PARETO'S LAW

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Also known as the 80/20 (or 20/80) Rule, it states that, in general and for a large number of phenomena, approximately 80% of the consequences come from 20% of the causes. This method can serve as a reference to focus on what really matters, on what can give us the most satisfaction with the least effort, without wasting energy and resources on poor results.

Thus, Pareto's Law can be of great use for business management, since identifying the 20% of a particular factor that produces the 80% we want to control, it is possible to know where it is more profitable to put extra efforts to achieve a better result.

The most important thing is to focus efforts and concentration on that 20% of life's activities and situations as this will generally mean that:

• You are doing what you like it (or what you have always wanted to do) or you simply know that it contributes to the achievement of your goals.
• You are performing tasks in which you can be delayed but because they are so essential this does not happen.
• You delegate tasks that are not really that important.

With a little effort and by applying this method, we can save a lot of physical and emotional energy to concentrate on important issues that really enrich our lives.

What is the origin of this rule?

The origin of this principle is to be found in the empirical observation made by the Italian economist and sociologist Vilfredo Pareto (1848-1923) on the distribution of property in Italy. After studying the distribution of property in other countries, he found that it followed the same pattern. After Pareto published this observation, other studies began to observe similar phenomena in their respective fields of knowledge.