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  • Writer's pictureThe Original Folks

EP 10: Pareto Principle 80/20

Hosts: Jade and Deniece


In the final episode of the first season of the podcast, Jade and Deniece discuss “the Pareto Principle” , also known as the 80/20 Principle”, and how it can be applied in different facets of life from personal lifestyle to business and social practices.



Episode Timeline:

[01:52] Deniece recommends the book "4 Hour Work Week" by Timothy Ferriss

[02:25] Jade and Deniece encourage listeners who have a hard time identifying them by voice, to listen to more episodes so it is easier to know who is talking.

[06:10] Today's episode is a productivity hack, to manage your time and combat procrastination. The focus is the “Pareto Principle” (the 80/20 principle) by Vilfredo Pareto.

[09:27] The 80/20 principle is a term for a discovery by Vilfredo, an Italian economist who noticed that 80% of the wealth and income was produced and possessed by 20% of the population. He also noticed this pattern even in nature, 80% of his peas were produced by 20% of the plants. More significantly, 80% of the results you want are coming from 20% of the time and effort you are spending. Also, 80% of revenue in a workplace is brought in by 20% of the workers.

[11:05] Discussing the application, there are 2 happiness questions; first, which 20% of sources are causing 80% of your problems and unhappiness? Identifying this can help you realize that it is not so difficult to make the necessary changes to be happier in life.

[16:45] On a macro level, it can be said that 80% of the world's problems are being caused by 20% of certain factors.

[19:00] The second happiness question: Which 20% of your sources are resulting in 80% of your desired outcomes and happiness? For Jade, spending quality time with people makes her happy while for Deniece, 20% of her friends are responsible for 80% of her happiness, which she agrees with because most of her friends are just acquaintances.

[26:10] To apply this practically in our lives, consider your day-to-day activities like emails, phone calls, texts, group chats, or your to-do list.

[28:58] If you're frustrated because you're always busy and rarely getting things done, the solution is not to just become more efficient. Efficiency is creating 500 filters and labels to process the 1000 daily emails, 90% of which are not important. Effectiveness, on the other hand, is only checking and responding to emails that matter the most and delaying or eliminating what matters least. Deciding what matters most can be done using the 80/20 principle.

[33:57] Only 20% of your to-do list are actually the items that you should focus on. Ask yourself while going down the list, "What will happen if you don't do each of the items on the to-do list?" Based on the gravity of the consequence, you will be able to prioritize which one deserves more attention.

[41:34] For bosses, if you look at your accounts, who are the 20% of your clients who are bringing 80% of the revenue? You can focus on that 20% and find more clients like them. This means less work and more revenue.

[42:32] Exploring your answers to these kinds of questions can lead to breakthroughs as they force you to use your imagination and push yourself beyond your comfort zone. When you ask the questions over and over, your mind will continue to surprise you with insights, and slowly but surely, the answers you come up with will change your relationship to work and to time.

[44:50] This episode is the last in season 1. Jade and Deniece appreciate listeners and encourage them to send in particular topics they would like to be discussed on the podcast in the next season.

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