Good morning, friends!
Today I want to tell you about the Pareto principle 20/80 (or as it is called still, Pareto's law, Pareto's rule, the rule 20/80). I would like to focus your attention on this subject as she explains very many things which occur in everyday life in any, absolutely different spheres of human activity, including, of course, and in the financial sphere which will interest us first of all.
As the small introduction I want to tell that the Pareto principle 20/80 has very significant effect on formation of all vital and working processes of any successful person even if he about it also doesn't suspect. And if the person knows how Pareto's law works, and consciously puts it into practice, it considerably increases his chances of success. At the same time, to use Pareto's rule 20/80 on full power very few people manage.
Pareto's law first of all should be applied in all fields of management (including in management of finance, in business, in human resource management), in trade and network marketing, when planning working hours, etc. So, that such rule of Pareto?
Pareto principle essence.
The Pareto principle 20/80 means that only the insignificant share of the used efforts can provide very effective result and vice versa. Why 20/80? Because, according to Pareto's rule, 20% of any actions provide 80% of result, at the same time other 80% of actions provide only 20% of result.
Of course, it is necessary to recognize that in today's practical application I governed Pareto figures of 20% and 80% will be very conditional and can fluctuate in this or that party. For example, this ratio can be 10/90, 30/70, 25/75, etc. However the approximate weight of the importance of these or those factors, the general Pareto principle at the same time will be kept.
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