or systems?

An SOP document is used in a science laboratory as a recipe to operate a specific equipment, or run a specific test. It is a very powerful living document meant to make the operator’s time more valuable and save the company money. This is the “systems thinking” idea vs having a goals mindset. The idea is to automate your life and put the routines to a script. This gives you more time to focus on the big picture and allow you to creatively think of the tasks that matter the most.

So how can I apply this SOP to my daily life? Well it’s quite easy.

Master SOP List

Create a spreadsheet of SOP documents that you need to refer to for daily and routine things. An example of some SOP document ideas are below in Appendix 1.

Keep this “SOP Master List” file in a master folder where you will house all your SOP documents.

SOP Template

Create a Mater Template SOP document. Here are some of the elements that are needed in a SOP:

  • Title must be descriptive to explain what the document is about without having to open the document
  • Purpose section: explains the reason for this SOP and where it is used for
  • Summary of changes: this is a table that lists the changes made to the document, with a date and purpose for the change. This is in reverse chronological order with the most recent change on top. This section can also be at the end of the SOP
  • Table of contents: this is optional – if you use Microsoft Word, there is an option to label each section with a heading, including sub-sections. Then change the view of the document to show “Navigation Pane”. This allows you to display the table of contents on the left side of the page and is clickable to jump to a section – very handy
  • Use tables, diagrams, handwritten or hand drawn items, links to web, etc. Anything that will help you explain to yourself what you are trying to say
  • Referencing other documents: this is important – you will have situations where you want to refer to another SOP or a document. Keep this other document in the same master folder and give it a descriptive title

DNR (Do Not Repeat)

In programming there is a convention for writing good clean code – DNR. Do not repeat code. The same is true in writing SOP documents. Minimalism is beneficial.

Cloud Storage

A practical tip that takes this SOP idea to the next level is to have these SOP documents available on your phone by storing it on the cloud and syncing it to your PC and all other devices. There are numerous cloud storage options out there – I personally use a combination of them for various things. This allows you to view and edit the SOP documents any time on your phone, for example. This is very handy.

Living Document

Finally, remember this SOP is a living document. The system works only if there is a way to constantly evolve and improve. This evolution can be done on the fly as needed, or having a pre-scheduled time slot, example once a year put in the calendar.

The whole experience is quite liberating as now you have created some free time by increasing efficiency.

Have fun!

Appendix 1

Some SOP examples:

  • SOP for morning routine: “insert further explanation here”
  • SOP for cloud storage:
  • SOP for daily goals:
  • SOP for passwords:
  • SOP for investing:
  • SOP for address and phone number changes:
  • SOP for monthly expense tracking:
  • SOP for traveling:

 

Mentor

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Fire was a game changing discovery. Some believe it was actually a gift from the gods to human kind. Regardless, the second person who heard about this new discovery, or witnessed it in person, probably did not think about how they can rediscover it. Instead they probably thought about how they can have some, or steal some.

The point I am trying to make is that do not reinvent things. Find someone who has done what you need to do and seek their help.

Mentors are not that hard to find. For example, you want to start a new bakery business. The best place to start is talk to a successful baker. Ask them about their journey. You would be surprised how approachable mentors are. They probably see themselves in their students so they genuinely want to help out.

But do not bombard your mentors with trivial questions. Research the topic on your own first. Exhaust resources to find answers on your own. Then distill your questions to a handful. Be respectful of your mentor’s time.

After you have found the mentor, got their permission, the bestbway to ask your questions is probably a short email. Keep your emails once a week. Save the responses. You never want your mentor to repeat themselves with a question they already answered.

Finally, remember the generosity of your mentors. When you are in a position to help others, return the favor and keep the mentorship karma going.

Good luck!

Reading Audiobooks

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audiobooks

Almost everyone agrees that reading is one of the most important habits to develop. True. However, for a busy professional or a young college student, there isn’t time during the busy day to dedicate to sitting down and reading.

But, technology today makes it easier than ever before. We have audiobooks. It is about creating a book reading habit – or listening in our case. This is what has worked for me.

  • find out if the book I am about to read is worth my time:
    • this is a big commitment, so I am careful picking my books. I start by watching a summary video on YouTube for the book, this is generally available
  • download the mp3 (or similar) format of the audio-book
  • save it on my phone
  • use an audio-book app: I use “Smart AudioBook Player” for Android, you can use what ever you prefer

Most important is to keep track of what you listen to. I use a spreadsheet for this.

Most-most important is to make some sort of summary notes on the book. I do this on my phone again and save it to the cloud. In general, there are 2-5 really important points the author wants to say. The rest is “fluff”. Making a half-page or less summary of the book helps distill the information down. This comes super handy when in future you want to go back and re-visit the book. You can easily review your own notes.

There isn’t a “best time” for this. I listen throughout the day when I am doing stupid tasks like cooking, cleaning, working out, doing my business in toilet, etc. Commutes are also a great time to listen.

It is about creating a habit of audio-books. This habit pays huge dividends over time and you will start to reap the benefits, guaranteed.

Touch It Once

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touch

Nowadays, we have multiple personal devices and our data in on the cloud. We get multiple pings from notifications on all our devices. We are constantly being interrupted. I believe the best way to stay productive is to avoid redundancy at all cost – touch it once!

Time Blocks

Break your day into strict blocks. Assign specific tasks to be completed within these blocks – nothing else. You will not be interrupted from anything else. All have to wait until you come out of this time block.

Redundancy

We live in a world of “big data”. The worst thing you can do is to duplicate your work. Try to avoid making copies of your work. Before you make a copy, take a step back and ask yourself if this is necessary.

Phone Discipline

You may have heard this before – your phone can be your worst enemy. Manage the notifications and pings you get. These are specifically engineered to build habits so you spend more time on your phone and eventually buy crap. You know the app notifications you can do without, so just turn them off.

 

One example of this principle that I recently though about is WordPress. Before, I used to do my blogging from my laptop only. Requiring me to type on my computer. As I thought about writing about a topic, I had to make a note on my phone, email myself that note, log onto my laptop and then re-type it. This was redundant.

I now use the WordPress app, create graphics with the Canva app, and publish straight from my phone.

Path of Least Resistance

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path of least resistance

In nature, the path of least resistance is always taken. Examples of this are found in:

  • electricity: the circuit with the least resistance is completed first
  • water: the widest pipes flow the most water

When it comes to people, the same is true. People resist change. This is also called the “familiarity bias”. Our mind evolved to play it safe. For ancient hunter-gatherers, the unknown path back home may be patrolled by wolves, so we take the same path back.

But, this familiarity prevents growth. How can you tell if you are becoming complaisant? It’s easy: do you feel resistance? If the answer is yes, then push forward. A lobster – to take another obscure example from nature – needs to change it’s shell several times to allow it to grow.

So be like the lobster and push outwards. When the resistance becomes too much, change into a larger shell.

Optimism

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Optimism

I am a glass half-full type of person. I strongly believe such an attitude can be developed internally. Such a positive outlook on life is contagious. It is one of those things that compounds over time, so the sooner this is developed the better.

Here are some simple habits and reminders that can help on stay optimistic.

Find Your Anchor

anchor.jpg

You anchor is something that grounds you. It is what keeps you real, what keeps you motivated and on course. You truly enjoy doing this. When you accomplish your daily anchor, all is good in the world and nothing can bring you down.

Dwayne Johnson, aka “The Rock”, says his anchor is working out every day. He likes to get up early in the morning – when the things you need to do during the day have not yet started distracting him – and go through his exercise routine.

It doesn’t even have to be some thing physical like exercise, running, swimming, etc. It can be as simple as meditation, journaling, relaxing in the sun, making your bed, whatever. The key is to use this activity as an anchor and truly believe that accomplishing this will mean you will conquer your day.

Protect your anchor.

Be Fearless

Be optimistic about each day, be adventurous, be open to the universe by saying YES. Be fearless – do one thing every day that puts you out of your comfort zone and scares you. Start with small things and work your way up. Develop the courage to ask for things that you would otherwise be shy of. Of course, don’t jump off a bridge.

A couple of awesome short audios you can listen to every morning to help with this:

 

Marcus Aurelius’ morning meditation

Be Prepared

Captain Chris Hadfield, the famous Canadian astronaut, describes the preparations required for every mission and how that has changed his approach to life. He describes this wonderfully in his book.

The idea is to be prepared for the worst but hope for the best. Always have a plan B for every mission.

Know Your Weaknesses

As you will implement some new habits in your daily routine, you will have a feeling of what works and what does not. Be ready to experiment with this. Know your weaknesses and be realistic. Set goals and systems that you can achieve and be able to implement.

The worst thing that can happen is you set a ridiculous goal and never achieve it, get dishearten and lose momentum. Then you need to start from scratch again.

Know what works for you.

Careful with Your Friends

We are the sum average of the 5 people we hang out with. This is a rule. The people you inspire to be will be where you end up. So just be careful who your friends are.

 

A very simple rule to live by is:

“I want to leave the world in a better place than how I found it.”