The 80/20 Principle was first discovered approximately 100 years ago by an Italian economist named Vilfredo Pareto while he was studying income and wealth patterns.
He discovered that there was a pattern of “predictable imbalance,” and that by identifying and focusing on the top 20% of our efforts, we can leverage our results in virtually any area of our lives, and vastly improve our effectiveness.
Not long ago, a major insurance company did a study on its sales force to see where the majority of its sales and profits were coming from. Low and behold… 20% Of The Sales Force Produced 80% Of the Profits!
They went one step further, and analyzed the top 20% of the sales force to identify if there was a “predictable imbalance” amongst this highly productive group of people.
Guess what they found? That’s right…
The Top 20% Of The Top 20% Of The Sales Force Produced 80% Of The Profits!
I have personally used the “Pareto Principle” in many areas of my business and personal life, and found it to be an extremely effective tool for determining where and how I should be spending my time and efforts.
I’ve boiled it down to the top 7 ways to use the 80/20 Principle in your business and personal life.