Thoughts of Prabhu

Applicable not only for Business but also for us in our life!!!!!

Its very much essential for someone to know what pareto’s law is, if you want to to be an achiever or a leader.

Many of us don’t know how to become a great from good because we don’t know how to prioritize things.if you want to prioritize yourselves in order to be more productive and successful you should know whats pareto’s law is and how to use it.

According to Wikipedia Pareto’s Law or Pareto’s Principle is defined as

“The Pareto principle (also known as the 80-20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.^[1][2]

Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.^[2]

It is a common rule of thumb in business; e.g., “80% of your sales come from 20% of your clients”. Mathematically, where something is shared among a sufficiently large set of participants, there must be a number k between 50 and 100 such that “k% is taken by (100 − k)% of the participants”. The number k may vary from 50 (in the case of equal distribution, i.e. 100% of the population have equal shares) to nearly 100 (when a tiny number of participants account for almost all of the resource). There is nothing special about the number 80% mathematically, but many real systems have ksomewhere around this region of intermediate imbalance in distribution.^[3].

Even though this rule is mainly used for understanding the efficiency of the business,on my view this can also be used in estimating ones efficiency in our personal life too.

i experience this rule in almost all my personal endevours.

20% of my efforts in handling relations helps me in handling 80% of people.

20% of my time spent with my family gives 80% of happiness to them.

20% of my priorities produce 80% results.

20% of my food gives 80% of energy.

it goes on and on……………………….

So,how to make use of it in our personal life???????

prioritize your things.

if you know how to prioritize your life,then life becomes simple.you can accomplish the maximum once you complete your 20% priorities.

Try applying this rule and check the results!!!!!!!!!