This content has been automatically translated from Ukrainian.
Pareto Law (Rule 80/20) is the principle that in many areas 20% of efforts give 80% of results. It was formulated by the Italian economist Wilfredo Pareto at the end of the 19th century, when he noticed that 20% of people in the country owned 80% of the land. Later, this principle was discovered in business, education, management and even in everyday life.
Where applicable:
- in business, 20% of customers bring 80% profit
- in education, 20% of topics provide 80% of correct answers
- in everyday life, we wear 20% of things 80% of the time
- in time management, 20% of tasks give 80% of the result
How to apply in practice:
- determine the most important tasks and work on them first
- focus on those clients or projects that give the greatest return
- give up cases that take a lot of time, but do not give a noticeable result
The essence of Pareto's law is that most results are often achieved through a small but key part of the effort. By finding and using your «20%», you can become more efficient in any field.
It is important to understand that the numbers 80/20 are not accurate mathematical indicators. This is not the law of physics, where the same result should always be obtained. In real life, the ratio can be different: 70/30, 90/10 or even 95/5. The bottom line is that a small part of the effort or resources usually brings most of the result.
Therefore, the Pareto rule should be perceived as a concept that helps to look at your affairs from a different angle. It does not dictate exact numbers, but only tells where to look for key "20%" to improve efficiency. It is more a way of thinking than a strict calculation.
This post doesn't have any additions from the author yet.
