BUSINESS & IT

Why You Shouldn’t Use The Pareto Principle!

A time management tip

Introduction

In my article “TOP 3 Time Management Approaches” I wrote about the following methods:

• Eisenhower Matrix
• Pomodoro and 60–60–30 Method
• Eat The Frog

There are of course more than three helpful methods for time management.

As I mentioned at the end of my article, you were maybe looking for the Pareto principle. It is one of the most common time management approaches.

I will cover that method in this article. I don’t recommend it — but first, let me explain the principle.

Definition

The Pareto principle is a well-known technique to increase efficiency and productivity. It is also called the 80–20 rule. Here’s why: It says that with 20 percent effort, you get 80 percent of the results.

This time management tool is about prioritizing your tasks according to their importance.

Everything critical to the outcome or revenue gets done. Everything that is not of central importance is not processed further.

The background is the problem that many people often get lost in details. They occupy themselves with things that do not lead to success.

80 percent is regularly unnecessary effort. The results can for sure be refined, but that is perfectionism.

Small effort — big effect: No matter how hard someone tries, it is often not 100 percent of the effort that determines 100 percent of the success. Usually, it is much less. According to Pareto, only 20 percent.

Examples

• Internet: 80 percent of all online traffic is concentrated on 20 percent of websites
• Traffic: 20 percent of roads carry 80 percent of the traffic load
• Warehouses: It is not uncommon for 20 percent of products to take up 80 percent of the available space. [1]

Summary

You should first decide which tasks are most important for the result. Then you can focus on the essential tasks and not get lost in unnecessary details.

What are the difficulties?

The Pareto principle is often misinterpreted. This can lead to the benefit being lost, or even harm productivity and self-management.

Here are possible dangers [1]:

1 - Confuse effort and return

A classic mistake is to add the two numbers to 100 percent. This is wrong!

The Pareto principle simply says 20 percent of the effort can be responsible for 80 percent of the return.

However, effort and return are not the same.

2 - Ignoring 80 percent

Another misinterpretation is to invert the causality of the rule.

The Pareto rule focuses on the efficient 20 percent. The goal is to improve one’s productivity. That doesn’t mean the other 80 percent is generally disposable!

There are tasks to do that aren’t particularly productive. For example, gathering information or answering e-mails.

You can’t drop them. But with the Pareto Principle, you learn to focus on the most important ones when time is short.

These are the reasons why I don’t recommend it.

The Pareto principle is too often misinterpreted. It could also tempt people to use it as an excuse for laziness.

Although one should not get too lost in details, accuracy and a certain level of detail are often important. Especially when it comes to major tasks, you should get everything done.

The Pareto principle can of course help to prioritize. Nevertheless, one should not leave out the remaining percent.

After all, your boss is paying you to do all the work.

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source: [1] https://karrierebibel.de/pareto-prinzip/