Make this rule become an automatic part of your thought process and
your actions. It will help you understand the often small difference
between
success and failure, productivity and frustration, happiness
and agony. It’s so simple, it’s deceptive.
What is the key to your suc-
cess? Maybe just a little more training. Maybe a slightly better method
of planning. Maybe just overcoming one tiny bad habit. Maybe all of
these and more. Each change alone may be almost inconsequential, but
when
added up, a host of small changes can lead to incredible results!
The 80–20 Rule (The Pareto Principle)
Another rule that you can apply to make a difference in how well you
organize and manage your priorities is the 80–20 Rule, also known as
the Pareto Principle.
Victor Pareto was an Italian economist and sociologist at the turn of
the 20th century who studied land ownership in Italy.
Pareto discov-
ered that more than 80 percent of the land was owned by less than
20 percent of the people. As he studied other things that people
owned (including money), he found the same principle held true:
20 percent or less of the people always ended up with 80 percent or
more of whatever he measured.
The most astonishing revelation about the 80–20 Rule is its corollary:
If 20 percent of activities are producing 80
percent of the results, then
the other 80 percent of activities are only producing 20 percent.
Remember: To apply the 80-20 Rule to managing your priorities,
remind yourself that 20 percent of the activities on your list are going
to produce 80 percent of the results and payoff. Your question must
constantly be, “Which activities are part of the 20 percent?”
But don’t
get too hung up on statistics, especially misleading ones.
An ex-partner of mine once noticed that 45 percent of the books
published one year made most of the profits, so he instructed every-
one to just publish the 45
percent of books next year that would make
money. Think about it.
Chapter 2
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How to Organize Your Studying
25