Known as the 80-20 rule, the Pareto principle originated from the work of Italian economist and sociologist Vilfredo Federico Pareto (did we say Italian?).
The Pareto principle states that approximately 80% of the results arise from 20% of the causes. This principle can be applied to both private and professional situations.
For example, where do we see it materializing?
20% of customers account for 80% of sales
20% of the services or products generate 80% of the profits
80% of the results are attributed to 20% of the employees
Or
20% of all factories are responsible for 80 percent of all air pollution
A grade of 80% (or higher) is earned by 20% of the students
You got the idea.
*Pareto’s principle isn’t exact, but the principles behind it support a balanced and correct distribution of resources (time, money, attention).
Now, in regards to effectiveness…
According to Pareto’s principle, we achieve 80% of our desired results with 20% of our effort. This fact is important to consider when prioritizing tasks. The 80/20 rule directs us to put the most effort into channels that create the greatest value for us both in business and in our personal lives.
The goal is not to save time, but to pay attention. It’s not about working less, but about focusing on the things that truly matter (not just financial gain).
We have a natural (and annoying) attraction to the less meaningful things in life
When it comes to productivity, we are constantly battling between small, superficial, and not-so-important tasks, and those that have a significant effect on our long-term goals.
How come?
The reasons for this are explained in most of the other articles I’ve written about productivity (recommended reading, for example, about deep work).
The superficial is easy. It’s difficult to hold attention for an extended period of time. We live in a world that encourages us to be busy all the time.
Getting caught up in the superficial is something that feeds on itself. It is difficult to even observe that we are not reaching our goals.
Back to the 80/20 rule
80% (or more) of our time is spent on superficial and urgent tasks.
What about the remaining 20%?
How does the Pareto principle help us manage time and prioritize tasks?
After we understand the irony of the 80%, we can start working on the meaningful 20% of our lives. The Pareto Principle gives us a broad picture of where we should invest our resources to move forward effectively in our businesses or our personal lives.
Some examples are:
- If we’re a freelancer, for example, we get 80% of our revenue from 20% of our clients. If this is true for us too (in different numbers but similar trends), it’s very reasonable to invest in cultivating and deepening our relationship with them.
- If most of our activity is embodied in a long and endless list of tasks that bring only partial results, the practical process and the right mindset are to find and characterize the 2-3 most significant tasks or projects and focus only on them with the simple understanding that they are the source of 80% of our progress in personal and professional life.
Thus, two key questions for reflection include:
- Is there anything I’m investing in currently that makes up the 20% that actually works?
- Is there anything that takes 80% of my time without giving me real value?
To conclude
The Pareto principle, the 80/20 rule, is something I like to call “less but better” (a term I happily borrowed from essentialism).
The most significant thing we need to remember is to ask ourselves every day anew – what can I do to eliminate the superficial and worthless and pursue only the meaningful and essential?
In business as well as in life, this valuable strategy is what separates mediocrity from smashing success.
Do you know where you stand on the scale?
