The “Pareto Principle” takes its name from Italian economist Vilfredo Pareto (1848 – 1923), who noted that 80% of the property in Italy was owned by only 20% of the residents. This later became the Pareto Principle – most commonly know as “The 80/20 rule” - that states 80% of outcomes are derived from 20% of the causes. For example 20% of your customers may equal 80% of your sales. Furthermore, 20% of your customers may account for 80% of the complaints! This principle can be applied to life as well, for example, 20% of your friends may account for 80% of the fun you have. And 20% of what you learned in school may equal 80% of all the value you derived from the teachings. It is the principles ability to be so universally applied that makes it so powerful and useful.
Hold in mind that this is just a theory, and the theory is not firm on these numbers. Pareto himself would tell you that some times the formula is, for example, 90/10 or 70/30. But the fact remains that the vast majority of the time, the value is heavily weighted. We can use this idea/model to great advantage in time management by focusing on our highest gain tasks. By focusing on our highest gain tasks we can increase our gains and efficiency greatly. Using this model we will better understand which tasks we need to eliminate, delegate or outsource.
Using the Pareto Principle for Time Management:
How do we best used the Pareto Principle for time management? I like to start by looking at my long-term goals and evaluating my current plan. Within my current plan what are the 20% of activities that are likely to reap 80% of the results? Begin work on the 20% and reevaluate the remainder of your plan to see where it can be improved.
Then look at your daily goals and ask yourself, "What is the 20% of everything that I need to get done, that will yield me 80 percent of the benefits?" Then make a plan to intensely focus on the 20% and try to work on this area single-mindedly until the 20% is complete. Try not to be distracted by the 80%, and wherever possible, eliminate, delegate or outsource these tasks.
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