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The Italian engineer and economist Vilfredo Preto had an observation in 1896 which he named the term as 80/20 principle. He observed that 80% of Italy’s wealth belongs to 20% of its population, while the rest 80% of the population had only access to the remaining 20% of Italy’s wealth.
This observation didn’t stop only till wealth, he observed a similar case with pea pods. Yeah, you heard it right, 20% of pea pods produced in his garden gave 80% of peas. While the remaining 80% were not even in a condition to eat. Similarly, he found this same principle applies to everything in the world.
The principle was referred to by several names like 80/20, the Pareto Principle, etc.
Examples of 80/20 Principle | Pareto Principle Examples
Pareto’s observation was constrained to Italy but it was widely recognised by various people all around the world.
If we take a closer look even in today’s world. We can easily say
- 80% of wealth belongs to 20% of people around the world.
- 80% of success belongs to 20% of people.
- 20% of countries rule 80% of the world
- 20 % of Mobile brands such as Apple, Samsung, OnePlus, etc rule 80% of the Mobile Industry.
- 80% of girls are attracted to 20% of guys or vice versa 80% of Guys are attracted to 20% of Girls.
- 80% of Land belongs to 20% of Countries.
These are just a few of the many examples we can observe in the world. And this makes the principle so withstanding and realistic in life.
Few Applications of 80/20 Principle
Pareto’s principle can be applied in a wide variety of areas that we can’t even think of. Including but not limited to business, personal development, economics, life and much more.
1. Pareto principle in Business
Pareto’s principle in business can help to improve the effectiveness and efficiency of business.
Tasks like Goal setting and prioritizing the task based on its impact as we say 20% of goals will achieve the most results while the rest 80% will have less impact. Similarly, 80% of the company’s revenue comes from 20% of its product and services.
2. 80/20 rule in Time Management
Time management is a skill that we need to develop to focus on the tasks that matter the most and comparatively less on parts that don’t much.
For example, If you know 20% of your work will account for 80% of your outcome, why not focus more on that work than evenly distributing the entire time for each task?
Such planning will be a more beneficial way to manage time and will result in quicker outcomes.
Here we have covered only two applications but I believe you can use your due diligence and apply as per your need.
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