The 80/20 rule, also known as the Pareto principle, states that 80% of outcomes come from 20% of causes. It suggests focusing efforts on the 20% that provides 80% of the results. Specifically, identifying the key triggers or most important customers that generate most income and focusing resources on them, while reducing efforts on the remaining 80% that provides less value. Applying the principle across personal relationships, work, business, and more can help maximize productivity and results.

1. 80-20 Rule – The Pareto Principle!
The 80/20 principle talks about an inherent disparity between cause & outcome and effort & results. It
explains that a minority of causes, i.e. 20%, effort, lead to a majority i.e. 80% of the rewards. To use the
80/20 rule, an individual should identify his or her current prospects and exploit them to its potential. This
rule helps you identify the triggers allowing you to utilize the maximum power to the most dynamic forces
and banishing any negative influences.
To harness the power of the 80/20 principle in your personal life, the two things you should do are:
• Identify key happiness triggers (20%) and
• Ditch the activities (80%) that provide little or no satisfaction
Some ways where you can apply the 80/20 principle:
• Foster important relationships
• Focus on memorable moments in your important relationships
• Read few and important books
• Let go of unused stuff
• Learn to use the tools you need the most
• Do away with meaningless activities
• Concentrate on your strengths
• Save for major expenses
• Do away with unproductive sources of income
• Make most of your productive time or condition
If you view your business from the 80/20 rule, you’ll realize that a handful of customers account for the
major part of your income. These customers are long term users who benefit from your services.
To apply the 80/20 rule at work, find products or services that generate the most income (20%) and let
go of the remaining (80%) products or services that provide secondary benefits. As a manager, you
should work hard on essentials that work for you. That is, you should spend your time attending to those
business segments that make the most of your core skills and leave the tasks that are beyond you to
other people (20%). By letting go of bad clients and focusing on selling and improving service to the best
clients, your business will flourish.
The message of the 80/20 principle is simple—focus on activities that produce the best outcomes for you,
professionally and personally.
Do share your thoughts on the same.
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