Years ago, an italian economist by the name of Pareto came up with a rule that is now known as the 80/20 rule. 80% of our results come from 20% of our actions.
In nature, this law is seen throughout the natural world and especially in business.
80% of the results come from 20% of the actions. This ratio can become even more skewed with higher and higher ratios.
We have 80/20, 90/10, 95/5 and 99/1.
In the media recently, the Pareto principal has become popular because perceived “class warfare” between the have’s and the have-not’s. The big controversy in the USA right now is over the 1% of Americans who control 99% of the wealth.
Regardless of your political affiliation, or philosophy; the Pareto principal is fascinating in that a small number of people or actions can control a VAST number of results, resources or people.
But what separates a person in the 99% from a person in the top 1%?
The people in the 99% are focused on TACTICS. Tactics are “how we do things”. It’s also the “doing of our doing”. These people are focused on day to day tasks. They pull levers, push buttons and trade time for money. They are concerned with the HOW of what they do and are technicians of their respective trades.
Tactical thinkers, or tactical minds are people who usually define themselves as a vocation. They can say “I’m a doctor”, “I’m a lawyer”, “I’m a plumber”, “I’m a bus driver”, “I’m a janitor”.
These people think about the TACTICS and techniques of what they do. If a tactical thinker were a chess player, they would be a novice and see only 1-2 moves ahead on the chess board.
The 1% of people at the top of society are focused on STRATEGY. Strategy is the “why we do things”. It’s the thinking that keeps our “doing the same” but changes “what our doing does”. These people are focused on the residual and compounding results of their actions executed over time. They choose to do (or not do) certain tasks and focus on campaigns and missions. These people are the thinkers of society who do NOT trade time for money and are concerned with the WHY of what they do.
These people are the visionaries, the strategists and the leaders of society.
Strategiests and strategical minds are found usually in positions of power, at the heads of organizations. These people drive the boat, steer the ship and keep it from smashing up on the rocks. These people are the people who run our organizations, businesses and governments. These people lead our tribe.
Strategic thinkers are our centres of influence and can wear the mask of a doctor, lawyer or janitor, but they are much more under the surface.
Strategic minds are very rare, and very hard to find. Strategic minds can camouflage themselves and work “behind the scenes” or they can be flamboyant front-men leading the charge. These people understand how the world, people, societies and tribes work.
Strategic minds think about STRATEGY and not TACTICS. In their minds, they are thinking like an advanced chess player – at least 8 moves ahead. Some strategic thinkers are like grandmasters who can think up to 25 moves ahead!
There are 5 parts that make up the strategic mind and usually these types of people excel at all 5 parts to operate on a STRATEGIC and NOT tactical level.
The 5 Parts of the Strategic Wealth Mind:
1/5th MEMORY – Strategic minds pay attention to everything and remember all the details. Big things are made of many small details compounded.
1/5th ATTENTION – Focus is key. You can have all of the resources and brainpower in the world and if your focus is not there and you cannot focus strategically. Many people remain tactical thinkers because of lack of focus.
1/5th SPEED – Speed is paramount to a strategic mind. Strategies and speed of execution become exponentially less valuable if they are not executed quickly. Speed lends to agility of the mind and the next trait…
1/5th FLEXIBILITY – How flexible is your mind? How can you adapt to change? Can your plans change and flex? Can you change your plans on a direct 180 degree turn? How coachable are you? Can you take advice from advisors?
1/5 PROBLEM SOLVING – Strategic minds are problem solvers. They seek out, attract problems and get the largest compensation for solving the largest problems.
Every day I read and listen to strategic minds and work my once-tactical mind to become a young strategic mind. I find that the best thing I can do to develop my thinking is to surround myself with strategic minds through books, audios, seminars, masterminds, and relationships. The #1 thing that has helped me transform into a strategic thinker has been my time with my coaches and mentors. They can truly see 10-15 moves ahead of me where I was only seeing 3 moves ahead.
Surround yourself with strategic minds and you will eventually become strategic in your thinking. That is where the real leverage in society comes from. Become strategic and join the 1% that achieves 99% of the results.
If you’re serious about success you’ll need to apply more principals from this book: http://stefanaarnio.com/selfmadespecial/