Vilfredo Pareto an Italian economist established the 80/20 principle which became famous as the Pareto law or Pareto's principle .
He devised this law by observing that 80% of Italian land holdings were only in 20% hands. In the 1800s he established this law as a socio-economic law but over a period of time it’s universal application in many fields including Diverse Business management areas became quite evident.
Firstly :- Its interpretation in business management and Interpersonal relationships is that beyond a certain thresh hold any effort to improve a situation or relation becomes prohibitively high in terms of resource input cost. This may be in terms of time, money or even attention.
Secondly :- It also implies that only 20% of our areas of operation deserve our maximum attention as 80 % results are generated from these 20% areas alone.
Here are a few examples:-
80% of all that is productive results from 20% effort.
80% of money value of an inventory is in 20% items alone.
80% meals ordered in any eatery come from 20% menu items.
80% telephone calls come from 20% callers.
80% value comes from 20% relationships.
80% business comes from 20% clients.
80% achievement comes from 20% of your skills.
80% failures result from 20% misjudged actions.
80% troubles come from 20% people.
80% happiness comes from 20% people.
80% troubles can be avoided by avoiding 20% people, situations, gossip etc.
80% achievement is attained from 20% of your time or we can say that you can be 80% effective by focusing on 20% of your critical goals .
Progress means moving resources from low-value to high-value uses. When we talk of time management we are talking of time as the most important resource. In terms of time as a resource the prudent application of this law becomes very important. Best way to do so is to prioritize your work by deciding what actions or jobs are more important or critical to accomplish your goals, and then understand that 80% of your success in meeting your deadlines depend on timely completion of those 20% critical jobs.
Secondly :- It also implies that only 20% of our areas of operation deserve our maximum attention as 80 % results are generated from these 20% areas alone.
Here are a few examples:-
80% of all that is productive results from 20% effort.
80% of money value of an inventory is in 20% items alone.
80% meals ordered in any eatery come from 20% menu items.
80% telephone calls come from 20% callers.
80% value comes from 20% relationships.
80% business comes from 20% clients.
80% achievement comes from 20% of your skills.
80% failures result from 20% misjudged actions.
80% troubles come from 20% people.
80% happiness comes from 20% people.
80% troubles can be avoided by avoiding 20% people, situations, gossip etc.
80% achievement is attained from 20% of your time or we can say that you can be 80% effective by focusing on 20% of your critical goals .
Progress means moving resources from low-value to high-value uses. When we talk of time management we are talking of time as the most important resource. In terms of time as a resource the prudent application of this law becomes very important. Best way to do so is to prioritize your work by deciding what actions or jobs are more important or critical to accomplish your goals, and then understand that 80% of your success in meeting your deadlines depend on timely completion of those 20% critical jobs.
MAKE SURE YOU PUT IN 80% OF YOUR EFFORT IN ACHIEVING THESE 20% OBJECTIVES WITHIN THEIR DEADLINES. AS A RESULT YOU SHALL SEE THAT THE REST OF YOUR WISH LIST SHALL NOT REQUIRE MORE THAN 20% OF YOUR RESOURCES, IN TIME, AND OTHER EFFORTS.Balwant Gurunay
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