Applying the 80 20 Pareto Principle

Applying the 80/20 Pareto Principle

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Applying 80 20 Principle

Applying the 80/20 Pareto Principle is one of the secret ways you could ever do to increase productivity and do more on your day-to-day basis.

It is the statistical basis of the nature of distributions of whether you will be successful.

In a business or any other endeavor, you will be endowing yourself.

The 80/20 rule fundamentally points out that 80% of your results were made by doing 20% of your job.

After dozens of experiments and studies after its discovery, they found out that it applies in all areas of life.

The Discovery of the 80/20 Principle

In the year 1895, an Italian economist named Vilfredo Pareto found something interesting.

Based on his observations about the economic distributions more specifically landowners.

He noticed that only 20% of the population owns the larger chunk of land and the 80% own a small piece or nothing at all.

He labeled the 20% as the ‘vital few’ and the lower 80% as the ‘trivial many’, that may sound harsh but in reality, things play out like this.

Based on recent studies about creative, cognitive, and income distribution the curve of distribution of the results.

They are all skewed (left or right depending on the labels), which means there is a disproportionate outcome.

Just look at the graph below, you could see that there is a disparity with how both cognitive ability and income is sorted out in the population.

The data suggest that the theory of Vilfredo Pareto has become a postulate.

Income Distribution
US Income Distribution by
IQ distribution of Pareto Principle
IQ distribution from Vanguard

This fact may sound bleak and unfair but the good thing is it applies in EVERYTHING.

In other words, YOU could use this to your advantage to propel yourself to success and to productivity.

The Principles’ Role to Goal Setting and Attainment

Goal Setting
Goal setting

Applying the 80/20 Rule is one of the most important things you could do today to improve your productivity.

We all have the same 24 hours in a day no matter who we are or what profession we have it all comes down to the way we manage ourselves and the time that is given to us.

After all, 20% of our task is the only thing that will actually give us 80% of the results we would want to see.

Take for example your main goal in your business is to increase your profits 2x or 3x, what you could do in this situation is to evaluate your clients.

Who are the clients that give you the most profit?

If you are able to answer that the next step is to focus on them and outsource or transfer them to other businesses politely so that you will not feel overwhelm or tight in time.

The next step is to search for clients that fit the mark with your upper clients and take them in.

It is a smarter way to work but also to know who are the people or geographic you should take attention to because chances are other stuff is irrelevant.

Just as the Harvard Business Review had talked about in their research to gain more productivity and profit.

Goal Setting using the Pareto Principle

Planning using the Pareto Principle
Planning and seeing the bigger picture

You could incorporate the Pareto Principle to your RIGHT and SMART goal setting.

A very simple exercise that will let you know what tasks you should pay attention to.

If you are wondering I have also done this myself.

As part of my philosophy of applying the principles, I try to teach you.

Let us reinvent the way you think and make about your to-do list.

I encourage YOU to do this exercise with me so put out your pen and paper, laptop or phone.

Steps for applying the 80/20 Principle

Steps to success

Step 1: List at least the top ten things you need to do or the top ten 10 goals you want to achieve today or this week.

My list would be down below, I hope you are following with me.

  • Learn to play 5 songs with the guitar in 1 month
  • Build 100 email list for my clients
  • Learn Python fundamentals and create 1 project within 1 month
  • Achieve Beginner Proficiency in Japanese within before December ends
  • Publish 5 articles within December and schedule them accordingly
  • Achieve 1500 wpm reading speed w/ 90% comprehension
  • Start each day by planning
  • Create an effective study schedule for school work
  • Listen to Jim Kwik podcast twice a week
  • Create a custom sock shop using Woocommerce within 5 days

Step 2: Out of the ten you have listed, choose your Number 1 priority by encircling it and your Number 2 most important goal/task.

These 2 are your top 20% of your life goal or task for the day, this will help you know what is your top end.

Personally, these are my priorities at the moment.

  1. Publish 5 articles within December and schedule them accordingly
  2. Create a custom sock shop using Woocommerce within 5 days

Step 3: Now that you know what is 20% of your life then you could proceed into doing them or planning for that goal of yours.

I recommend that you follow Brian Tracy 14 day goal challenge or just start your task now.

Step 4: Start today. What you could initially do to set up yourself for goal attainment is at starting the day with the big frog.

Stop putting your energy on the menial tasks of the day instead train yourself to take on the most important things you have in life.

Take 90 minutes of your time to do exactly the first goal you’ve encircled in your paper, assuming that it might just be the most complex task that you have.

It may be a bit difficult but it is those kinds of tasks that give the greatest payoff.

Your dedication and willingness to prove yourself are the wheels that drive you to the road of success.

Step 5: Sharpen the saw, one thing that distinguishes a winner to a loser is consistency and discipline to follow through.

Achieving anything takes time especially if it is something you could consider your life’s purpose or your main goal to start a business.

“To reach your destination it takes a hundred to a thousand steps before your it takes you there.”

Alternative Strategy to Determine Your 80/20

The other activity you could do instead of identifying your tasks by importance is to identify it instead of the effort needed to accomplish each.

According to the Inc. strategy choose rankings for every task such as follows. .

When you make a “to do” list, prioritize each item by the amount of effort required.

(1 to 10, with 1 being the least amount of effort) and the potential positive results (1 to 10, with 10 being the highest impact.)

“Now divide the potential results by the amount of effort to get a “priority” ranking.

Do the items with the lowest resulting priority number first. Here’s a simple example:

Task 1: Write a report on the trip meeting.
Effort=10, Result=2, Priority=5

Task 2: Prepare presentation for marketing.
Effort=4, Result=4, Priority=1

Task 3: Call current customers about the referral.
Effort=1, Result=10, Priority=0.1

See your new priority-based order? You do Task 3 first, Task 2 second, and Task 1 last–if at all. ”

This way it also ensures your to do the low-effort tasks that makeup 80% of your success.

Remember the Principle

A resolve today to action is something that your future self will be thanking you for.

Act now and see through your thinking and your most valuable tasks.

So that you may embark on your journey to self-realization and the best self you have always envisioned to be.

Comment down below what are your most top 20% priorities in your life and ask me any question that may be bugging your mind.

Along with the Pareto principle, please check out the benefits of Journaling and  Tim Ferriss’ Fear Setting 

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