What is the Pareto principle or 80-20 rule?
You can define the 80-20 rule simply as what Wikipedia says
“The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of the causes. Other names for this principle are the 80/20 rule, the law of the vital few, or the principle of factor sparsity.”
In other words, it is a saying that to achieve your goals you have to focus on that 20% i.e. thing, audience, quality, etc to make your 80% fortune.
Pareto principle (80-20 rule)
The man behind this principle is an Italian economist named, Vilfredo Pareto. He introduced this principle in the early 20th century while he was describing the distribution of wealth in Italy.
Pareto got this idea from his garden; One day when he was gardening, he noticed that only 20% of his pea plant was responsible for 80% of peas. On further observation into this distribution and combining it with macroeconomics, he found out that 80% of land in Italy was owned by 20% of the population.
On further observation into different fields like industry, finance, and business he found that his aphorism of distribution really worked.
“80% of the outcome comes from 20% of important work”
Where we can use this regulation?
Some of its variations are:
80% of interaction comes from 20% user-friendliness
80% of revenue comes from 20% of the product in a company
80% of productivity comes from 20% of work you invest your time on
80% of love comes from 20% of little things you do
We can use this concept in-
- Business & Economics
- Personal relationship
Bias in Pareto principle
You should not think like if 20% of things are important then the other 80% of things are not important this causes a false belief. It Is only that you have to give more attention to that small thing that brings you many results at the same time you have to look upon that 80% too.
How we can get better design decisions using this 80-20 rule?
It is just as focussing on essential little things which you will get to know by properly analyzing the whole system from time management to type of customer to financial matter and many more after that find out the most essential element to make fortune.
See only 20% of your feature will satisfy 80% of the customer or audience.
“The unavoidable truth is that you have finite resources to figure out an infinite amount of problems. Figure out what matters most, then invest your time and effort into the key areas that will help deliver the greatest impact.”
How to use this rule?
- Identify all important aspect needed in designing
- Identify the most important ones
- Then point out, focusing on what will satisfy your customer to max
- Brainstorm on how to reduce the time investment on other work (less important ones- 80%)
- Create a plan to do the important works (20%)
Just read it one more time to get the clear idea
Businezvalue was founded by Johnny J Hembrom and his team, an enthusiast in learning business growth and designing.
After failing again and again in his business, finally, Johnny had made lots of fortune and want to help new business people & entrepreneurs, and learn from them.