Nowadays you rarely meet a person who has never heard anything about the Pareto principle. This is said during training in many companies, this principle is passed by word of mouth by specialists in sales and advertising. And yet, what kind of principle is this?
Pareto efficiency principle
As early as the 19th century, the famous economist from Italy named D. Pareto derived an amazing rule, which quite accurately makes it possible to describe the most diverse phenomena of life. Surprisingly, this mathematical method is applicable to almost everything that is possible. Since then, it has not been refuted, and until now the name of the rule 80/20 or the Pareto principle is proud.
If to say the definition, the Pareto optimality principle is: 80% of the value falls on objects that make up 20% of their total number, while only 20% of the value is provided by the remaining 80% of the objects from the total. To perceive the definition is difficult, so let's look at the examples.
Suppose there is a firm that sells, and it has a customer base. According to the Pareto 20/80 principle, we get: 20% of this base will bring 80% of the profit, when as 80% of customers will bring only 20%.
This principle is equivalent for one particular person. Of the 10 cases that you make in a day, only 2 will bring you 80% success in your case, and the remaining 8 cases - only 20%. Thanks to this rule, it is possible to distinguish the most important cases from the secondary ones and use their time more efficiently. As you understand, even if you do not do the remaining 8 cases at all, you will lose only 20% of efficiency, but you will gain 80%.
By the way, the criticism of the Pareto principle consisted only in trying to shift the ratio by 85/25 or 70/30. This is often said in trainings or training in trading firms when hiring new employees. However, so far no other relationship finds the same life-supporting evidence as Pareto's.
The Pareto principle in life
You will be surprised at how the Pareto principle is closely related to all spheres of our life. Here are some impressive examples:
- 80% of people died in 20% of all wars on Earth;
- 80% of food is eaten in 20% of the most famous and fashionable restaurants;
- 80% of washing accounts for 20% of garments;
- 80% of our efforts are brought to us by 20% of our friends and relatives;
- 80% of the time when reading the newspaper we spend on reading 20% of the published materials;
- 80% of the time missed on the sick leave account for 20% of the company's employees;
- 80% of documents are needed only in 20% of production situations;
- 80% of the phone calls we make 20% of the subscribers that we have in the phone;
- 80% of the best airtime falls on 20% of TV programs that viewers like;
- 80% of the dirt accumulates on 20% of the floor area;
- 80% of purchased products account for 20% of our daily expenses;
- 80% of the country's money is concentrated in the hands of 20% of the population.
A list of these examples illustrating the immortal Pareto principle can be continued indefinitely. Most importantly, not only accept this information and be surprised by it, but also learn how to use it, distinguishing important matters from not too important and enhancing their effectiveness in any way.
It is always worthwhile to realize that only 20% of your normal daily activities are really significant things. It's not always possible to accurately recognize them, but if you always keep the information in mind about it, you will notice that it became easier to refuse important meetings, unnecessary affairs and wasted time spent. Concentrating only on the main, on the fundamental, you can achieve the desired results in the shortest possible time.