Become more productive by using the 80/20 Rule (Pareto Principle)
- This principle states that in any situation 20% of the inputs or activities are responsible for 80% of the outputs or results.
- Principle was named after an Italian economist Wilfredo Pareto
- He observed that 20% of the pea pods generated 80% of the healthy peas in his garden.
- This observation led him to discover that 80% of the land in Italy was owned by 20% of the population.
We can see this everywhere in our daily lives
- You wear 20% of your clothes 80% of the time.
- In a book, 20% of the pages contain 80% of the most important information.
- 20% of the company’s customers produce 80% of the company’s revenue.
The inverse is also true. That means that the other 80% is only generating 20% of the results.
- This is not a universal law and it can differ in many situations.
- It could be 70/30, 90/10, 99/1, etc.
- The point is that the majority of results come from a minority of causes, and that the minority of results come from the majority of causes.
How can you use it everyday life? The Pareto Principle allows you to do more by doing less.
- 80% of a book will only give you 20% of its value.
- If it takes you 10 hours to read 100% of that book. By the Pareto principle, you know that 80% of the most important information can be found in just two hours.
- You can delve deep to learn more if you want to, but would likely have to spend the extra 8 hours for the extra 20% of the information.
- It up to you to decide if you think it is worth it.
- In school, you can get a good grade by identifying which 20% of the content you are studying in class is the most important.
- Studying the right topic for two hours will get you a much better grade than studying the wrong topic for a whole week.
- 20% of your friends give you 80% of the fulfillment and joy that you get from social interactions. The other 80% of your so called “friends” are only giving you 20% fulfillment (joy).
- You don’t have to cut away all those friendships completely, but you don’t have to spend an equal amount of time with all of your companions.
- It’s much better to have a few close friends than to have a bunch of really distant friends.
- This is why you should spend the most time on the 20% that give you the most satisfaction.
Re-source: Refocus
Time is our most precious resource. We have the same amount of time in our day, but most of us do not use that time efficiently.
- There is a difference between being busy and being productive.
- Most people think that working the most hours will get you the most results
- However, it is not the time you put in, but about how well you spend that time
This 80/20 can be applied to almost any area of your life (business or free time).
- If you can identify the 20% that produces the greatest outcome, you can spend more time doing to create an even greater pay off.
- It also helps to cut back on the 80% of the things that waste your time that only create 20% of the results.
- It encourages you to think efficiently and focus on what is actually important.
So think about what are some things that you can double down on and which ones you should eliminate?
craving and resource from “Better than Yesterday” – The Pareto Principle – 80/20 Rule – Do more by doing Less