Developing competence by Applying the 80/20 Pareto Principle

Applying the 80/20 Pareto Principle is one of the secret ways your could ever do to increase productivity and do more in your day-to-day basis. It is the statistical basis of the nature of distributions of whether your will be successful in a business or any other endeavor your 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, such as business, profession, happiness, life management, skill distribution, IQ distribution, etc.

The Discovery of the 80/20 Principle

In the year 1895, an Italian economist named Vilfredo Pareto found something interesting from his observations about the economic distributions more specifically land owners. 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 are all skewed (left or right depending on the labels), which means there is a disproportionate outcome.

Just look at the graph below, your 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 became a postulate.

US Income Pareto Principle Distribution

US Income Distribution by

IQ Pareto Principle Distribution

Cognitive Ability Distribution by



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

Listing your top 20% goals

Applying the 80/20 Rule is one of the most important things your could do today to improve your productivity, this is the part where you do less and accomplish more within the day.

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 our self 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 your could do in this situation is to evaluate your clients.

Who are the clients that gives your the most profit? If your are able to answer that the next step is to focus in them and outsource or transfer them to other businesses politely so that your will not feel overwhelm or tight in time. 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 your should take attention to because chances are other stuff are 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

You could incorporate the Pareto Principle to your RIGHT and SMART goal setting by doing a very simple exercise that will let your know what are the task your should pay attention to. If your are wondering I have also done this myself, I would never share to your guys what your think is something not of importance.

Let us reinvent the way your 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.

Applying the 80/20 Pareto Principle- Planning

Step 1: List at least the top ten things your need to do or top ten 10 goals your want to achieve today or this week. My list would be down below, I hope your are following with me.

    Learning Italian
    Reading a Book
    Practicing Guitar
    Speed Reading
    Learning To code
    Learning How to Draw

Step 2: Out of the ten your listed, choose your Number 1 priority by encircling it and your Number 2 most important goal/task. This 2 are your top 20% of your life goal or task for the day, this will help your know what is your top end.

Personally this are my priorities at the moment.

    Meditation & (Reading)

Step 3: Now that your know what is 20% of your life then your could proceed into doing them or planning for that goal of yours. I recommend that your follow Brian Tracy 14 day goal challenge or just start your task now.

Step 4: Start today. What your 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 your have in life.

Take 90 minutes of your time to do exactly the first goal your encircled in your paper, assuming that it might just be the most complex task that your have. Time and time again though, it is those kinds that gives the greatest payoff that wheels you to the road of success.

In my case though my meditations will only take about 20 minutes of my time so I could take on Reading before starting out sharing my blogs to your folks.

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

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

When your 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 report on trip meeting.
Effort=10, Result=2, Priority=5
Task 2: Prepare presentation for marketing.
Effort=4, Result=4, Priority=1
Task 3: Call current customer about 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 make up 80% of your success.

Remember the Principle

Start applying the 80/20 pareto principle

A resolve today to action is something that your future self will be thanking yourself for. Act now and see through your thinking and your most valuable tasks. So that your may embark your journey to self-realization and the best self your 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