Pareto rule: what is it and how to apply this law in practice

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

This principle has long been used by many successful people, while for the rest it is an unknown secret. Those people who know and are able to apply the Pareto Rule find it much easier to organize their lives and make the most correct decisions. And some generally believe that not everyone who is aware of it has succeeded in knowing the true power of this universal law. The turn has come for us to find out what the 80/20 Pareto Rule is and what its practical value is.

Concept

The gist of this law is that only a small fraction of the causes, efforts or funds invested are responsible for most of the results, rewards earned or products received. In other words, only a fifth of our work (20%) and the time spent actually bring us closer to our goal, and the remaining 80% of our attempts to achieve what we want, as a rule, do not lead to anything significant. Sounds a little creepy, but that's the Pareto Rule.

An example of this law can bemeet at almost every step. In business, a fifth of the product range brings in 80% of the profit. The same statement is true for customers with buyers. The Pareto Rule also applies in any organization or institution: 20% of employees do 80% of the work, while the remaining people do not have as much enthusiasm or are simply not motivated properly. Now look at our society. Most of the crimes (80%) are committed by hardened criminals (20%), the vast majority of road accidents are committed by the same drivers, a fifth of newlyweds are still waiting for an excuse to break the sacred bonds of marriage (80% of divorces). Finally, only twenty percent of children fully understand and use most of the opportunities that our education system provides. As you can see, the Pareto Rule works everywhere, even at home. After all, if you think about it, 80% of the time we wear almost the same clothes. Only 20% of the books we read are of real value to our self-development, and only 20% of the financial expenses can really be justified.

Why is the Pareto Rule so important?

The 80/20 Law can have a very serious impact on our lives, because it conflicts with what we previously used to consider logical. Thus, we have a right to expect that all our efforts have approximately the same value. That all factors equally affect the outcome of an event. That every day is just as important to us as any other day. That all acquaintances have the same value. What about allcorrespondence should be treated with due care. That all possibilities have the same value, no matter which one seems to be the most preferable.

The Pareto rule helps to take a sober and pragmatic look at what is happening to us in the world around us. By identifying and discarding unnecessary ballast, we will not only get more free time, but will also be able to concentrate on what is really important to us, and thus achieve our goals faster.