What is the Pareto Principle or the 80/20 rule?
The Pareto principle is otherwise known as the 80/20 rule. In recent times, this concept has regained much interest due to the written works of Richard Koch on the application of this principle to different aspects of life, work or business.
What the Pareto principle states is that 80 percent of the phenomena or results are accounted for by 20 percent of the causes: the phenomenon of having a small number of causes creating a large percentage of the impact. The law of the vital few and the principle of factor sparsity are other terms that have been coined and have taken on the same meaning.
History of Pareto Principle
The Pareto principle was named after an Italian economist, Vilfredo Pareto. The 80/20 rule first originated from his observation that 80 percent of the income in Italy was generated by 20 percent of the Italian population.
In quality control management, a system or a process is first studied, reviewed and then refined. The 80/20 rule is often applied during the review stage when core processes crucial to production and ensuring acceptable standards and quality are identified.
Pareto Principle as a Way of Life
Do you wake up each day and go through the things you need to do in your mind? The bills that are due, the client presentation to clinch the big deal, the talk with your boss about your promotion besides a dozen other tasks requiring your action.
The 80/20 rule shows us how we can live our lives more simply and effectively. Thereby encouraging us to cut out the deadwood and remove the miscellaneous and unimportant things from our lives.
The 80/20 rule points to the way we can determine our focus and concentrate our efforts to achieve the goals we’ve set. Imagine 20 percent of what you did with your time and money generating 80 percent of the results you want. Reorganise your life by focusing your time and energy on the 20 percent of the activities that are important. We all have limited resources. Let’s get the most out of it.
The 80/20 rule reminds us to prioritize our lives and place emphasis on the vital few. Work on the 20 percent which will give you 80 percent returns. Take a moment to review your life and find out which are the impactful 20 percent.
Some examples of the 80/20 rule:
- 80 percent of your work performance comes from 20 percent of your work activities.
- 80 percent of your social activities involve 20 percent of the people you know.
- 80 percent of what you usually wear makes up 20 percent of the clothes you own.
- 80 percent of what you normally eat is 20 percent of the cuisines and dishes you’ve ever tried.
The 80/20 rule for Starting a New Career
So what are the 20 percent actions that will get you the 80 percent employment leads? Various 80/20 trends are observed in the pursuance of new careers. Here are two 80/20 rule examples and recommendations.
- 80 percent of your eligibility for the job comes from 20 percent of your resume.
Be sure to impress your prospective employers with the first page of your resume. Decide on the content strategically. What is it about you or your experiences that would catch the attention of the recruitment personnel? Mention your attributes and past achievements and highlight them there. Increase your chance of being shortlisted.
- 80 percent of your overall impression during an interview comes from the first 20 percent of the time.
First impressions do count. The first 5-10 minutes during your interview really does influence how you would be remembered. Put on your best smile and show a sincere personality. Arrive early for your interview. Decide what to
wear and dress accordingly by taking reference from the professionals in your chosen field.
Lastly, what are the 20 percent activities that have produced the 80 percent employment leads in your job search? What channels of job postings have yielded responses? Which are the job positions that you have been shortlisted for? Take time to reflect on the activities that are producing more results. Do more of them.
Profile
Marilyn Chee is a freelance consultant specialising in Life coaching, Career coaching, optimization of self-potential and corporate dynamics. As a trainer and speaker, she conducts workshops on effective communication, complaint management, conflict resolution, customer service and life purpose discovery. For more information, email Marilyn at
leyichee@yahoo.com
