Pareto’s 80-20 principle
The 80-20% principle
Find your “critical 20%”
and TRANSFORM your time – and life – FOREVER with
THE 80/20 PRINCIPLE!
The well-verified observation that in business, economics,
and life generally, about 80%percent of all results flow
from a mere 20% percent of our efforts. Sounds hard to believe but it is true. TRY IT.
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto’s Principle. While it may be misnamed, Pareto’s Principle or Pareto’s Law as it is sometimes called, can be a very effective tool to help you manage effectively. Pareto Principle, or the 80/20 Rule.
The principle is that 20 percent of something is always responsible for 80 percent of the results.
The 80/20 Principle states that 80% of results, rewards, or outputs are generated by 20% of causes, efforts, or input.
Business philosophers love to talk about the 80/20 Principle, because it applies so clearly to corporate situations. You’ve probably heard it said that 80% of profit comes from 20% of customers, or that 20% of a company’s staff generates 80% of its productivity.
But the 80/20 Principle is much, much bigger than that. It’s a universal, natural fact, proven over and over again in scientific research. And it’s visible in nearly every imaginable circumstance. For instance, in the wider world, roughly:
* 20% of thieves account for 80% of the value of all crime
* 20% of drivers cause 80% of all car accidents
* 20% of any community’s population utilises 80% of its resources
And if you look at your own personal life, you’ll find that:
20% of the time you spend at work accounts for 80% of what you achieve
20% of your clothes are worn 80% of the time
20% of your home’s carpeting receives 80% of the wear
Well, the real power of the 80/20 Principle – the secret to using it as a tool for massive life transformation – lies in finding, focusing on, and exploiting the most important 20% of your resources in every situation in your life.
I’m not talking about cheating or cutting corners. I’m talking about learning to identify the things that matter most to you and add the most value to your life…shifting the majority of your energy and attention to those things…and disregarding everything else.
WHY HAVEN’T YOU HEARD OF IT?
The reason is, the 80/20 Principle is counter-intuitive. It goes against everything we’ve been raised to believe about the way the world works.
You see, we’ve all been ingrained with 50/50 thinking. We intuitively believe that hard work will bring about equal results. Don’t just “work smart”, work smart on the right things. That cause and effect are equally linked. Wrong
DON’T JUST WORK ‘SMART WORK’ SMART ON THE RIGHT THING
The 80/20 Principle demonstrates that just the opposite is true.
The world is imbalanced.
Everything isn’t fair.
Working really hard doesn’t necessarily mean you’ll be amply rewarded.
And hardly working at all can sometimes make you a multimillionaire.
The biggest factor that stops most people from chasing their dreams and working towards their real goals is fear. Fear of the lack of security, the reduced paycheck and of the unknown future keeps people locked into routines that are not satisfying. That path leads to sadness, depression, poor health, low income and ultimately an early death. And life is short enough as it is, just ask any eighty year old!!!