The Power of the Pareto Principle

- Using the 80-20 rule to make the most of your day

The Pareto Principle, or 80-20 rule as it's also known, is based on the observation that, in life, the minority of causes, inputs or efforts produce the majority of effects, results, or rewards. Basically, the universe is wonky!

In 1906 an Italian economist, Vilfredo Pareto, discovered that 20% of the Italian population owned 80% of the nation’s wealth. Further studies revealed that The Pareto Principle, as it became known, affects us all in every aspect of life.

This has real value in every aspect of your life and work. If you can identify which efforts get the best results, you can apply your time and focus far more effectively.

In other words, you do more of what actually matters, as the time management matrix explains.

For example…

• 20% of your tasks produce 80% of your results.
• 20% of a meeting gives you 80% of the information.
• 20% of your contribution produces 80% of the recognition you get.
• 20% of clients create 80% of your sales.
• 20% of the clothes in your wardrobe are worn 80% of the time!

It’s important to remember that the 80-20 'rule' is actually a principle – it can be 80-20, but it’s not set in stone - it doesn’t have to total 100. For example, a teacher may have a class where 99% of discipline issues are created by 10% of students.

In your personal and professional life you’ll increasingly recognize this principle. Use it if you want to know how to prioritize work.

How do you benefit from using The Pareto Principle?

• You create more balance – The principle reveals the way it really is. What, or who, is getting too much, or too little, of your time and attention? Are the 20% of people who create 80% of the value overlooked? They may be if they don't make as much 'noise' as the 80% who only produce 20%.

  Use the Pareto Principle to re-address the balance.

• You become more efficient - Applying 80-20 thinking means you do more of what works and less of what doesn’t. Learn how to prioritize work to identify, and then focus on, the ‘vital few’ for maximum benefit.

  For example, in which 20% of your space do you spend 80% of your time? Focus on making that space a pleasure to live and work in.

• You're much more effective – Just starting a task or project is the most effective thing you can do - see the diagram below. As time goes on, you reach a point of diminishing returns in terms of results for your efforts.

Understand the 80-20 rule and you can decide if it’s worth continuing to achieve 100%. Often, though, 80% is ‘good enough’. As you practice it more, you'll achieve an increasingly accurate idea of how much time and effort to apply. This makes overcoming perfectionism more viable in any situation.

By the way, understanding the 80-20 rule is one thing, but effectively applying it is another. Doing so can be greatly enhanced with the help of an unbiased outsider, such as someone who specializes in personal or executive coaching.

Remember that it's a rule of thumb, not a hard and fast law. Sometimes 100% is necessary to take 'good' to 'great'. To produce top quality or to achieve completion, you need to go the extra mile. It may be true that 80% of a road is built in 20% of the time, but the lines still need to be painted.

Related Articles:

• Time Management Exercise - Do this each day. It's worth it...

• Using the 80-20 Rule at work - Doing what matters.

• Overcoming Perfectionism - When is 'good enough' good enough?

• Return from The Pareto Principle to Effective Time Management Tips and Techniques

• Back to the top of The Pareto Principle