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December 07 , 2004 * Number 5 |
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The 80/20 Rule appeared more than 100 years ago as “Pareto’s Law,” which described the tendency for wealth to be distributed in a predictably unbalanced manner, no matter what governments might do. Economist Vilfredo Pareto recognized that a small portion of the resources applied in any situation tends to yield most of the outputs. In other words, it is likely that some small percentage of your effort leads to most of your results. It is predictable that similar inputs will yield significantly unbalanced outputs. In business, a common statement of the Rule is that 20% of products, customers or employees are responsible for about 80% of profits. While the figures 80 and 20 are just rough approximations, a basic idea is that most of your productivity comes from a small percentage of the time or energy you spend at work. The Rule becomes more compelling when examined in the context of chaos theory, which relies on computer modeling to demonstrate that the Universe isn’t just hopeless disorder. Instead, everything operates according to some self-organizing logic, and patterns play out with a predictable nonlinearity. The theory suggests that life does indeed evolve as a dance that is ever-changing, but with themes, patterns and productivity curves that recur again and again. I still struggle to achieve a grasp of chaos theory and those predictably unpredictable curves. But after 30 years of observation I can say with assurance that the 80/20 Rule does work. For example, when I’m feeling overwhelmed by too much to do, I may get past the crisis by taking a complete break, collecting myself, and asking: what is the 20% that I should focus on, and what is the 80% that I can almost ignore? There is value in the slogan, “don’t sweat the small stuff.” But the challenge may be in deciding what is “small.” Here are a few suggestions for applying the 80/20 Rule:
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Bev’s Tips for a Better Work Life is published on the first and third Tuesday of each month by Beverly E. Jones of ClearWays Consulting, LLC. Bev is a lawyer and former executive who now coaches accomplished attorneys and other professionals to bring new direction, energy and enjoyment to their work lives. |
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Copyright ©2004, ClearWays Consulting, LLC & Beverly E. Jones All rights in all media reserved. However, the content of Bev’s Tips for a Better Work Life may be forwarded in full without special permission on the condition that (1) it is for non-profit use and (2) full attribution and copyright notice are given. For other uses please contact Bev Jones. |
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