The Pereto Principle

Larry Janesky: Think Daily

In 1897, Italian economist Vilfredo Pereto noticed that 20% of the population controlled 80% of the wealth and income.  Being a curious economist, he then noticed that 20% of the pea pods in his garden yielded 80% of the peas.  Continuing his research he found that 20% of the criminals committed 80% of the crimes.  20% of the beer drinkers drank 80% of the beer.  20% of the clothes one owned were worn 80% of the time.  20% of married people accounted for 80% of the divorces.

Continuing Pereto’s observations we see that 20% of the drivers cause 80% of the accidents.

20% of your carpet has 80% of the wear.  20% of the streets get 80% of the traffic.

20% of clients contribute 80% of the profit.

This is now known as the Pereto Principle.

80% of the results come from 20% of the causes.

Prioritization based on the Pereto Principle is the master skill of high achievers.

80% of the Time and Effort (many trivial tasks) get 20% of our results, while…..20% of the Time and Effort (the few vital tasks) get 80% of the results.

What is the 20% that gets the 80% for you?

Focus there.

Jeff Russell

Sales talking 20% of the time while listening 80% of the time is better for sales numbers. I talk 20% of the time when I’m with my daughter, Liza. 😂😊

Don Marshall

That is also known as the 80-20 Rule

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