How To Use the Pareto’s Principle

Towards the end of the 19th century, a group of economists from the University of Lausanne in Switzerland studied the social inequalities in Europe. Analysing the tax data of several European countries, they found out that in each of them about 20% of the population owned 80% of the wealth.

This discovery was a real springboard for the career of an economist, Vilfredo Pareto, who gave his name to a principle, the Pareto principle, also known as the law of 20-80.

Some examples of the application of this principle:

• to optimize production, some industries in Japan focus on 20% of the causes that generate 80% of production problems;

• customer services of most companies focus on 20% of customers who generate 80% of turnover;

• finance professionals agree that 20% of their investments represent 80% of the benefits.

What does this principle make us understand? The message of Pareto’s principle is that we need to focus on 20% of the actions that lead us to 80% of the results.

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In practice, we must focus on high value-added actions because they are the ones that make us move forward.

This principle is very important because it deals with a precious resource: time.

To avoid being stuck on a goal and slowly losing sight of it, it would be beneficial to use this perspective (20-80).

However, how can we identify what are the essential things to our goal? Moreover, how to choose high valuable actions?

Try to answer these two questions for each action you have planned but are hesitating to take:

1. Is this action vital in moving me towards my goal?

2. Am I the only one who can do this action?

The first question allows you to separate essential actions from those that can wait.

The second allows you to identify what are the actions that others can do in your place and that, therefore, you can delegate.

Once this is done, you will know 20% of the actions you need to take to advance towards achieving your goal.

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Now you could estimate the time required for each action but it is not ideal, because you would end up putting it on your “to-do-list” and you could continue to shift the priority order. Therefore, in the end you would have wasted some time.

Once again you have to ask yourself some questions:

1. What problems are stopping you from really moving forward with your goals?

2. What do you need to do to solve these problems?

3. What are the elements that allow you to understand if the problems have been solved?

You will be surprised to see how well these questions work. The 20-80 rule allows you to focus on actions that have a visible and direct impact. You will see that they will soon become a habit to you, and that you will use them every time you feel stuck with something.

Do you think that the Pareto’s principle is useful for progressing with your goals?

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How to Overcome Difficulties with the Ganbatte

The Japanese people have an incredible ability to recover from catastrophes of any kind. After World War II that left the country in ruins, in just thirty years Japan became the second largest economy in the world, becoming leaders in the electronics sector in the eighties and nineties. How could the Japanese economic miracle happen? The answer has to do with an expression that we should use too: “ganbatte” which means “try your best”.

Here lies one of the differences between the fragility of the Western culture and the resilience of Japanese culture: how they deal with crisis’ situations.

In Japan, when they have to take an exam, they say “Ganbatte kudasai“, which is the best way to tell others to do their best. In this case, there is no external factor on which the outcome of your exam depends on. According to the Japanese, if you try your best, you will get a result, which even if not the best ever, it will be the best for you, because it represents your maximum effort.

Another Japanese saying, also very useful to all of us, is: “if you want to warm a rock, sit over it for a hundred years”, which means that to overcome great difficulties you need to be patient. However, this doesn’t mean sitting down and waiting for circumstances to change, it means actually working to create new situations and opportunities.

The “ganbatte” is present in the individual and collective activities of the Japanese, and it is very much linked to the Ikigai, that is simply the priority around which everything else (often unconsciously) turns.

In 1995, when the disastrous earthquake happened in Kobe causing enormous damages, the slogan that circulated in Japan was: Ganbaro Kobe. The meaning of the message was: strength and courage from all of us; united and with efforts we will get out of this situation.

Later on, in 2011, on the occasion of another great earthquake that caused the nuclear catastrophe in Fukushima, the slogan that encouraged all Japanese was: Ganbaru Nippon! This encouraged all Japanese to join in the collective effort to help all those involved in the catastrophe. A collective effort was required, and this spirit manifested heroically when retired workers from the nuclear power plant, volunteered to control it. The reason presented by those people was that it was better for the radiation to affect people who had already lived a good part of their lives rather than young people with a future ahead.

A good lesson for all of us in these difficult times. We could try to do as the Japanese do by following these four practical tips.

  1. Do and not complain. Don’t complain with your arms crossed: do something. Value your actions, even if they seem of little importance to you, in reality everything you do is important. As the Kaizen philosophy says, modest but continuous progress ends up in a great transformation.
  2. Hope instead of despair. An attitude of hope focused on day after day rather than on “when this will end” helps to keep morale high.
  3. Don’t waste energy. Don’t venture into endless arguments, which get you nowhere. It is necessary to keep all your strengths (mental and physical) to keep moving forward.
  4. Seek the company of enthusiastic people. We are friends by affinity. This does not, however, exclude that we can surround ourselves with people with a ganbatte spirit, who strive to improve rather than seeing only the negative side.

Do you think ganbatte can help you with facing difficult situations?

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Why action without intention is useless?

Intention is powerful energy that allows you to satisfy a need, be it material, relational, emotional or spiritual.

It is a source of positive energy that allows you to create or fulfil a dream.

Many people think that only by taking action you can achieve your goal or get what you want.

However, intention is more powerful than action because it draws its strength from the energy of the universe that sustains action and guides it to avoid you getting lost or exhausted. If your energy is negative, you will not feel satisfied; you will have the impression of swimming against the current of the water.

Action without intention will never get you to your destination.

Give yourself permission to think and dream big even if it seems impossible! Authorize and solicit a pure consciousness that binds you to this universal “I”, where everything is not only possible, but already exists and needs your intention for it to happen.

By positively utilising the power of intention, you will be guided towards the best. If some cards are given by chance, through observation you will be able to seize the most favourable opportunity that comes to you. Try to adapt to unforeseen situations to turn them into opportunities, because it matters more how you react to what happens to you.

Good fortune can be provoked (certainly not for gambling or winning the lottery) and sometimes you have to be brave and reactive to seize the opportunity that comes to you.

Do you know the story of the two mice falling into a bucket full of milk? One of them yells “help, help”, doesn’t swim and drowns. The other swims to stay afloat so fast that it turns the milk into butter and can come out of the bucket!

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Here are four ideas to try being luckier:

  1. Adopt a positive spirit, attitudes and behaviours.
  2. Dream big even if it seems impossible to you, opening the doors to opportunities.
  3. Stop saying “Yes but …” and replace it with “What if …”.
  4. Find a lucky jingle, a tune you like and that works like a bell to regularly connect on the good wavelength. A mantra or a positive affirmation is also fine.

And let things happen!

Do you feel ready to create your intention?

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