Have you ever noticed how some people, successful people, often seem to be less stressed and seem to have more time on their hands despite the fact that they get through more work? Somehow, they manage to focus on the key essentials of whatever they are doing. Well, they may be applying the Pareto Principle. The what?
Otherwise known as the 80:20 rule it was named for the Italian researcher Vilfredo Pareto who, in the late 19th Century, discovered that 80% of Italy’s land was owned by 20% of the population. Allegedly he also found that 80% of the peas he collected form his garden came from 20% of the pods he collected!
Subsequently many other examples of the basic principle have been highlighted, including:
- 80% of a company’s profits come from 20% of its customers
- 80% of a company’s complaints come from 20% of its customers
- 80% of a company’s profits come from 20% of the time its staff spend
- 80% of a company’s sales come from 20% of its products
- 80% of a company’s sales are made by 20% of its sales staff
Now this is simply a rule of thumb, a helpful heuristic that gets you focussing on the important stuff. It’s not even necessarily and 80:20 division, maybe 95% of your sales income comes from 5% of your customers. They don’t even have to add up to 100, maybe 90% of your accidents come from 4% of potential causes.
The point is, and I wish I had known this when I was starting out, is that you need to find the crux of the problem or task you are facing and apply most of your effort to that. Prioritise the important bits and the bits that are easy to resolve and avoid the trap that so many under-performers fall into of making excellent the enemy of good.