Wednesday, April 14, 2010

Pareto Effect

Today I am paying lip service to what is called the Pareto effect or the 80/20 rule. This is an important rule that took me a few months to properly grasp. The gist of the 80/20 rule is that 20% of an input is responsible for 80% of the output. What Pareto noticed was that 20% of the people in Italy own 80% of the wealth. This was similar to all the countries at the time. Moreover, 80/20 is the minimum. The ratio ranges to 95/5 and even 99/1.

What's important is that the things you do have disproportionate results. Ceterus paribus, a hour of work can achieve more depending on what you are working on. Look for the important, high-yielding work and avoid monotonous drone work (or skim through it as quickly as possible). Ignore the minutiae and look for things that pull the most weight.

From my experience, this is much easier than said than done. I learned about about a year ago and have recently gotten the hang of it.

The biggest obstacle for me was dealing with that tiny voice that says, "what are you doing?! you won't be prepared if you don't do x,y,z." Once you take the leap though, it's all downhill from there. Just sit back, watch you're productivity skyrocket, and find something to do with your new found time.

No comments:

Post a Comment