A technique that has been used in business management for a long time is the categorization of large data into groups. These groups are often marked A, B, and C—hence the name. Activities are ranked upon these general criteria:
A – Tasks that are perceived as being urgent and important,
B – Tasks that are important but not urgent,
C – Tasks that are neither urgent nor important.
Each group is then rank-ordered in priority. To further refine priority, some individuals choose to then force-rank all “B” items as either “A” or “C”. ABC analysis can incorporate more than three groups.
ABC analysis is frequently combined with Pareto analysis.
This is the idea that 80% of tasks can be completed in 20% of the disposable time. The remaining 20% of tasks will take up 80% of the time. This principle is used to sort tasks into two parts. According to this form of Pareto analysis it is recommended that tasks that fall into the first category be assigned a higher priority.
The 80-20-rule can also be applied to increase productivity: it is assumed that 80% of the productivity can be achieved by doing 20% of the tasks. Similarly, 80% of results can be attributed to 20% of activity. If productivity is the aim of time management, then these tasks should be prioritized higher. This view of the Pareto Principle is explored further in The 4-Hour Workweek by Timothy Ferriss.
It depends on the method adopted to complete the task. There is always a simpler and easier way to complete the task. If one uses a complex way, it will be time consuming. So, one should always try to find out the alternate ways to complete each task.