Tuesday, April 30, 2013
Economist Vilfredo Pareto of Italian descent that propounded what is called “Pareto Principle” in 1895 noticed that people in his society seemed to divide naturally into what he called “Vital View.” The English dictionary defines the word vital as a living organism performing an essential function in the living body while view on the other hand means the act of looking, seeing, observing or outward appearance. When fused together “Vital View” means an essential function in the living body seeing or observing-outward appearance. Vilfredo later discovered that virtually all-economic activity was subject to this principle as well. The principle says that 20percent of your activities will account for 80percent of your results, 20% of your activities will account for 80% of your sales or successes; which would also mean 20% of your tasks will account for 80% of the value of what you do, and so on. This automatically means if you have a list of ten items to do, two of those items will turn out to be worth five or ten times or more than the other eight items put together. Richard Koch researched further which is called a “power law” today and also corresponds to the pattern that 80% of wealth and income went to 20% of the income earners, that 50% belong to 5% of earners, and so on. One tilt that he added to it during “The Progress Conference in South Africa” and that a small proportion of our time accounted for most of our valuable output, and even our happiness. That suggested…time management was beside the point, and that people needed a time revolution-we all needed to change our lives to focus on the best moments and times and make those the core of our lives. Richard asserted further, that people should think about small chunks of time-this week, this year, the years during their whole lives-that have given them more happiness than most of the rest of their time. These he calls “happiness islands” The 80/20 principle says that it is always possible to do something much better with existing resources, or with fewer resources. Progress always comes from a small number of people and teams who demonstrate that the ceiling of previous performance can become the floor for everyone.