Knowing the Pareto principle lets one advance much faster in particular projects and tasks, as well as in life.
This principle is about having always clarity about which 20 % of a task, have the impact of 80 % of the task. With how view effort and energy can you get most done or out of a task.
Here is the definition:
The Pareto principle is a prediction that 80% of effects come from 20% of causes.
It is also about being clear about what are the most important 20 % of the causes of a task or project to get 80 % of it done.
The Pareto principle recommends to start focusing on and doing the most important 20 % of the tasks that are within a bigger task.
But the Pareto principle is not to be taken too exact. It is just an observation, that many things are highly uneven distributed by themselves, that is recognized throughout many fields and aspects of life. For example: Out of 4 team members, 2 can get done of 100 % of the whole team tasks. 50 % gets 100 % done. Or 1 team member gets 70 % of the 100 % done. The other 3 get each 10 % done.
It is named after Vilfredo Pareto, an Italian economist, who found in 1906, that 80% of the land in Italy was owned by 20% of the population. Interesting about the principle is, that, even though it is just a rule of thumb, it is never the less found in many other different areas of life. Or better; applicable!
Applying this theory in your life or work has the following advantages:
- gets you get the most important tasks done first
- makes you be clear about what is important and what isn’t
- prevents you from spending your energy and time on little tasks that aren’t as important than a just a certain view number of tasks – most people spend their energy and time with the least important 80 % of a bigger task and lose with this a lot of precious time.
- lets you do the less and least important tasks after having done the most important and most results-producing tasks already.
- gives you a greater feeling of productivity, effectivity, relaxedness, and professionality.
- saves you time for other beautiful things in life and to advance faster than most or many of your peers.
It is very used in the business world for the following points and rules of thumb.
Your value production and time spent.
Which 20 % of your actions and time produces 80 % of your value and results in your work or business?
By focusing and spending more time on these 20 % of actions and time, and less on all the other actions and time, you can multiply not your value, but also your worth and income or earnings.
Your top clients or customers and your sales
The other very useful point is to figure out which 20 % of your clients or customers are responsible for 80 % of your sales.
By having them identified and focusing more on their needs and number of them as your clients or customers, you can highly multiply your sales.
But as long as there are enough things in the game, the Pareto principle doesn’t stop.
This means that within the 20 % of your clients or customers that are responsible for 80 % of your sales, there are another 20 % that are responsible for 80 % of the sales within the first top 20 %.
These 20 % are the top overall 4 % responsible for 64 % of your sales.
Like this, you can not only figure out your most profitable type of client or customer but also better improve your service or product. You can also think about how to better satisfy the other 80 % of your clients or customers, so they turn into your first top 20 % of profitable clients or customers.
I like to highlight that the word “profitable” is only used in an economic sense. Every person’s worth is undiscussable.
In terms of fulfillment in life
You can create a list of at least 50 things that you want to do, possess or experience in your life, as Jim Rohn used to challenge his workshop audiences.
Once you’ve done this Mammut first step, you can ask yourself, which 20 %, so 10, are the ones that make you feel most fulfilled, thrilled, full of love or happy or are simply the 10, for one reason or another, that you seriously don’t want to dismiss in this lifetime.
You can apply it even to your day. Which 20 % of the things you had in mind make you feel best at the end of your day when accomplished or done?
Enjoy a little boost of clarity, productivity, progress, clients or customers, income (resultingly), and most importantly of all,
fulfillment and quality of life.
