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Issue 14: Make Better Decisions with the Pareto Principle

April 14, 20241 min read

"Focus on the vital few, not the trivial many."

-Italian economist Vilfredo Pareto

Welcome to our our fourteenth edition!

Today, we’re exploring the Pareto Principle for effective decision-making, also known as the 80/20 rule. This principle suggests that in many situations, roughly 80% of the effects come from 20% of the causes.

For example, you might notice that 80% of your team's results come from 20% of the team, or conversely that 80% of the trouble comes from 20% of the team.

5-MINUTE STRATEGY

  • Identify a goal or problem you're currently facing.

  • List all the tasks or factors related to this goal/problem.

  • Highlight the tasks or factors (roughly 20%) that will likely lead to 80% of your desired outcome or solution.

  • Focus your efforts on these key tasks or factors first.

Why this matters: Applying the Pareto Principle helps you leverage your efforts more efficiently, focusing on the most impactful activities to achieve your goals faster and more effectively.

Next week's preview

Stay tuned for a deep dive into the SWOT Analysis, a strategic planning tool that can help you make more informed decisions by evaluating the Strengths, Weaknesses, Opportunities, and Threats related to any situation or project.

Until then,

Asia

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Pareto Principle80/20 ruleEffective decision-makingFocusing effortsImpactful activitiesStrategic planningLeveraging effortsGoal achievementEfficiency in leadershipPrioritizing tasksItalian economist Vilfredo ParetoTeam productivityTeam performanceTime managementLeadership strategies
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Asia Bribiesca-Hedin

Asia Bribiesca-Hedin, MBA, MPA, CPC, CPCC, Principal Coach and CEO of Bridgewell LLC Professional Services

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