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Stephen Covey outlines the four quadrants weekly plan to effectively manage tasks by prioritizing based on importance and urgency. Habit number three emphasizes putting first things first, focusing on tasks that are important and urgent to avoid stress. Identifying priorities is crucial to differentiate between tasks that are truly important and those that may seem urgent but are not. The key is to stay focused on tasks that align with long-term goals, rather than getting caught up in the urgency of less important tasks.