Definition: There is an inbuilt imbalance between causes and results, inputs and outputs, and effort and reward.
Reference: Vilfredo Pareto, 1897 discovered the patterns underlying the 80/20 Rule, or Pareto Principle. Found that the majority of income and wealth in 19th century England went to a minority of people.
Reference: George K. Zipf in 1949 discovered the "Principle of Least Effort", that around 20 percent of a resource accounted for 80 percent of the activity related to that resource.
Reference: Joseph Moses Juran, 1951, the Quality Control Handbook described how the 80/20 principle could be applied to industry to root out quality faults and improve reliability by focusing on a vital few variables.
Reference: In 1963 IBM discovered that 80 percent of a computer's time is spent executing about 20 percent of the operating code.
Insight: A minority of causes, inputs, or effort produces a majority of results, outputs, or rewards. Equally the majority have little impact.
Insight: You can use the 80/20 Principle in life to become happier by focusing on what matters.
Insight: Businesses can use the 80/20 Principle to become more profitable by focusing on the most valuable customers or products.
Insight: Complexity is costly.
Insight: A few things are always much more important than most things.
Insight: Progress means moving resources from low value to high value uses.
Insight: Big wins start small.
Insight: The majority of achievement and happiness takes place in 20 percent of our time.
Insight: A few key decisions have the biggest impact on our lives.
Insight: We are much more productive at some things than others.
Insight: Time management assumes we know what is and is not a good use of time, but using the 80/20 rule, this is not a good assumption.
Principle: Look for short cuts.
Principle: Strive for simplicity.
Principle: Use the least possible effort for maximum results.
Principle: Be selective.
Principle: Strive for excellence in few things, rather than good performance in many.
Principle: Delegate to specialists where possible.
Principle: Only do what you enjoy the most and best at doing.
Principle: Only play the games where winning matters.
