The Ultimate Achievement Formula
Pareto Principle
Source: The Millionaire Real Estate Investor by Gary Keller
There is an amazing principle in life that when fully understood will probaly change your life forever. It's called the Pareto Principle or the 80:20 Rule. This universal truth was originally discovered by the Italian economist Vilfredo Paredo in 1906 when he noted that 80 percent of the farmland in Italy was owned by 20 percent of the population. Pareto, also an avid Gardner, subsequently noticed that 20 percent of the pea pods in his garden yielded 80 percent of his harvest. This was all the validation he needed to launch an intensive study into this amazing consistent theory that states that 80 percent of our results will come from 20 percent of our actions. I personally believe the 80:20 Rule is the best kept, underutilized "achievement formula" in business. Richard Koch, in his ground breaking book The 80/20 Principle, describes this rule as "the principle of greatest outcome for time and effort expended." Most people believe that time and effort alone deliver results, and, while this may be true, the 80:20 Rule teaches us that time and effort on the 20 percent that really matters will deliver 80 percent 80 percent of the results we seek.
When we are focused on the 80 percent that doesn't matter, we tend to get 20 percent of the results we want. The truth is that when our actions are not focused on the 20 percent that matters, the results we really want usually don't show up. Doing a lot of things is never a substitute for doing the right things.
Pareto Principle
Source: The Millionaire Real Estate Investor by Gary Keller
There is an amazing principle in life that when fully understood will probaly change your life forever. It's called the Pareto Principle or the 80:20 Rule. This universal truth was originally discovered by the Italian economist Vilfredo Paredo in 1906 when he noted that 80 percent of the farmland in Italy was owned by 20 percent of the population. Pareto, also an avid Gardner, subsequently noticed that 20 percent of the pea pods in his garden yielded 80 percent of his harvest. This was all the validation he needed to launch an intensive study into this amazing consistent theory that states that 80 percent of our results will come from 20 percent of our actions. I personally believe the 80:20 Rule is the best kept, underutilized "achievement formula" in business. Richard Koch, in his ground breaking book The 80/20 Principle, describes this rule as "the principle of greatest outcome for time and effort expended." Most people believe that time and effort alone deliver results, and, while this may be true, the 80:20 Rule teaches us that time and effort on the 20 percent that really matters will deliver 80 percent 80 percent of the results we seek.
When we are focused on the 80 percent that doesn't matter, we tend to get 20 percent of the results we want. The truth is that when our actions are not focused on the 20 percent that matters, the results we really want usually don't show up. Doing a lot of things is never a substitute for doing the right things.
