The 80/20 rule: How to make lives easier?

Vilfredo Federico Damaso Pareto is a renowned economist and has given the world the theory of 80/20 rule. He was born in Italy in 1848. The 80/20 rule is a maxim that states that 80 per cent of outcomes are a result of 20 per cent of our inputs. The rule is known as the Pareto Principle. 

Legend has it that one day he saw that 20% of the pea plants in his nursery produced 80% of the sound pea pods. The observation made him consider the distribution that causes productivity and outcome. He pondered and found that 80% of the land in Italy was possessed by only 20% of the populace. He researched various ventures and found that 80% of creation regularly originated from only 20% of the organizations.

The majority of the results come from minority reasons

Pareto in a straightforward way explained that little done with effectiveness could give us maximum results. The rule is that our 80% outcomes depend on our 20% of actions. We often don’t realize how the rule has been in our lives for a very long time. 

For example: When we study for examinations, we say ‘let’s cover the important ones’ which actually is implying the 80/20 rule. The examination usually is based on very little syllabus and studying only that 20% will give us around 80% of marks.Let’s take another example: have you ever noticed how the sales department generates 80% of the revenue. Then again there are just a few people in that department. This again shows how the rule has been true for a long time. 

There are plenty of examples to determine the depth and existence of this rule, but the important part is how to work this in our day-to-day lives. 

How does this work in our lives?

There are 20% high net worth individuals in every economy that contribute to the 80% growth. We have 20% of the clothes that we wear 80% of the time. See how the rule has been applied all along. 

There is always a difference between being busy and productive. It’s not important that being busy can get us outcomes. Every profession can run or has been running on this rule. Even in our personal and social lives, we apply this. Like a social circle, one might have 100 friends, but there will be a handpick on whom one can rely upon. 

Quality over quantity is the key.

The 80/20 rule is designed so that it can benefit us, like: 

1.Time management:                                                                             

As per the rule the minimum but effective input can give maximum output. Keeping this in mind, one should work towards achieving dedicated 20% efforts to get 80% of what they want to achieve. This way managing time becomes easy and can be utilized for other important things as well. The rules essentially is guiding you to put in concentrated effort instead of dragging your feet and expecting outcomes. 

2. Focus on career:                                                                               

Irrespective of whatever field we are from the 80/20 rule will help us in moving towards our goal. The 80/20 rule provides a clear framework for say, sales, and marketing goals. Whether it concerns customers, sellers, or company resources, it may be worthwhile to apply the Pareto principle in a company's business activities. Following this as a practise will help us in "expectation management".

3. Increases efficiency:                                                                                              

It is better to work smarter than to work hard. When you carefully distribute your time and energy based on this rule, you will be more efficient in your work and life. We can all increase our ability to think critically about how we spend our time and what we get from it.

Try the rule and make your life easier and see firsthand the effectiveness of this rule in your life. You really start to feel the meaning of "less is more". The lockdown can help in applying this tool with household chores and making this time useful. 

Stay home! Stay safe!