The 80-20 Rule–article 4 Of 6
In the late 1800s an Italian economist named Vilfredo Pareto was studying the distribution of wealth in European countries. He discovered a predictable imbalance in the distribution of wealth. He found that approximately 80 percent was controlled by approximately 20 percent of the population. This was later known as Parato’s Principle or the 80/20 rule. 1
The 80/20 rule is an observable natural phenomenon. It governs many scenarios in life in which 80 percent of the results come from 20 percent of the inputs. There is a beauty and elegance to life that repeats itself again and again. The 80/20 rule is one of these rules of thumb that reflects human nature, and how the world operates.
Here are some examples of the 80/20 rule:
• Eighty percent of the work done at a company will be done by twenty percent of the people.
• Eighty percent of the people who fly will be travel with twenty percent of the airlines.
• Eighty percent of the computers will be built by twenty percent of the manufacturers.
• Eighty percent of the music listened to will be created by twenty percent of the artists.
These statements are clearly not exact, but can be made without a great deal of research, and serve as useful guidelines when making general assumptions, or when trying to get a feel for how things work.
Why does the 80/20 rule work so well? The answer is simple. 20% of the people, nature, products and systems stand out (excel) from the rest. Beyond that explanation would probably take many years of research and a PhD dissertation thrown in for good measure. The results probably wouldn’t give a much better explanation.
Tasks can frequently be overwhelming. It is easy to flounder if you don’t know where to start. The beauty and power of the 80/20 rule is that it can frequently be used to help you determine where to begin. A question to ask yourself when beginning a task is:
“Where should I put most of my energies to give me 80% percent of the desired results?”
This insightful question will help take a seemingly overwhelming task to something that begins to be manageable. Select the parts of the task (dragons) that will give you the greatest benefit for the least time invested. In other words: Pick your dragons carefully.
1 Rigg, Alan. How to Beat the 80/20 Rule in Selling–Why Most Salespeople Don’t Perform and What to Do About It. (Tucson AZ: Hats off Books 2003, 2004).
www.alanrigg.com
Chuck Clayton’s primary education and professional experience is in mechanical engineering and business problem solving. He has over thirty years experience in these areas.
Chuck has an insatiable curiosity of the world and how things work. This has guided him to learn effective ways of making decisions, solving problems and free up time!
Chuck is the Author of the long awaited book
The Re-Discovery of Common Sense!
A Guide to the Lost Art of Critical Thinking.
For more information please see:
Tags: Common Sense, Critrical Thinking, Decision Making, Problem Solving, Thomas Paine
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