The Law of 80/20 in Relationships – The Philosophy of Everything
This column examines the 80/20 rule, also termed a Pareto The rule's relationship to Bradford's Law is explored, and some of the research. The 80/20 rule is commonly thrown around in entrepreneurship and business. with his research this “rule” holds true, in a very rough sense, to an 80/20 ratio, role in your happiness and your money is influenced by 80/20 relationships, but it is This was my first introduction to the 80/20 theory, very interesting and I am . The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of . theory, such as for electromechanical energy converters, the 80/ 20 principle The Dunedin Study has found 80% of crimes are committed by 20 % of The Pareto principle is an illustration of a "power law" relationship, which .
The message is simple enough — focus on activities that produce the best outcomes for you.
The stereotype where a creative person, musicians, actors, writers and artists, struggle to get discovered and work long hours on horrible day jobs, often in retail and hospitality, until hopefully they finally break out, get discovered and become famous. The same can be said for entrepreneurs. Only a small sample actually live their passions day in and day out, how they want to and when they want to.
If you want to become one of the special few so you can live your passions on your terms there are a few things you can do. Not everyone will start a million dollar business. The first thing you must decide, and this is often the hardest step, is to determine what it is exactly you have passion for. If you are not sure what your passions are all I can suggest is test yourself.
Most humans are good consumers — we are good at taking inputs. Chances are you can easily rattle off a bunch of things you do enjoy about your life: All of these activities more or less are inputs which means you consume the outputs of other people. If you enjoy listening to music you might also enjoy producing your own music or covering the music industry as a journalist on your own blog.
Only by producing output for other people to enjoy or make practical use of can you expect to convert a passion into a sustainable income. You should understand this already as I suspect the times in your life that you have created something for others or worked on something that benefited other people you experienced the most fulfillment.
Part time work — Part time passion Many people work a full time job and work after hours on a business or hobby or creative talent. You feel like you are getting nowhere fast. This lifestyle is not good for anyone since all the relationships fall into the 80 percent that produce 20 percent of the value.
The 80/20 Relationship Rule
You get very little from it and the people you work for get very little from you. If this currently describes your situation what you need to do is start changing those ratios.
Most people can live off part time work but choose to work more because they want more things. You may see your peers enjoying material goods which creates desires in you. And remember, there are two sides to an equation. Just remember we're all individuals, and what works for one couple might not for another. You and your partner might want to increase your "me time", and other reduce it.
Problems might arise if one of you needs more solo time, and the other is missing being coupled up. If you're out of balance with each other, it might be that, unlike a proved theorem, your relationship may not last forever, unless you're open to talking to each other and finding a happy compromise. No one is perfect, so if you're feeling like something is missing, enjoy some independence and know that finding ways to make yourself happy is a good thing.
I'm not mathematician, but something doesn't add up there.
As with most things in life, rules are meant to be broke. It is important to understand this for several reasons: The more extreme the ratio, then the more at risk the overall business is. Where such a situation exists it is important to realise this - so as to protect the major customer sand to work towards altering the ratio by gaining new customers, so that the business dependence on one or a very few customers is reduced.HOW TO BE PRODUCTIVE - THE 80/20 PRINCIPLE BY RICHARD KOCH ANIMATED BOOK REVIEW
The expression "having all your eggs in one basket" refers to the risk of dropping that one vital basket and losing all your eggs - which in this case alludes to losing a very big major customer which represents a vast amount of business and jeopardizing the entire organization. Every business needs to take extra special care of its major customers, especially when the 'Pareto ratio' is extreme and organizational viability and survival rely on just one or very few large customers.
Streamlining, downsizing, rationalizing, decluttering anything - reducing range, commitments, materials, 'stuff', etc Most organizations and personal lives contain a far greater range of activities, possessions, products, services, suppliers, etc. Organizations and people tend to expand activities, materials, and stuff of all sorts, over time, and all of this 'stuff' and obligations become expensive and cumbersome to keep, especially where there are related costs of maintenance, registrations, training, monitoring, administrating, etc.
The same applies in personal lives. And the same probably applies in many people's personal lives. Analysing these distribution ratios is the first step to streamlining, downsizing, rationalizing, decluttering, etc. In business organizations there are commonly huge cost-savings to be achieved by rationalizing product ranges according to Pareto theory.
What Is The 80/20 Rule And Why It Will Change Your Life
And in personal life there are usually vast space-savings to be made from using the same Pareto principles to declutter wardrobes, shoe-racks, bookshelves, kitchen cupboards, etc.
Pareto theory offers a quick easy way to see clearly what must be retained, and what is unnecessary. So when confronted with any situation requiring rationalization, streamlining, greater focus, etc. This is your starting point. And additionally in organizational Pareto-based change: Ensure proper consultation happens. Communicate and explain clearly to all affected.
Ensure adequate warning and leeway is offered so that people affected by the change can make alternative arrangements. Offer and explain alternatives for options no longer available.
History of Pareto's Principle Pareto's Principle is named after the man who first discovered and described the ' An academic, Pareto was fascinated by social and political statistics and trends, and the mathematical interpretation of socio-economic systems.