The Pareto Principle

Posted by davidluiz in On Business and Finance

The Pareto principle, also known as the 80-20 rule (the law of the vital few and the principle of factor sparsity) states that for many events, roughly 80% of the effects come from 20% of the causes (As stated in the Wikipedia, the free encyclopedia).

This principle has also been applied to many morel areas of life outside business. In recent times I’ve been wondering why in most cases 80% of the effects come from 20% of the causes.

It really amazes me when decisions are taken based on this rule. In business it will be great and fine to do that but in dealing with individuals and people in general, the application of this rule, in my opinion would be detrimental to the peace of any society. This is because the decisions that will be made by the leadership of the society will be based on the 20% cause, which in most cases are not pleasant causes. So the majority of the society is subject to the effect of the actions of the seemingly vital few (as portrayed by the principle).

I have been in situations where the pleasant deeds of 80% of the populace is acknowledged but still, vital decisions are made based on the misdeeds of the 20%, and in every way I’ve been trying to understand this concept, to me it sometimes comes across as wicked. At other times, I just wonder why the unpleasant 20% should determine the turn of events in a society with a pleasant 80% doing all things as expected.

I’m yet to understand the concept as it relates to human coexistence, I hope someone reading this will help me understand it. I want to know why the unpleasant deeds of a 20% should keep me out in the cold, looking for where to sleep, in a place where I have paid fully for proper accommodation. I wonder why I have to obey rules that were made as a result of the unpleasant deeds of the so-called vital few.

If the indiscretion of a number of people affects the majority, how do you think the majority will react to this; the situations discussed here are just a few out of many. I have always thought that individuals are to be judged based on their actions and not on the actions of some other individuals. I guess I’m wrong, going by the 20-80 rule. It is really annoying to accept this fact, difficult to comprehend and unimaginable, but nevertheless very true.

I write this out in the cold, in a society with a lot of accommodation, for which I paid. In my final year, I have to go home because it’s an holiday and when I don’t go home I get thrown out of a legitimate accommodation (if it is considered that way), because of instructions that have stemmed from decisions made as a result of the indiscretion of a few. As I try to understand why. I found out that in man is a great selfish tendency to protect his head and keep himself or herself at arms-length from any trouble. As long as I have covered my tracks and my bases, closing all lose ends then it’ll be fine, not considering the other people involved…

And to know that some people actually see sense in all this and can really cope with it is pathetic.

I thank God that regardless, I still maintain my joy and still grow in grace and wisdom, learning to know what to do, how to do what I have to do, and when to do it. These are the greatest lessons I have learnt from adverse situations. Please, I want to hear form y’all on this, I want to know your opinions, the lessons you’ve learnt in such situations – if you have ever been in such – and then projecting into the future to determine the steps to be taken to ensure a better tomorrow. It is our responsibility to change what we don’t like or appreciate.

I sincerely hope and pray that the fear of the Lord is increased in the lives of as many as remain in our society, and that His divine grace for patience and forbearance is increased in us, such that the peace this society needs to function is not threatened. If you would like to contribute to the discussion on this topic, please click here to visit our Political and Leadership Forum with the Topic: The Pareto Principle.