Focus on what matters, abandon everything else

In 1896, the Italian economist Vilfredo Pareto discovered that 80 percent of Italy's land was owned by just 20 percent of the population. This discovery led him to investigate whether this unequal distribution existed in other areas, and he soon learned it was a widespread phenomenon.

Dr. Joseph M. Juran, a prominent figure in the field of quality management in the mid-20th century, further developed and popularized the concept. He recognized that the principle applied beyond economics and land ownership and was a universal principle that could be used to understand various phenomena in business and management.

Juran coined the term "the vital few and the trivial many," indicating that a small percentage of causes often lead to a large percentage of effects. He used this principle to focus on quality control, suggesting that addressing the "vital few" quality problems would have a significant impact on improving overall quality.

The Pareto Principle, also known as the 80/20 rule, should be applied to your business and life. You’re likely doing too much and should focus on the few things that have the biggest impact.

Bill Canady recently wrote a book worth reading on this subject titled "The 80/20 CEO." Despite the abundance of information available on the Pareto Principle over the years, I was pleasantly surprised by the insights I gained from Canady’s book. It's definitely worth a read.