Pareto Rule: What Is It

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Pareto Rule: What Is It
Pareto Rule: What Is It

Video: Pareto Rule: What Is It

Video: Pareto Rule: What Is It
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In the 19th century, the Italian Pareto deduced an interesting mathematical pattern, drawing attention to the fact that 20% of the pea seeds planted in the ground, which they were grafted into, brought 80% of the harvest. After observing the agricultural culture, he came to the conclusion that this principle is applicable to any sphere of life: only 20% of the efforts made give 80% of the result. Today this pattern is called the Pareto rule.

Pareto rule: what is it
Pareto rule: what is it

The Pareto rule is a very popular method for assessing work productivity in most areas of the economy and industry. And psychologists apply this principle in self-development guides.

General formulation

Basically, the rule can be applied to anything:

  • Only 20% of the factors influencing the situation provoke 80% of changes in it. Simply put, 20% input gives 80% output.
  • Only 20% of the literature read brings 80% of knowledge.
  • Only 20% of the world's population owns 80% of the capital in the world.
  • Only 20% of the company's clients provide 80% of the profits.
  • Only 20% of drinking people consume 80% of all beer produced (the so-called "beer law", which is often used for advertising).

Practical wording

In psychology, economics, office work, statistics and other industries, the following formulation is most often used in practice:

Only 20% of the applied effort can give 80% of the result.

Why does the rule work

If you think about it, the percentage in the Pareto law is taken very conditionally. Any exact values are given only to indicate proportions. This figure in each company, in each city, in each industry can be different: 25/75, and 30/70, and 18/82.

The law can be formulated in a more abstract way: "Only a small part of the efforts made gives the maximum result." And if it's even simpler: "Only a few actions are effective."

The conclusion is quite logical. Even ordinary life experience will confirm that a person does some of his work in vain, but some actions are still very successful. For example, a boxer (even without knowledge of the Pareto law) will confidently say: only one of his hooks will knock out the opponent, while the rest of the attacks will be repulsed or ignored.

So, what is the use of this law if it already works? There is a benefit! And it is that this principle contributes to the awareness of their own abilities. A person understands what and how he needs to concentrate in order to achieve a brilliant result.

It becomes obvious that always and in everything one should concentrate on the main thing and, with a clear conscience, discard the ineffective and secondary. Pareto's law "driving the Universe" (advertised in brochures on personal self-development and economic guides for beginners) is needed for one purpose - to help overcome barriers in human consciousness.

He teaches that a person should be able to take deliberate steps and not waste his time on trifles.

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