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WHAT IS 80/20 RULE AND, HOW CAN WE CAPITALIZE ON THAT?

What the heck is 80/20 Rule anyway?



I have learned something that changes the course of procrastination


So for those unfamiliar with 80/20 rule as known as Pareto Principle, allow me to elucidate it is the law of the vital few or the principle of factor sparsity. It essentially states that roughly 80% of the effects come from 20% of the causes, mindboggling it is right. I was amazed when I first came to know about this.
It isn't just some theory on paper that we are supposed to agree, it applies to everything that is happening around us.

 Here are few instances

  • 80% of the global economy is owned by 20% of its population, same goes for individual countries, don't believe me? let me demonstrate

  • 80% of sales come from 20% of your customers, ever been to a gas station? you will see plenty of vehicles coming for petrol refill as compared to vehicles coming for diesel refill, and of those vehicles coming for diesel refill, most of them are Trucks and Buses which takes diesel in huge quantities. Hence it is safe to assume that 80% of sales that a gas station makes comes from 20% of its customers i.e diesel customers. same goes for every venture, that is why customer relationship management is one of the most crucial function that there is. Satisfying your 20% of customers is a smart move obviously because losing 20% of your customer base (that accounts for 80% of your sales) to your rivals, is a huge misstep which could also lead to bankruptcy.

  • 80% of GDP is contributed by 20% of its population: Everyone is aware of the gross domestic product, it essentially means the total amount of goods and services produced by a nation in the span of a year. Speaking of India who do you think comes under the 20% bracket? It has to be Ambani, Birla, Tata, ITC etc These are the entities accounting for 80% of GDP.

At this point, you probably must be wondering as to how can we particularly capitalize on Pareto Principle, by merely knowing this fact. Here's how.

By now I have elucidated how important 80/20 rule is and how entities are already leveraging it.

 Here's how you can leverage it too, first of all, identify 80%  of your activities and their implications as well as 20% of your activities and their implications. 

 This will help you eliminate the activities that are not having any productive outcome, for example eliminating activities like scrolling through your social media feed or stalking people's profile, feeding on data that in no way will further your career.

Bottom line, focus on the 20% that will result in 80% of your productivity. Procrastination cannot be eliminated altogether. Priorities are what would come in handy, procrastinate on 80% of the futile activities but don't take 20% of fruitful activities for granted. 

❝ Make every waking hour account for 20% of your activities which would result in 80% of your productivity ❞.

Read also:
The Law of Reciprocity

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