Vilfredo Pareto, the Italian economist, discovered the 80/20 principal in 1897, which is now referred to as Pareto’s rule.
- He discovered that 80 % of the output results from 20 % of the inputs
- 80 % of the consequences result from 20 % of the causes
- 20 % of the customers contribute to 80 % of growth
- 20 % of services account for 80 % of turnover
- 20 % of employees account for 80 % of productivity
- The opinion of 20 % defines the society
- The output of 20 % of the population defines the economy of our country.
This 80/20 rule has acquired a new meaning in today’s business.
This could be a life-changing rule.
Most of the organizations are obsessed with working with under-producers and non-performers to improve their productivity.
They spend 80 % of their time in improving the average or below average employee. This is colossal waste of time, as there is very little improvement noticed by this exercise.
At the same time, top performers go unattended and their performance is taken for granted.
The easiest way to lose your top performers is to ignore them in favor of “ mass of under performers”.
The new 80/20 % thinking is the secret of achieving more with less.
Focus on strong performers and make them stronger.
Start celebrating exceptional productivity; give them all the support they want.
Go for excellence in a few stars, instead of wanting to improve average performance in many.
Don’t waste efforts on 80 %, which will yield very little in return.
Transform your thinking.
Revamp your outlook. Think outstanding end results.
Allocate your resources from unproductive “trivial many” to productive “few stars”.
Your effectiveness will depend on how you manage and control this 20 %.
Focus on most productive 20 % in everything in life.
You will achieve most results from least efforts.