There was an Italian economist by the name of Vilfredo Pareto (see his pic below 😉) who studied the distribution of wealth in his country.
He observed that 80% of the wealth in his country is owned by 20% of the population.
In the later years, management thinker Dr Joseph Juran, called this 80/20 thingy, the Pareto Principle.
What is this 80/20 principle?
or the 80/20 rule?
Well, this a study that a large chunk of the results just comes from the smaller block of the causes.
Yeah, just like saying that 80% of the pollution of the country comes from 20% of the power plants.
Or 80% of the revenue comes from just 20% of the clients. (Hey! why don’t you put more of your efforts on these clients)
Dr Juran, the management thinker that he is, observed that this principle can be applied broadly.
Not for business only
Mind you, this Pareto thing is not confined to businesses alone. You can grab this and put it to work in your life, in your schoolwork, in your family life, in your daily pursuits.
Imagine, eighty percent of your successes will come from twenty percent of the things you do?
Now, think about that. How many tasks you’ll be freed from once you get this.
You’ll get your successes in a short time with minimum effort by following the Pareto Principle.
Now, instead of routinely following, line by line, the tasks in your daily planner, pick out which of those are the 20’s that bring about the 80’s.
Yes, there may be jams and tangles once in a while. You don’t have to do everything perfectly right away. Just start.
Time is your constraint
Since you have a limited amount of time, you should put more of your heavy lifting on the 20%. These activities would create more sizeable results.
If you have ten activities for the day, for example, identify two of these activities that you should put more effort into.
You could spend eighty percent of your time in them and expect to reap large gains.
Sorting out which activities belong to the twenty percent is painstaking work. But hey! The rewards are enormous.
Tuesday, May 20th, 2008 5:20am