Has it ever occurred to you that only 20% of what you do is probably producing 80% of the results you want to achieve?
This is what the Pareto Principle is all about. It is a concept originated by Italian Economist Vilfredo Pareto in the 1900s when he discovered that 80% of the wealth in Italy was found in only 20% of the people. Pareto tested the concept in other areas of life and realized that the principle applied to all other areas of business or activity.
Here's the hack:
Understanding the essence of the principle is the main key thing, and then applying that in every area of your life.
If you are in business, you will realize for example that 20% of your clients are providing your company 80% of your revenues. Or that 20% of your sales staff is contributing 80% to your sales. Also, that 20% of your products is the source of 80% of your revenue. Knowing the 20% in any aspect of your life or business or activity is your guide in determining which areas to focus on or where to invest your efforts.
If you then wanted to increase sales, perhaps you should incentivize that 20% of your clients that are contributing the most to your revenues, as these might result to even more revenues from them.
Knowing who among your sales staff is contributing 80% of your sales will help you decide which ones to reward, to keep, or to promote.
If your business was strapped for cash and needed to make wise investments on products you can keep selling, then the 80/20 rule easily helps you make the decision on which products must be kept.
Apply the 80/20 rule in your life today and see what new things you might discover.