The 80/20 Principle asserts that a minority of efforts lead to a majority of results. This means that 80% of what you achieve comes from 20% of your efforts or time spent.
Back in the early 20th century, Vilfredo Pareto was having the same realization of his own: 80% of Italy’s land was owned by only 20% of its people. He also observed the same thing in his own garden. He saw that 80% of the peas from his garden come from 20% of his pea plants. So after this observance, he concluded that 80% of all results, whether be in Business, economics or gardening derive from only 20% of the efforts.
Definition of Pareto Principle:
This principle states that 80% of your results come from only 20% of your efforts. This principle is initially credited to Vilfredo Pareto due to his observance in the early 1900s about Italy’s land.
More generally, the Pareto principle is an observation not a law that there is an inbuilt imbalance between causes and results, inputs and outputs, and efforts and rewards. A good benchmark for this imbalance is provided by the 80/20 relationship. It can mean all the following things.
- 20% of the inputs create all 80% of the results.
- 20% of the workers at the workplace produce 80% of the results.
- 20% of the customers create 80% of the revenue.
- 20% of the bugs cause 80% of the crashes (Yeah I can say that It really happens 😊 )
- 20% of the features cause 80% of the usage.
Means there is an inbuilt imbalance of distribution.
How we can use the 80/20 principle:
As 80/20 rule says 80% of your results come from 20% of your efforts.
That doesn’t mean that you should come to work only a day in in a week to give your 20% efforts and spend rest of a week in enjoying it.
The First thing to clear is that Pareto Principle is not suggesting you to work less and enjoy more. Instead of this it indicates you to focus on your efforts, and work hard the area that matters the most and produce more results while accepting it is sometimes fair to left the smaller stuff slide.
How to apply Pareto principle to your life If you work alone Means you are the boss of your own.
If you do freelancing , The Pareto principle says that 80% of your profits generated by 20 % of your clients. Means your 20% clients are responsible for your 80% profit.
Yeah it is true and proven. I am also a freelancer and I personally observed this that some clients are returning buyers and spending your efforts on them and giving them more priority will increase your revenues or sales because when they pleased from your work they will award you more projects.
That doesn’t means you should become unprofessional, or disrespect your clients. But if you are feeling overwhelmed and tight on time, it might be necessary to recognize where you have to put your efforts. And that’s what Pareto Principle says.
Remember that numbers 80% and 20% are not exact statistics, just estimate the point is not the numbers: the point is everything in life is not created equal and there are few things which are weighted with a far greater reward than others. So put your efforts on those and save your precious time. So you can become a better, more useful, and happier human being.