The80 20 principleis a valuable concept for time and life management. Known as thePareto Principle, this rule explains that20 percent of your activities will account for 80 percent of your results.That being the case, leaders should change the way they set goals forever if they want to transform their teams and performance.
What is the 80 20 rule?
The Pareto Principle was named after the Italian economist Vilfredo Pareto in 1895. He noticed people in society seemed to divide naturally into what he called the"vital few,"or the top 20% in terms of money and influence, and the"trivial many,"or the bottom 80%.
Later, he discovered all economic activity was subject to this principle: 80% of Italy's wealth during that time was controlled by 20% of the population.
We can take Pareto's 80 20 rule and apply it to almost any situation. Understanding the principle is essential for leaders to prioritize their tasks, days, weeks, and months.
In business, it's essential to strategic planning, which is one of the leadership qualities shared by the world's most influential leaders.
For this article, we will discuss applying it specifically to goal setting and productivity.So, let's begin.
How to apply the 80 20 Rule?
In reality, it doesn't matter what numbers leaders apply: 80/20, 75/25, or even 90/10. What matters is understanding that asmaller percentage of their activities are responsible for their prosperity and success.
Researchers have found that the business world as a whole seems to cohere with the 80 20 principles, but their breakdown could be slightly different depending on their industry, goals, and life experiences. So for starters, leaders should focus less on the specific ratio and more on the cause-effect relationship the Pareto Principle is trying to show them.
To better understand how the Pareto Principle applies to leaders, it's helpful to begin by identifying which areas of their life have an imbalance of effects.
That will help them adjust how their time is spent. Are there specific activities that require a great deal of effort but only produce minimal results? If so, what are they?
Identifying these "productivity gaps" will allow leaders to address what doesn't work and double down on what does.
Numbering productivity gaps should also help leaders identify the things they're good at. To truly master the 80 20 principle, they should seek to identify the critical 20% (or whatever number) of inputs that create the most results.
For instance, it could be the 20% of work activities that generate most of the income or 30% of relationships that bring the most happiness. Once leaders identify activities causing most of their happiness or success, they should focus time on them.
"Double down on whatever works." -Tai Lopez always says.
That is the central concept of the 80 20 principle. It would help if leaders focusedonly on what they are passionate aboutand the activities that produce the highest return on investment.
But even after they've identified their key activities and begun to apply ratios to everything, they may still find it challenging to adopt the 80 20 blueprint. That is often caused by one of the following reasons:
●They are not doing what they're truly passionate about
●They're not devoting enough time to it
●They are letting fear get in their way
It's not always easy doing what someone loves, primarily when we've been taught to go to school and get a regular 9-5 job that pays the bills. That might not sound like a bad gig, but it is usually the source of career dissatisfaction for many people who simply aren't doing what they love.
However, a solution is in sight. It is possible to turn your passion into a career – in nearly every circ*mstance. That said, it's wise to work the way up to this stage, especially if they have financial obligations – as dropping everything isn't realistic for many.
That is probably a good place to mention that fear of uncertainty should not result in you accepting a mediocre life. The 80 20 blueprint will help you overcome fear by showing you what you're good at and how to do more of that thing.
