How Pareto Principles Increases Your Productivity

Every one love to be more productive. This is because it increases  income and standard of living. In the 20^th Century there was a research that will open your eyes on how you can be more productive. The outcome of this research was published before you were born.

In 1906, Italian Economist Vilfredo Pareto noted that 80% of Italy's land was owned by 20% of the people. He developed an interest in this ratio, seeing it in everything. For example, he observed that 80% of the peas in his garden came from 20% of his pea plants.

The 80:20 ratio of cause-to-effect became known as the Pareto Principle.

Pareto principle is a forecast that 80% of effects come from 20% of causes or actions.

Therefore to apply this to productivity we need to focus on the 20% of causes of actions that gives us 80% effect or result. Lots of persons spend lots of time on activities that do not impact on their productivity.You can see that though researched many decades ago it still relevant today.

We can expand the application of these principles to common business examples that can assist you to understand the Pareto principle which includes

Projects

1. 80% of the value is achieved with the first 20% of the effort

Project teams commonly report that a task is almost completed after a short time. A long time may pass after that before they report any further progress.

2. 80% of project politics come from 20% of your stakeholders

Political struggles often originate with a few of your stakeholders.

Program Management

1. 80% of problems originate with 20% of projects

Some projects are far more problematic than others.

Management

1. 80% of work is completed by 20% of your team

The observation that there is often a wide performance gap between your top performers and the rest of your team.

Technology

1. 80% of software problems are caused by 20% of bugs

The observation that most problems are caused by a handful of serious bugs.

2. 80% of customers only use 20% of software features

Most users don't use power features. In many cases, they find power features to be annoying (e.g. complex interfaces).

Sales & Marketing

1. 80% of sales come from 20% of your clients

Many businesses are dependent on their largest accounts.

2. 80% of sales come from 20% of your products

Product diversification may have limited impact on your business.

3. 80% of sales come from 20% of your salespeople

Killer salespeople aren't easy to find.

4. 80% of your complaints come from 20% of your customers

This is commonly cited as customer service rule of thumb.

Wealth Management

1. 80% of wealth is owned by 20% of people

Pareto's 1906 observation that 80% of Italy's wealth (land) was controlled by 20% of people has held up extremely well. Today, 20% of the world's population controls 82.7% of the wealth.

General

1. 80 Percent of success is showing up

-Woody Allen

2. The idea that much of success is jumping through the hoops. It has a grain of truth to it. If you consider that "showing up" is 20% of effort — it's an example of the Pareto principle.

, The application of these principles means that you have to look inwards. In your personal life, you have to look at 20% of your activities that gives you 80% of your result. Extend it a little further you will find out that 20% of your time gives you 80% of your output or income.

You also need to identify, look after or take good care of 20% of your staff that may be generating 80% of your income. 

It also means that you have to give special attention to 20% of your customers or clients that are giving you 80% of your sales.

Furthermore, you need to focus on the 20% minimal time that gives you the greatest output or result. Once again Focus!. Focus !!Focus!!! on that 20% and see how you can be more productive today.

Prosperity Through Productivity is not a theory. It is something you can apply in your daily life. It is something that once you are let in, the course on “Prosperity through Productivity” you will see the impact on your income.

Thanks for Your Time and Attention

Your Productivity Coach

Dr Chris Egbu FCP

Director-General

Centre For Productivity-Nigeria