Pareto Rule

Pareto Rule

When you start a project, the first thing to do is to take your project plan and see where you can improve the process. If you need to assess the opportunities to enter a new market in one month, you should take your project plan and see which action points you could shrink so that you deliver in three weeks instead. Once you have identified them, see how you can complete these actions more swiftly.

Once you have decided on the end products, the deadline and so on, you need to deliver faster and better. And yes, there are a few things you can do to gain efficiency in your work and be able to over-achieve, making your client or your boss happy.

Pareto Principle, that’s what will help you dramatically grow your business and change your life for ever (Megan Jorgensen). Illustration: © Megan Jorgensen (Elena)

There is a very important tip that you should always keep in mind: the 80/20 rule. The principle was created by the Italian economist Vilfredo Pareto in 1906 when he discovered that 20 percent of the population in Italy owned 80 percent of the land, the same way that 20 percent of the pea pods in his garden contained 80 percent of the peas.

The 80/20 rule, also called the law of the vital few, states that, in many cases, 80 percent of the effects come from 20 percent of the causes.

It is quite likely that this rule applies to your industry too, so do not waste time and efforts, focus on the key elements. Just keep in mind that in any domain, 20 percent of something represent 80 percent of results. You should then concentrate on these 20 percent, as the rest are less significant. Focus on the 20% of distributors who make up 80 of the business, for example.