The “Pareto Rule” is an opportunity to get the maximum result with minimal energy consumption and significantly increase efficiency in absolutely any business. This is an effective method of running an effective business.
The main idea behind the law, discovered back in the 19th century by the economist Vilfredo Pareto, is that with any action, if you use only 20% of the effort, you can get as much as 80% of the result and profit. Conversely, with an 80% return, only 20% of the expected outcome will be achieved. It follows from this that in order to successfully complete the work, only the most important actions need to be done, while the efforts made after the main ones will bring minimal effectiveness. For success in any business, it is important to identify the key points, the most favorable conditions and the most important resources that can give a significant share of success.
Improving efficiency in various areas
To improve your performance, you need to focus on the most important and beneficial stages that can contribute to increased efficiency. If you dissipate attention and waste energy on a large number of elements, considering each of them useful, you will not succeed. "Pareto's Law" gained immense popularity back in the 50s of the 19th century and is actively used to this day in various fields of activity, namely:
- advertising - marketing services have found out that too much money is spent on attracting customers who give too little money;
- trade - a significant part of the company's capital is spent on employees who are unable to bring income to the company, and the productivity of their actions is too low;
- information technology - it turned out that 80% of the computer's operating time is spent on solving only 20% of problems, after which the specialists began to improve the capabilities of computers, increased their functionality and became the leaders among IT corporations;
- an individual person - if, before the start of the next day, you analyze the things that are worth doing and find out the most important aspects, discarding the secondary ones and making every effort to them, you can significantly speed up the performance of all the work and simplify your life. Doing your favorite work, which is fun and easy, gives you more efficiency than activities that still need to be mastered.
You can improve efficiency if you identify the most productive time period of the working day. The fact is that each person can work to the maximum only for certain hours and it is important to determine the hours of this rise. Even if an employee performs his duties only 20% of the time, but at full capacity, he will receive 80% of the result.
Self-development according to the 20/80 principle
A person draws most of his knowledge from literature. But, as it turns out, as many as 80% of the books read do not give any positive result, or it only accounts for 20% of the effect. And only 20 percent of the literature read has an 80 percent effect. Therefore, it is important to carefully choose books to read that will help you grow, improve your vocabulary, learn and spiritually enrich yourself.
