We will be held up with lot of tasks and activities every day and there would be a lot of decision making to be done before prioritizing our daily activities and proceed to do them and if we fail to prioritize our activities based on importance then we fail to get a good benefit out of them. How to solve this problem? You know there is a principle which can help us in prioritizing our activities and focusing on only some amount of work to complete most of the tasks which actually matters to us.
There is no enough to do everything, but there is enough time to do what all are necessary. – Anonymous
In order to make use of the time which we have to do what all are necessary and what really matter to us the most and can give us the most of the things which we actually want.
The Pareto and about his principle
Vilfredo Pareto was an economist and when he was pursuing his university education he has submitted his first paper after surveying about the Land & Ownership pattern in Italy and he has noted a pattern in the ownership which truly appeared to all the industries and moreover to everything if it is applied properly to the Cause & effect.
Let me explain you what is meant by cause & effect here, Cause is the first activity which we perform / estimate / calculate and the effect is the result / solution / answer to our previous cause. Coming to the actual law of Pareto – 80% of land in Italy was owned by just 20% of the population.
The figures 80 & 20 are the key points in his law and those figures were true in most of the cause and effect scenarios say –
- 80% of the wealth in an industry is earned by only 20% of the top people and the rest 80% have to be satisfied by 20%.
- 80% of your happiness is due to just 20% of activities you do.
- 80% of a company’s profit is obtained from only top 20 % of customers.
- 80% of your time is spent on only doing 20% of daily activities.
- 80% of your success depends on only doing 20% of important tasks.
80 by 20 became magic figures and they have been proven to be correct in various areas, let’s look into some of them.
80% of our efficiency depends on 20% of activities
In workplace we are loaded with lot of varieties work which may be applicable to our work position and our efficiency is not determined by those 80% of irrelevant work which we do but only the 20% of the work which we are actually hired for, we have to focus more on this 20% compared to the rest 80% percent because, the 20% work which we were hired also takes 80% of our working time, the principle is valid even here.
80% of our work time is consumed by only 20% of activities
80% of company’s revenue is taken away by 20% of top employees
If we can carefully notice then the CEO, Chairman etc are the top 20% employees who will get the lion share of 80% and then there is no chance for the 80% of employees other than adjusting away with the remaining 20% of revenue left.
80% of our profits are derived from only 20% of customers
Not all customers are profitable in business except some from whom we earn all the revenue needed for running a successful business and that exactly fits with Pareto principle of 80 / 20
Microsoft says 80% of small related bugs get resolved by fixing the top 20% of major bugs
80% of readers, viewers visit only 20% of top posts or categories in a blog and this is applicable to even 80% of revenue to a blog.
Science & Technology
80% of useful gadgets & innovations are done by only 20% of companies rest are just copying of rehashing the innovations.
Why ???? How ????
You can ask a question of why this principle and how this can be helpful to you and me as I have told in the beginning. Let us think in the terms of 20%, if 80% of effects depend on only 20% then if we focus more on 20% only and less or nothing on 80% then shall we not get our 80% for sure. Say if 80% of a company’s revenue is taken away by 20% of employees then instead getting jealous of those employees, if we also try to get into those 20% of employees then we can also get a share in the 80% of revenue.
So, let’s focus on 20% causes to get 80% results. You can make out some way of 80 / 20 rule in your chosen field and then get 80% rewards. All the best.
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