PARETO PRINCIPLE (80/20 RULE)

What is the Pareto Principle? 

Pareto Principle (80/20 rule) was developed by Italian economist Vilfredo Pareto in 1896. It states that roughly 80% of outcomes come from 20% of causes. Applying this principle to your work can help you determine your priority for each task and optimize your time. 

Examples of Pareto Principle:  

• 80% of your daily routine affects 20% of your future 
• 20% of your team’s ideas result in 80% of the project’s success 
• 20% of the hours per workday creates 80% of the productivity 
• 80% of a company’s revenue comes from 20% of customers 

How to apply Pareto Principle in your work 

• Step 1: List out all the things needed to get done during the day 
• Step 2: Identity which tasks have the most impact on your project 
• Step 3: Plan to delegate or remove activities producing less return 
• Step 4: Create a schedule to complete tasks in order of priority 

Benefits of using the Pareto principle 

• Defining clear priorities for both you and your team 
• Improving time management and leadership skills
• Utilizing your resources better 
• Boosting daily productivity 

Misconception & Fact:

• Misconception: Only focus on more important tasks and ignore other less important ones. 
• Fact: Try to invest your resources into things in order of priority without putting aside the rest of your tasks.