A fact is: what has been existing for decades is likely to still exist in decades. Pareto’s principle is an excellent tool which has stood the test of time.
When used appropriately, it is a powerful tool. In this post, I will explain how the Pareto principle can change your life.
Definition
Pareto’s principle suggests that 20% of an activity will account for 80% of its results.
The reverse is also true: the remaining 80% of an activity will account for 20% of its results.
This principle was established by Vilfredo Pareto, an economist who asserted unequal relationships between inputs and outputs.
The Pareto principle is also known as the 80/20 Law.
Application in all aspects of your life
Note that this principle is also applicable in your everyday life 😊. In fact, our habits are also governed by the Pareto principle.
For example: my wardrobe is full of clothes. Yet, I will only be wearing 20% of my clothes 80% of the time…
The 80% of the time will be my daily routine. I wear the remaining 80% of my clothes for special occasions – i.e. 20% of the time.
Another example: 80% of my cares are caused by 20% of my entourage.
Business approach
The amazing thing about Pareto’s principle is that it is also applicable to business.
During my last year as a Health & Safety Engineer, I noticed that 22% of my colleagues had been involved in 77% work incident (near-miss or injury).
After my first year as a Quality Engineer, I had noticed that 78% of customer claims were opened by 18% of my employer’s customers…
The same way, 20% of a company’s customers will generate 80% of its turnover.
How can the Pareto principle change your life
The Pareto principle is a decision-making tool. Once you understand how the Pareto principle works, I can only encourage you to revisit every aspect of your life.
Check out the 20% of actions that are gratifying to you. And maximize your effort on those 20%. Focusing on those 20% will enable you to work smartly and therefore release more time for yourself.
Ignoring those 20% is a risk of facing (unwanted) consequences.
This is how the Pareto principle changed my life.
How did the Pareto principle change your life? Tell us by commenting 😊
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