Many people want to do the job effectively. But often people spend a lot of time on nonsense. The Pareto method will help to cope with the problem. He will teach you how to save your time, effort and money.
History of creation
The Italian economist Wilfredo Pareto invented the method back in 1897. But the Pareto method received practical application only in the second half of the 20th century.
It is believed that the idea came to the Italian economist while working in the garden. He drew attention to the fact that about 80% of peas grew by 20% of pea pods. After which, he began to think about the country's economy. It turned out that 80% of wealth has 20% of people. After going through a lot of data, Pareto found that such a factor is relevant for any economic system at all times.
Despite the fact that Pareto became the creator of his technique, he could not give her a complete look. Only in 1947, a business consultant J. Juran tested the methodology in practice and became convinced of its effectiveness. However, Juran wished to name the technique in honor of its creator.
The technique gained widespread popularity only in 1997, thanks to the famous book by R. Koch. It talked about how more chores work, making a minimum of effort.
The essence of the law
The Paretto principle says that 80% of success depends on 20% of actions. This will seem unfair, because people are used to cliches. Every customer is important for stores, business must be given 100%, and there can be no small things in business.
The modern rhythm does not allow to pay due attention to all aspects. Therefore, the Pareto principle teaches correctly prioritize. Pareto took the 1960 presidential election as an example. At this time, Kennedy and Nixon fought for the post. The latter decided to go around all the states of America, while Kennedy chose only the most populous from them, and, as you know, he won.
How to apply in life
This method is effective in all areas from time management to financial management.
Communication
Highlight 20% of people who bring you 80% of positive emotions. Communicate with others to a minimum. This principle applies to social networks.
Finance
Pay attention to 20% of purchases that affect 80% of your budget. Analyze your spending, think about how you could save for an investment.
Time management
It was noticed that 30 minutes of continuous work on one task turn out to be more productive than a ten-minute work with switching to different tasks. Find out at what 20% of the time you are most productive. For such a period, and assign the most important things.