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Pareto’s Law
Italian economist and sociologist Vilfredo Pareto, known for
his application of mathematics to economic analysis, developed
a key time management concept. In his first work,
Cours d’economie politique (1896–1897), he published his
famous Law of Income Distribution, a complicated mathematical
formulation that attempted to prove that the distribution
of incomes and wealth in society follows a consistent
pattern throughout history, in all societies throughout the
world. He proposed that typically 20 percent of the population
earns 80 percent of the income and possesses 80 percent
of the wealth.
Today, Pareto’s Law has been expanded into what is
commonly referred to as the 80–20 Rule. Broadly stated, this
important principle says that 80 percent of the results you
achieve are produced by 20 percent of your efforts.
We have learned that Pareto’s Law has relevance to many
aspects of our lives. Look closely at your own life. It is very
probable that 20 percent of your personal relationships bring
you 80 percent of the joy in your life. Twenty percent of your
beliefs may govern 80 percent of your attitudes. And so on.
Pareto’s Law also has relevance to many facets of business.
Typically, 20 percent of your customers will account
for 80 percent of your sales. Twenty percent of your products
will account for 80 percent of your revenues. Twenty percent
of your marketing initiatives will yield 80 percent of your
marketing results. Twenty percent of your employees will
perform 80 percent of the productive work.
What has all this to do with personal productivity? A
great deal. The fact is that Pareto’s Law is one of the most
powerful principles you can use in your efforts to increase