What is Pareto’s principle?
Simply put Pareto’s principle (also called the 80-20 rule) says that 80 % of the results come from 20% of the causes (more or less).
Now, this is not always accurate. Sometimes it is 70-30 or sometimes a very small no can give a big result.
However, the gist of the rule states that a minority of the causes lead to the majority of the results.
Conversely, the majority of the causes do not contribute much to the result. It means that 80% of the work you put in is only leading to 20% results.
Businesses have been using this in optimizations of inventory and operations for a long time.
You can, however, apply this principle to almost everything.
How can we apply Pareto’s principle effectively in our lives? Well, let’s find out.Continue reading “How using Pareto’s principle can transform your life?”