Italian Economist Vilfredo Pareto in the year 1895 observed that there was natural division in the society between the ‘vital few’ (the top 20 per cent) and the ‘trivial many’ (the bottom 80 per cent). However, more than being a useful way of understanding the society, the Pareto Principle became a critical tool of application.

Most start-ups as well as companies follow the Pareto Principle in determining their tasks. They recognize that 80 per cent of their work will happen in just 20 per cent of the time. But the remaining 20 per cent of the assignments will take 80 per cent of the effort. This recognition helps them not only plan their work but also prior- itize their tasks. It is a core principle applicable to most of projects. Just like in business, the Pareto Principle finds relevant applications in the domain of economics, computing, sports, mathematics, etc.

At a personal level the Pareto Principle is a useful tool in arranging and budgeting our time to our different interests, hobbies, work assignments and social engagements. Every time you plan your calendar, think of the Pareto Principle, that is, think of maximizing 80 per cent benefits by spending 20 per cent of your time. Also account for the un-skippable 20 per cent of the tasks that require 80 per cent of your attention.