LIFE IN FOCUS

The 80/20 Rule or The PARETO PRINCIPLE Named after Vilfredo Pareto, an Italian economist, the Pareto Principle simply observes that for many phenomena 80% of the results come from 20% of the effort. This principle, often used in business, helps in determining where to best focus your efforts in order to obtain maximum results.    For example,    80% of a business’ profits come from 20% of its customers or clients. 80% of a business’ profits come from 20% of its services and/or goods. While at its inception the Pareto Principle, or more commonly known as the 80/20 rule was applicable to economics, it has since grown to include other factors extending beyond the world of business.  Think about how the Pareto Principle plays out in your everyday life.  80% of the time, you wear only about 20% of the total clothes in your wardrobe.  80% of the time, you interact with only about 20% of your friends and relatives.  80% of the time, you frequent approximately only 20% of your local eateries.