Skip to content

January 20, 2018

The Pareto Principle Makes You More Positively Productive

Have you heard of the Pareto Principle? Many people have and use it to be more positively productive every day. If you haven’t, here’s a quick explanation of what it is and how you can use it.

In the 1800s, Italian economist Vilferdo Pareto studied the wealth and income distribution in Europe. He discovered that approximately 20 percent of population held 80 percent of the wealth. The ratio held when it was extended to other areas and became known as the “Pareto distribution” or the “80/20 Rule.”

The 80/20 Rule states that roughly 80% of effects come from 20% of causes. For example, 80 percent of your profits will come from 20 percent of your customers, and 80 of complaints you receive also will come from 20 percent of your customers! Sometimes, the distribution skews one way or another—90/10 or 85/15, but generally it holds true.

Applying the Pareto Principle at work means that 20 percent of your activities will produce 80 percent of the results you need. The more you focus on the 20 percent that delivers the 80 percent, the more positively productive you are. The key is identifying the 20 percent that matters!

Look at your job description and performance plan. What results are you being held accountable to achieve? What is in the top tier of importance? Is the client conversion project more important than the monthly sales report? Is the new marketing plan implementation more important than the stack of performance evaluations on your desk?

Each time you decide to focus on a task, ask yourself if you are working on the most important task you can in the moment? Are you working on the critical 20 percent? Stopping to answer these questions will help you focus on the key tasks. See my blog posts Priorities Matter and Juggling Multiple Deadlines Using Paired Comparison for more information you can use.

Read more from Uncategorized

Comments are closed.