Importance of time management skills and the implementation of pareto principle

 The 80/20 Rule of Time Management

There is an important principle known as 80/20 rule or the pareto principle. The idea was formulated by the Italian economist and sociologist Vilfredo Federico Pareto.

The principle states that, for many events, roughly 80 % of the effects come from 20 % of the causes. It’s an uneven distribution that can be found in countless life and business situations.

Practical examples of the Pareto principle would be:

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

80% of your profits comes from 20 % of your products or services.

80 % of decisions in a meeting are made in 20 % of the time.

Fixing the top 20 % of the most reported bugs also eliminates 80 % of related errors and crashes.

 You wear 20 % of your clothes 80 % of the time and so on. 

The Pareto principle in time management states that 80 % of results will come from 20 % of your effort. Consequently, being aware of the Pareto principle can mainly help us set the right priorities. 

It can help us to focus on activities that will have the biggest impact in our business and personal lives.

Examples of the 80/20 Principle

As mentioned, this concept would ultimately be observed as having far-reaching applications and implications, across society, business, and even nature. Some well-known examples include:

➡️20% of your investments produce 80% of your growth

➡️20% of your customers generally represent 80% of your sales

➡️20% change in behavior produces 80% carbon footprint reduction

➡️80% of customers only use 20% of a software’s features