The 80/20 Rule

 


Pareto’s Law

Recently I stumbled upon Pareto’s Law, also known, as the ‘80/20 Principle, which seems like an answer to my time management issues and leads me towards efficiency and productivity. This principle was discovered when the economist, Vilfredo Pareto realized that 80% of peas in his garden were produced by only 20% of the pea pods he planted. Intrigued, he decided to test this theory and found that it applied to almost every situation around us. For example, 80% of the wealth is possessed by the smaller population, that is, 20%.

Alternative Applications

The 80/20 Rule can be applied to any and everything, such as a company may have 80% of its profits from 20% of its consumers, or 80% of outputs/results are usually a result of 20% of the inputs/time. How amazing is that? This means that we just need to find our strengths and weaknesses and figure out what would make us more efficient.

Analysis

To become more efficient, whether in work or personal life, one needs to carry out an in-depth analysis of what they are doing right or wrong, in order to, find your inefficiencies, eliminate them and focus on your strengths. This may mean, for your business, you should be able to identify your key tasks, which ones give you more return, reduce the number of tasks with less return, plan properly and prioritize what needs your attention, and will bring more value and an increase your ROI. It is important to analyze which 20% of your tasks are the cause of 80% of your problems or time management issues.

The 80/20 rule can be applied to both professional and personal life. You could even ask yourself, which 20% of my relationships bring me 80% of the joy in life.

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