Thursday, September 20, 2007

The Pareto Principle

The Pareto Principle states that 20% of your priorities will give you 80% of your results.

The Pareto Principle is also referred to as the 20/80 principle.

For example; 20% of your time produces 80% of your results.

20% of the people control 80% of the wealth.

20% of the products bring in 80% of the profit.

20% of the people contribute 80% of the money.

20% of the people in a group make 80% of the decisions.

10 comments:

Cheetarah said...

Very basic marketing principle usually found in MP papi and we always equate it to profit but ur take isnt bad either but it begs me to ask what ails you papi?

OUI C'EST MOI said...

Is this a theory or fact?

catwalq said...

I need 20% of all the money I have to generate 100% of all the things I need...
so I can really start saving

atinuke said...

My brother was telling me about this in December.
It makes sense. Just like I was told recently that only 3 million Nigerians can actually be qualified as "wealthy". That is wayyyyyyy lower than 20%.

I think there's something to it.
Maybe God-ordained or something. "Everyone has their place in society" type of rationale.

Or what do you think?

Babawilly said...

20% of the dramatists produce 80% of the plays, abi?
Only joking; more like 2%

laspapi said...

@ cheetarah- we haven't finished our ICC talk. Actually sitting atop the theatre pile now and musing on the odds of the things yet undone.

@ oui - see cheetarah's comment. If you look at your affairs closely, I bet you'll be able to apply the principle.

@ catwalq- trust you to turn it upside down, catwalq. How are you, love?

@ atinuke- I don't know if up to 3 million people in Nigeria can be termed, wealthy, atinuke. I think we all (Nigerians) should strive to fall into the group of the productives, "the poor will always be among you" is what the good book says but why assume my name is on that roster?

@ babawilly - you're right, just 2% or less (of dramatists) produce the dramas but 20% of my own crew do 80% of my work. 80% of drama earnings go to 20% of the producers (I'm getting confused now)

~Mimi~ said...

lol..that sounds like it makes sense...and its true 20% of a group of people make decisions..

how r u papi?

catwalq said...

me, I am surviving jare.
Managing and holding on for dear life to God's robes...
so, I went to see Raise the Red Lantern this weekend. I am going to marry Zhang Yimou (director Hero, Red Sorghum, Raise the red lantern, Curse of the Golden Flower etc) but he does not know it yet. I don't care that he is the same age as my father....I am hoping that like fine wine he got "better" in "that" department with age cos in his films, he only gets better and better.
*phew* rant over. So, how are u?

...toyintomato said...

..basically, you have to learn to utilize minimum resources to generate maximum benefits..kappish.

..with that, i should be able to utilize 20% of my abilities to generate an 80% husband..hahaha
..my mum aka Mrs lecturer will call it laziness.

atinuke said...

Not 3 million households but 3 million people.
If you understand what I mean (wealth within a family will count all the people in that family)

Anyway, it's probably not the case but it's a rough estimate of 3 percent of our population. I rounded down. Waaaayyyyyy down.

Will discuss with you the yardstick they used.

(How are you btw?)