80/20

So according to economists, theorists, scholars in fact anyone who knows anything about anything - The Pareto principle is an imperative concept, by which dreams, entrepreneurs, business wo[men], you and me are made from. Management consultant J Juran, suggests that the we must understand and observe the following principle, in order to motivate us to reach our optimum. If reaching your ultimate is important to you, read on.

The 80/20 rule is not a mythical law or magical concept that will catapult you instantaneously to success, however, knowledge of the existence and function of this principle, should motivate you to desire to be part of the winning club. Yes the 80/20 winners club.  According to Forbes 2011, Carlos Slim, Bill Gates, Warren Buffett are all contributing members of this elitist club, with the richest 20% of the world's population controlling 82.7% of the world's income.

Economist Vilfredo Pareto is renowned for the incredible economic/management principle, also referred to as the '80/20 Rule' or 'The Law of the Vital few'. The 80/20 Rule means that in anything a few (20 percent) are vital and many (80%) are trivial. In order words 20% of your work colleagues will contribute 80% of the results to your organisation and in correlation, those 20% will inherit 80% of the benefits [recognition, financial rewards, promotions, etc]. Or in order to simply witness 20% results/growth or productivity, 80% effort must be expended. These examples have been the subject of discussion for decades as theorist uncover new ways and ideas to encourage/motivate us to success. 

Do you crave to stand out from the crowd?
Are you one of the 20% that will contribute value to our nation?

Do you desire to be part of the winning club?

Been part of the winning Pareto Club - requires simply one constant! Can you guess? ‘Hard work’, pure elbow grease. In order to win a place in the winning 20%, you must be willing to put in 80% effort in comparison to your counterpart.

We have all come across the famous statement before - "If you are going to do anything, do it well", however, according to the Pareto Principle… if you are going to do anything… do it exceptionally well, because the rewards are then yours.

Just a few example of how the Pareto principle contributes to every aspect of society and business.

1. Wealth - A few % of the people on earth hold most of the wealth.

2. Marketing - A few key customers account for most of a Company’s sales.

3. Population - A few % of countries have most of the world’s population.

4. Biological - One biological species (insects) accounts for the bulk of the world’s biological mass.

5. Planet Mass - One single planet (Jupiter) contains the bulk of the solar system mass around the sun.

6. Inventory - a few % of the total catalogue items account for most of the inventory $’s in a warehouse

Do everything with the view of been the best and winning, get competitive - so that you can excel – the Pareto principle/ 80/20 rule, should serve as a daily reminder to focus 80 percent of your time and energy on the 20 percent of you work that is really important.

Don’t just work hard – work smart! Join the 80/20 club