Thursday, May 24, 2012

The 80/20 rule

You may have heard of the Pareto principle (also known as the 80/20 rule or the law of the vital few). This principle states that, for many events, roughly 80% of the effects come from 20% of the causes.

A business-management consultant suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas. It is a common rule of thumb that in business 80% of your sales come from 20% of your customers.

Leadership trainer and author, John Maxwell, has referred to this principle in a few of his books as it relates to business and leadership.

Some other examples of the Pareto Principle are:
  • Reading: 20% contains 80% of the content
  • Job: 20% of work gives 80% satisfaction
  • Products: 20% of products bring 80% of profits
  • Picnic: 20% of the people eat 80% of the food! 
It is also found that in most churches about 20% of the congregation does the work while 80% observes.

In life, you may also experience when you achieve a certain goal; graduate high school, college or other institution, get a job, a promotion, start a new venture or acquire any kind of success that the 80/20 rule may apply in this way. You may want to do the math. When you announce something that you are pursuing or have accomplished you will probably get mixed results for various reasons. Most people will offer their kind congratulations, but may not really believe you will ever make it. Yet, there is the faithful, positive 20% who will be with you, cheering you on all the way to the end!  (These people are sometimes called "parents.")

Our family has referred to the "80/20 rule" so often that we now find it to be humorous and have shortened it to just "80/20" whenever someone is negative in response to any of the type of situations listed above. 

The lesson:
-Be encouraging. Don't be in the 80% or the person who always states the reasons why it cannot be done.
-Be encouraged. If you have set a goal, go for it! Forget the naysayers. They will always be there. Opportunities will not. Carpe diem! Stay in the 20%.

"So speak encouraging words to one another. Build up hope so you'll all be together in this, no one left out, no one left behind. I know you're already doing this; just keep on doing it."
1 Thessalonians 5:9 MSG

-Paula

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