The Pareto principle explained

How does the Pareto Principle work?

Suppose you learn a new language and find that 80% of the time you use only 20% of the words? Or what if you discover that 80% of your business sales come from only 20% of your products? That's the Pareto principle at work! At its core, this rule implies that not all efforts are equal. Some efforts carry more weight than others and can generate significant, positive effects.

Application of the Pareto Principle

For example, in a business context, the Pareto principle may mean that 80% of a company's profits can come from only 20% of its customers. Or that 80% of complaints come from 20% of customers.

In terms of personal productivity, it could mean that 20% of your tasks deliver 80% of value. So if you have a list of 10 items to do, there are probably only 2 tasks that are really important and provide most of the value.

So the idea is to get your focusing on the 20% that delivers the most value. By focusing your efforts on these tasks, you can achieve more without necessarily working harder, but by working smarter.

Conclusion

It is important to remember that the Pareto principle is a general rule of thumb and not always exactly true. It is intended as a tool for thinking about efficiency and priorities, not as a strict rule. The Pareto principle is a powerful tool that can help you work more efficiently and get better results, but it is important to apply it with wisdom and flexibility.