The 80/20 Principle

While a was reading another blog this morning, I was reminded of a principle that has been around from some time. It was created by Vilfredo Pareto who “noted the consistently lopsided relationship between inputs and outputs” and ever since we’ve called it the 80/20 Principle. This statistical pattern that 20 percent of your effort produces 80 percent of the results is universal.

The 80/20 principle is all around us. From a buinsess prerspective, the 80/20 principle goes like this:
• 20 percent of your donors give 80 percent of the budget
• 80 percent of your sales come from 20 percent of your customers
• One-fifth of your time (equivalent to one day a week) produces 80 percent of your important work
• 80 percent of your people problems come from 20 percent of your staff
• 20 percent of your volunteers do 80 percent of the work

What sucks us into the negative side of the 80/20 principle are low-value use of your time.

Things like, things other people want you to do, things that have always been done this way, things you don’t enjoy doing, things that are always interrupted.

But on the positive side, there are two things that can produce alot of wonderful things . The two I am thinking of include “things that you can get other people to do for you with relatively little effort on your part,” and “things for which it is now or never.” Can you relate?

As we look toward another wonderful year, let the 80/20 principle effect your planning and outcomes.

Have a Great Day

David