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Achieving more with less was inspired by the book 80/20 principle written by Richard Koch. Before we proceed, it’s important to state the power of this fraction, it’s also of great importance to state that the 80/20 Rule is used in various industries. From helping students with passing exams to helping businesses increase their revenue by identifying profitable customers. Learning to apply this principle in your own life can help you eliminate waste and be more productive.
Before we dive in, it’s important to quote Timothy Ferris, he once “the 80/20 principle is the cornerstone of results-based living”. The principle teaches how to achieve more with less. This principle named after Italian economist Wilfredo Pareto is called a lot of other names; the power of distribution, pareto’s principle, the law of vital few and so on. By the end of this post you should have gathered useful insight into the Pareto’s principle. For the purpose of better understanding we’ve broken down this post into the following parts:
What’s the Pareto’s principle?
Application of the Pareto’s principle.
Pareto’s principle in school.
Pareto’s principle in relationships.
Identifying low output processes.
What's the Pareto's principle
In 1906, Wilfredo Pareto observed in his garden that 20 percent of the pea pods generated 80 percent of the healthy peas. He further discovered that 80 percent of the land in Italy was owned by just 20 percent of the population.
The Pareto principles states that in any situation twenty percent of the inputs or activities are responsible for 80 percent of the desired output or results.
Application of the Pareto's principle.
This principle by Pareto applies to every aspect of our daily lives. Do you wear 20 percent of your shoes 80 percent of the time? In a book, 20 percent of the pages contain 80 percent of the important information, 20 percent of customers produce 80 percent of a company’s revenue. In addition, 20 percent of the products you put up for sale generate 80 percent of your business revenue. Finally, 80 percent of the inputs we make generate the extra 20 percent of the desired results. This principle isn’t constant and can vary from time to time depending on your situation. It could be 75/25, 90/10, the variations are endless.
Nevertheless, one thing is constant, majority of results come from minority of causes. The big question then comes, how does this principle apply to your life?
There’s a difference between being busy and being productive. Majority of the populace believes working more hours will get them more results. The principle of getting better results is dependent on how well you spend the time you invest into your work. If you haven’t applied the pareto’s principle into your life yet, you are most likely just being busy.Let’s talk about it’s application.
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