In 2006 I read Tim Ferriss’ book ‘The Four Hour Workweek‘ . I think I liked the title. That book has been a life-changer for me.

It is often said: the difference between where you are now and where you will be in 5 years is shaped by ‘the books you read and the people you meet‘. This was definitely the case with this book.

One principle from that book particularly sparked my brain.

It’s called the Pareto Principle.

Vilfredo Pareto was an Italian mathematician who lived around 1900. He discovered that 80% of the land area of Italy was owned by less than 20% of the people.

This triggered him to investigate proportions.

8020 Pareto Findings

– That 20% of the roads receive 80% of the traffic

– That 20% of your plants yield 80% of the harvest

– 20% of your clothing, you wear 80% of the time

But it’s the same with ratios of cause and effect:

– 20% of the staff produces 80% of your output

– 20% of your products generate 80% of your profits

– But also: 20% of your customers cause 80% of your headaches

– 20% of the things you do account for 80% of your happiness

– At a party, 20% of the people drink 80% of your beer

– 1% of the fighter pilots in World War II were responsible for 40% of the enemy kills in air combat

– In Vietnam, around 50,000 rounds were fired for 1 enemy kill. US Snipers managed it with 1.33 rounds per enemy kill.

– 20% of your investments, the best ones, will yield more than 20% of your return

The 8020 Rule

This is called the Pareto Principle or 80/20 Rule. By the way, it doesn’t have to be exactly an 80/20 ratio or that the total of the two must exactly add up to 100. As shown by the example of 1% of fighter pilots and 40% of kills.

Let’s look at this from a productivity standpoint. This is particularly interesting for entrepreneurs.

20% of your activities/time in a day account for 80% of your desired output.

Unfortunately, there is also a downside to this medal………..then 80% of your activities/time only accounts for 20% of your output. Welcome to most Social Media, gentlemen!

To be continued……