Today I want to explore a quick tool called an 80/20 analysis that can help you achieve better results in a shorter period of time.
The 80/20 analysis is based on the Pareto Principle. This principle was named for Vilfredo Pareto, who found in the late 1800s that 80% of land in Italy was owned by 20% of Italians in the same way that 80% of the peas produced in his garden came from 20% of the peapods. This finding was one of many analyzing inequality and examining how the few end up with so much in our economies.
From this and similar findings of the tilting of economic benefits, Pareto decided that democracy was an illusion and a ruling class would always emerge from the 20%.
In modern parlance, this extreme conclusion has been ignored and the Pareto Principle has become more of a rule of thumb applied to a wide range of areas.
While my interest in politics and economics would push me to examine the implications for modern income inequality and the policy proposals to address it, this blog is about providing tools and information that is helpful to individuals.
So instead, we’ll be looking at the modern version.