80/20 Rule application
finds clutter

That is, until I seriously considered and applied the Pareto Principle, also known as the 80/20 Rule. In 1897, economist Vilfredo Paredo discovered that 80 percent of the wealth of a country was controlled by only 20 percent of the population.

This imbalance, also known as the "Significant few versus the trivial many" is practically a universal principle that has applications in business and personal life.

Some examples of the 80/20 imbalance are:

» 80 percent of dollar sales come from 20 percent of the customers or 20 percent of the products.
» 80 percent a company's sales come from 20 percent of the sales staff.
» 80 percent of the time, we retrieve only 20 percent of what's in our file cabinets.
» 80 percent of the time, we wear just 20 percent of what's in our closets.
» 80 percent of the time, we use just 20 percent of what's in our kitchens.
» 80 percent of the time, children play with just 20 percent of their toys.
» 80 percent of volunteer work is done by 20 percent of the volunteers.
» 80 percent of crime is committed by 20 percent of the criminals.

Now, the ratio might not be exactly 80/20, but 85/15, 90/10 or 95/5. The point is there is a great imbalance between the significant few and the trivial many.

I was happy to read that the Police Department applied the 80/20 Rule several years ago when there was an outbreak of car thefts. They realized that certain rings were responsible for the majority of the thefts, and focused on rounding them up. By getting the significant few thieves (hard-core repeat offenders) off the streets, they stopped the majority of thefts. Using the 80/20 Rule significantly increased their effectiveness.

In what ways can you apply the 80/20 to your life and work? Here are a few ideas:

1) Messy desk? Realize that 80 percent of what's on your desk probably doesn't need to be there and that only 20 percent are important action papers. By getting rid of the 80 percent that needs to be filed or tossed, you will be able to focus on the remaining 20 percent and get things done.

2) Bulging files? Realize that 80 percent of the time, we retrieve just 20 percent of what's in our filing cabinets. Gain space by purging papers that are never or seldom needed or retrieved.

3) Computer novice? Realize that 80 percent of the time, we use just 20 percent of the programs, so concentrate on learning well those few programs you use.

In my next column I'll share more practical applications of the 80/20 Rule. In the meantime I encourage you to discover how many ways the 80/20 Rule applies to your life. It will be time well spent!

See you in two weeks!