The PARETO or 80/20 Rule – we have all heard about it but how many of us actually apply it on both a personal and business level?
We’ve all been exposed to the 80/20 Principle at some point in our lives: The principle states, quite simply, that 20% of efforts lead to 80% of results. Whether you know it as the “Pareto Principle” or the “Principle of Least Effort,” it’s an incredibly powerful concept.
The Pareto Principle took shape in 1897 when Vilfredo Pareto, an Italian economist, was studying wealth and income distribution in 19th Century England. During the course of his studies, he discovered that the majority of land and income was controlled by a minority of the population.
In fact, 20% of the population controlled 80% of the wealth and income.
On further analysis, mythical lore says that he found that this principle held true not only in different countries and different time periods, but also in contexts such as his garden—where he discovered that 20% of his peapods yielded 80% of the peas that were harvested!
Since our pal Vilfredo identified the trend, many researchers have been busy pointing out some additional modern applications.
• 20% of criminals account for 80% of crime
• 20% of motorists account for 80% of accidents
• 20% of married individuals account for 80% of divorces
• 20% of your carpet probably gets 80% of the wear
• 20% of streets account for 80% of the traffic
20% of product flaws account for 80% of problems
• 20% of clients usually account for 80% of profits
I could go on, but I think you get the idea!
80/20 thinking requires, and with practice enables, us to spot the few really important things that are happening and ignore the mass of unimportant things. It teaches us to see the wood for the trees.
Your job is to look around you. See where you spend your time.
See where you get your results.
Is it 50/50 or more like 80/20?
“The 80/20 Principle suggests that your strategy is wrong. If you make most of your money out of a small part of your activity, you should turn your company upside down and concentrate your efforts on multiplying this small part. The trick is to work out which 20 percent is getting you the most results” Richard Koch – The 80/20 Principle
Are you wasting time on activities you KNOW aren’t yielding the results you want? Well, stop!!!
And, find the 20% of stuff that’s working and DO MORE OF IT. Starting now!
Talk to you soon