The 80/20 principle which is also known as The Pareto Principle , is a popular concept in management theory. The idea was coined by an Italian economist and sociologist named Vilfredo Federico Pareto.
According to the Pareto Principle, in most cases and most events, approximately 80% of the results result from 20% of the causes. Examples of this principle can be found in many situations in both personal and business life.
Where will we see this materialized, for example?
80% of air pollution comes from 20% of all factories
20% of employees are responsible for 80% of the results or
80% of sales come from 20% of customers
80% of profits come from 20% of services or products
20% of students receive an 80% score (or higher)
And so on, you get the message.
The important point: Pareto’s law is not exact, but the principles underlying it give us tools and a way of thinking that greatly support the balanced and correct distribution and investment of resources (time, money, attention).
In the context of time management, the Pareto Principle refers to the fact that 80% of our results come from 20% of our effort. This fact can be very helpful in prioritizing tasks. The 80/20 Principle directs us to put the most effort into those avenues that create the most significant impact for us, in business as well as in our personal lives.
It’s important to note – this isn’t about saving time, but more about paying attention. It’s not about working less, but about working on the really important things that have the most impact on our bottom line (not just financial profit).
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We have a natural (and annoying) attraction to the less important things.
Generally, when it comes to productivity, there is a constant struggle between the small, superficial, and not-really-important tasks and the tasks that have a significant impact on our long-term ambitions. Why?
In short – because it is difficult for us to do things that require us to concentrate and pay attention over time, and because we live in a reality that encourages us to constantly deal with superficial things.
The spillover of superficiality is something that feeds itself. Very quickly, it becomes difficult for us to see that we are not making real progress toward our goals.
Let’s go back to the 80/20 rule?
It’s reasonable to say that 80% (and more) of our time is spent on superficial and urgent tasks.
So what about the remaining 20%?
Read also: How to Stay Consistent with Your Goals
How does the 80/20 principle(Pareto Law) help us with time management and prioritizing tasks?
The Pareto Principle gives us a big picture of where we should best invest our resources to move forward effectively in our business lives (and, for that matter, in our personal lives). Once we understand the irony of the 80/20 rule, we can start working on the wonderful 20%.
Examples:
If we are freelancers, for example, the Pareto Principle suggests that 80% of our revenue comes from 20% of our clients. If that is the case for us as well (even if in different but similar numbers) – it is very reasonable to think that it is worth cultivating and deepening our relationship with those 20% or investing in finding clients with similar characteristics.
If most of our activity in business or personal life is embodied in a long and endless list of tasks that only leads to partial results, the correct practical and cognitive process is 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 our personal and professional lives.
Read also: Work Smart, Not Hard the Secret to Getting More Done with Less Effort
Two important questions for self-examination
Which of the things I’m currently invested in make up the 20% that actually gives me results?
What are the time and energy wasters that take up 80% of my time without giving me any real value?
In conclusion, the idea of the Pareto Principle, the 80/20 Rule, or whatever you choose to call it is something I like to call “less is more”.
In most cases, a small portion of our efforts yields the sweetest fruits, and therefore the most important thing we need to remember is to ask ourselves every day – what can I do to eliminate the superficial and worthless and pursue only the important and essential things?
This valuable strategy is what separates mediocrity from dazzling success, in business life as well as in personal life.
Where would you place yourself on the scale?
Read also: 5 Unconventional Principles for Effective Time Management from Bill Gates
