The Pareto Principle aka the 80/20 Rule

Named after economist Vilfredo Pareto, the Pareto Principle states 80% of results are from 20% of causes which implies only a small amount of the minority is actually driven by the majority. This disproportionate principle is often viewed from the people standpoint, i.e., 80% of the work is completed by 20% of the people. So what about the remaining work and/or people? Well, this is where life is not fair. Equal distribution is a myth, much like the term “balance”.

Businesses would lead us to believe that rewarding the 20% encourages the remaining percentage to do better. No such evidence exists. As some are more motivated by consequences, it is difficult to tell if these are positive or negative consequences. Nonetheless, it can be quite frustrating to be the 20% completing 80% of the work while the remaining workforce contributes little. Wealth distribution was Pareto’s basis for this principle, which relied on statistical tools. Today, many believe the Pareto Principle is manipulated and, therefore, not the universal principle originally touted.

One area where the Pareto Principle is applicable is time management. For example, working for 40-45 mins, then taking a 15-20 min break. Yes, I know it’s not 80/20, work with me here. Most training curriculums mimic this style because studies have shown the attention span is approximately 11 minutes and taking a 10 min break every 60 mins encourages physical and mental reprieve.

I won’t say this one is the most interesting. However, I will say it’s the most common (to me). In a rapidly changing society of differing generational norms, I was raised to work hard, to own my behavior and mistakes, and to strive for the top. It does not seem this way anymore.

More to come!

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I ask you –

Without adding “but” or “because”, ask yourself – are you the 80% or the 20%?

(The post Expand Your Mind, pt 3 – The Pareto Principle first appeared here at Running on Fumes.)

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