Many people want to do the job efficiently. But often people spend a lot of time on nonsense. The Pareto method will help to cope with the problem. He will teach you how to save your time, effort and money.
History of creation
The Italian economist Vilfredo Pareto invented the method back in 1897. But the Pareto method received practical application only in the second half of the 20th century.
It is believed that the idea came to the Italian economist while working in the garden. He noticed that about 80% of the peas grew on 20% of the pea pods. After that, he began to think about the country's economy. It turned out that 80% of the wealth is owned by 20% of people. After going through a lot of data, Pareto found that such a factor is relevant for any economic system at all times.
Despite the fact that Pareto became the creator of his technique, he could not give it a complete look. Only in 1947, business consultant J. Juran tested the technique in practice and became convinced of its effectiveness. However, Juran wished to name the technique after its creator.
The technique gained widespread popularity only in 1997, thanks to the famous book by R. Koch. It talked about how to do more work with a minimum of effort.
The essence of the law
The Pareto Principle says that 80% of success depends on 20% of actions. This will seem unfair, because people are used to cliches. Every client is important for shops, business must be given 100%, and there can be no trifles in business.
The modern rhythm does not allow paying due attention to all aspects. Therefore, the Pareto principle teaches you to correctly prioritize. Pareto took the 1960 presidential election as an example. At this time, Kenedy and Nixon were fighting for the post. The latter decided to go around all the states of America, while Kenedy chose only the most densely populated of them, and, as you know, won.
How to apply in life
This method is effective in all areas from time management to financial management.
Communication
Highlight the 20% of people who bring you 80% of positive emotions. Keep communication with others to a minimum. This principle also applies to social networks.
Finance
Notice the 20% of purchases that hit 80% of your budget. Analyze your spending, think about how you could save for investment.
Time management
It was noticed that 30 minutes of continuous work on one task is more productive than ten minutes of work with switching to different tasks. Find out which 20% of the time you are most productive. For such a period, appoint the most important cases.
Criticism
This principle is most often criticized by mathematicians. They say that it is not always possible to single out exactly 20% of important things, and all the efforts made does not guarantee 80% of success. Indeed, in practice, it is not always possible to identify the most important thing; it is not without errors. However, without trying, there will be no success.
