Pareto's 80:20

Pareto's Rule, I encountered first time in 2004 December, during my training at Mysore.

The Rule Says: 80% of effects are caused by 20% of causes.

I believe 80:20 holds good for everything: Job, Love, Life, and Marriage everything on earth runs basically on Pareto's 80:20 principle.

A glimpse at the rule:

The principle was suggested by management thinker Joseph M. Juran. It was named after the Italian economist Vilfredo Pareto, who observed that 80% of income in Italy was received by 20% of the Italian population. The assumption is that most of the results in any situation are determined by a small number of causes.

It really doesn’t matter what numbers you apply, the important thing to understand is that in your life there are certain activities you do (your 20 percent) that account for the majority (your 80 percent) of your happiness and outputs.

Love this rule, it’s interesting and you can get run a successful business just by analyzing all problems using this basic rule.

80% of business comes from 20% of customer.

80% of a manager's interruptions come from the same 20% of the people.

80% of a problem can be solved by identifying the correct 20% of the issues

80% of advertising results come from 20% of your campaign.

80% of an equipment budget comes from 20% of the items

80% of an instructor's time is taken up by 20% of the students

80% of benefit comes from the first 20% of effort

80% of customer complaints are about the same 20% of your projects, products, services.

80% of network traffic stays within the LAN while 20% needs to cross the backbone.

80% of our personal telephone calls are to 20% of the people in our address book .

80% of our shipments utilize 20% of your inventory.

80% of sales time is spent on 20% of the customers, who may not be the profitable 20%

80% of the decisions made in meetings come from 20% of the meeting time

80% of the outfits we wear come from 20% of the clothes in our closets and drawers

80% of the traffic in town travels over 20% of the roads

80% of what we produce is generated during 20% of our working hours

80% of your annual sales come from 20% of your sales force

80% of your future business comes from 20% of your customers

80% of your growth comes from 20% of your products

80% of your innovation comes from 20% of your employees or customers

80% of your profits come from 20% of your customers

80% of your staff headaches come from 20% of our employees

80% of your success comes from 20% of your efforts

80% of your website traffic comes from 20% of your pages 

Reverse all these are they are also true

20% of customers give you 80% of business. (May not be true always.)

20% of issues create 80% of problems.

20% of campaigns give 80% of advertising results.

And so on…

So, finally the rule is completely dependent

To start living 80/20 today you have only to do one thing – focus your energies on what you enjoy.