The Pareto principle, the 80/20 rule the law of the vital few and the many trivials

He Pareto principle, Also known as the rule of 80/20, it is a theory maintains that 80% of the consequences of a situation or system is determined by 20% of the causes.

Content

• What establishes the Pareto principle?
• Origin of the Pareto principle
• Pareto principle applications
• Utility of the Pareto principle in mental health

What establishes the Pareto principle?

The Pareto principle was described by the economist and sociologist Vilfredo Pareto, which specifies an unequal relationship between entries and exits. The principle establishes that 20% of what enters or is invested is responsible for 80% of the results obtained. In other words, 80% of the consequences are derived from 20% of the causes; This is also known as the "Pareto Rule" or "Rule 80/20."

More generally, The Pareto principle is observation (no law) that most things in life are not distributed uniformly. For example:

• 20% of the consequences derive from 80% of the causes
• 20% of workers produce 80% of the results
• 20% of customers create 80% of income
• 20% of software errors cause 80% of software failures.
• 20% of investors remain with 80% of the profits obtained in the stock market, and this in turn has its origin in 20% of the values ​​of an individual portfolio.
• And so on…

The principle does not stipulate that all situations will show exactly this relationship, it refers to a Typical distribution. Generally the principle can be interpreted as A minority of causes derive in most results.

Origin of the Pareto principle

In 1906, Pareto observed that 20% of the population in Italy had 80% of wealth. He also realized that this relationship can be found in many areas of the physical world, so he theorized that he could indicate a Natural Law.

In the 1940s, Pareto's theory was formulated by DR. Joseph Juran, an American engineer widely recognized for his contributions in the QA. It was dr. They swear who decided to call the proportion of 80/20 "the Pareto principle."According to him, applying the Pareto principle in the metrics of a business, will help us separate the" little vital "things (80% of the causes) of the" very useful "(20% that generate the largest result or impact).

Pareto principle applications

The Pareto principle assumes that the more frequently an action occurs, the greater the impact on the result will be.

At the same time, this principle also describes the "Pareto efficiency" which is a balance in the distribution of resources in such a way that, within a given system, an individual or entity cannot obtain a benefit without worsening the situation of any other person or entity, and this is known as a Pareto improvement. According to this concept, it is desirable. When additional Pareto improvements cannot be made, it is said that the Pareto efficiency.

Another application of the Pareto principle is the 96 minutes rule, which maintains that intellectual workers must devote themselves to their most important tasks during that period of time every day to improve productivity.

Utility of the Pareto principle in mental health

This is actually an applicable principle numerous areas of life, not only to work and the company, we can extrapolate it to the economy, politics, but also to our thoughts and attitudes.

Meditate a bit in the following:

• What 20% of my life's things produce 80% of my happiness?
• What 20% of my life are responsible for 80% of my problems and unhappiness?

How long do you waste thinking the worst? Feeling fear? Looking for the tragic side of events? Remember that constancy in thoughts, whether good or bad, will have a huge influence on how we feel.

As the principle says we can conclude that with only 20% our effort we can get to obtain a results of 80%.

There are people who think that what counts is the number of hours invested in something, such as when someone becomes obsessed thinking about a problem and believes that from thinking about it will get to make the best decision to solve it. But in reality these ideas end up being our Mental traps. The quality is much more important than the quantity, we must better choose the words with which we speak, our thoughts, our habits, our relationships, our work, our environment ... a small step can be the beginning of everything.

Let's try focus our energies on the things that will really contribute something to us. Sometimes we lose too much time in whims, objectives, relationships or jobs that generate 80% of our unhappiness. You have to be wise enough and at the same time brave to know when to retire, there are things that are not worth being forced.

For example, do not invest 80% of your money in garments that you will use rarely. Look for those that you will really use. Dedicate your quality time to those people who make you feel good, not those who do not bring anything or almost anything, etc.

Let's carefully choose people and things that produce 80% of our happiness, Let's learn to control our impulses a little better, to replace our negative thoughts that only make us feel bad.

Apply the 80/20 rule in your personal life, in your studies, your work ..