Pareto Principle
What is it?
Pareto Principle is a tool that helps you prioritize tasks by focusing on the 20% of tasks that give you 80% of the results.
The Pareto Principle, also known as the 80/20 rule, is a concept that states that roughly 80% of the effects come from 20% of the causes. In other words, a small proportion of inputs or efforts can lead to a large proportion of the results or outcomes. This principle was named after the Italian economist Vilfredo Pareto, who observed that 80% of the land in Italy was owned by 20% of the population.
Here are some simple examples to explain the Pareto Principle in layman's terms:
In a business context: A company may find that 80% of its revenue comes from 20% of its customers. By identifying and focusing on that 20% of customers, the company can maximize its efforts to cater to their needs and maintain a strong relationship, ultimately boosting profits.
In personal productivity: You might notice that 80% of the tasks you complete in a day come from 20% of your to-do list. By focusing on the most important tasks (the top 20%), you can significantly increase your productivity and achieve better results in less time.
In your wardrobe: You may wear 20% of your clothes 80% of the time. If you declutter your wardrobe and focus on the most versatile and well-fitting items (the 20% you w ...