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July 2004
The Pareto Principle was discovered
by Vilfredo Pareto in 1906 when he observed that 80% of the wealth
was owned by 20% of the people in Italy. While gardening, he later
observed that 20% of the peapods in his garden yielded 80% of
the peas harvested. His concept of disproportion has stood the
test of time; business schools across the land refer to it as
the “80/20 Rule”.
So what does this imbalance have to do with organization? Plenty!
For example:
• We wear 20% of the clothes in our closet 80% of the time.
• 80% of the interruptions come from the same 20% of the
people.
• 80% of the paper filed in our cabinets is rarely referred
to.
• We use 20% of our business tools 80% of the time.
• 80% of our results come from 20% of our efforts.
Separating the vital few from the trivial many is essential to
living a less cluttered life. Pareto’s Principle reminds
us to focus on the 20% that matters. So here is my July tip and
challenge:
Assuming an 8 hour work day, devote 20% of the day--96 minutes--to
your top priorities. If possible, spend the first 96 minutes of
the day on the 20% that produces 80% of your results.
What do you think will happen? Whether you are running a business,
a household, or both, “Pareto thinking” can pave the
way to a more productive and satisfying life.
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