Pareto Principle Increased Productivity Through The 80/20 Rule

Pareto Principle

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The Pareto Principle has been used by many entrepreneurs and businesses across the globe as a means of increasing productivity and prioritising workloads. This concept was first noted by Vilfredo Pareto who whilst in his garden in the late 19^th century made an observation that a small amount of garden peapods were responsible for the production of the majority of peas.

The Pareto Principle was named after the Italian economist Vilfredo due to his observations in 1896. The principle itself revolves around the idea that the majority of occurrences 80% derives from 20% of the causes. Pareto through his work was able to showcase that around 20% of Italian residents owned 80% of the land.

Pareto Principle The Method

This method has been seen in many business operations i.e. the majority of sales from a company come from 20% of their customers. The 80/20 principle is a general measure and some cases may differ. However some companies have incorporated this method into their working practices.

Many business leaders and managers use the 80/20 principle when managing workloads. This concept allows individuals to order the most important tasks that their daily routine in an office for example may require. The top priority tasks will amount to around 20% work which will produce 80% of the results. This type of methodology is highly useful in helping increase productivity in the workplace.