The 80 /20 Principle

Applying the 80/20 Principle to our thinking can help us make smarter, faster, more intuitive decisions. The 80/20 Principle (also known as the Pareto Principle) is pervasive in our world:
• 80% of traffic jams occur on 20% of roads.
• 80% of beer is consumed by 20% of drinkers.
• 80% of classroom participation comes from 20% of students.
• 80% of profits come from 20% of customers.

In most situa¬tions, you can gather 80 percent of the relevant information in the first 20 percent of the time available. Generally, the remaining 20 percent of the data (which would take the remaining 80 percent of your time to obtain) would not substantially improve the quality of your decision. Your intuition is good enough to organize the data and fill in the gaps.

Specifically, here’s how you might apply the 80/20 Principle to your next big decision. First, identify the top five pieces of information you need to make the decision. Then, decide which four of these five are highest in priority. Once you’ve gathered this information, you will have roughly 80 percent of the information you need, and the remaining 20 percent is less important. Now, harness all of your experience and your intuition to fill in the blanks and make a great decision-even faster!