S.Ashwini, IOCL

sashwini@indianoil.in

What is the Pareto Principle?

The Pareto principle, also known as the 80/20 rule, is a theory that states that 80% of outcomes come from 20% of the inputs. The principle is named after Italian economist Vilfredo Pareto, who first observed the phenomenon while studying income distribution in Italy. He noticed that 80% of the country’s income was owned by 20% of the population. Pareto theorized that this ratio could be found in many areas of life and might indicate a natural law.

The Pareto principle is used in many fields, including business, economics, problem-solving, inventory management, finance, and project planning.

The principle can help us to identify where to best spend our time, money, or energy, determine achievable goals, outline specific tasks to reach goals and stay focused on what makes the most impact. Here are some examples of the Pareto principle in action:

  1. 20% of employees produce 80% of a company’s results.
  2. 80% of revenue comes from 20% of clients.

How does it apply to the Workplace?

In the workplace, this principle works its magic like a magic trick you’ve seen a million times but still can’t figure out. The 80-20 rule isn’t just a productivity hack; it’s a way of life. It explains why the busiest employees seem to be those who do the least, while the ones who do everything get barely a mention. So, let’s break down this mysterious yet utterly genius law of work.

The 20% Who Do Everything (And Somehow Make It Look Easy)

We all know these folks. The 20% of employees who seem to be doing everything. They’re the ones who write reports, handle customers, clear the approval notes, fix the printer when it jams, and fix everything that’s broken in a jiffy. They’re the ones you always see working long hours, running from pillar to post, and replying to emails faster than you can say, “I’m just finishing my coffee.”

They’ve figured out that if you focus on the 20% that matters, you can coast through the rest of the day without breaking a sweat. They’re not running around like headless chickens; they’re doing what gets results. Meanwhile, the rest of us are just trying to figure out why we’re still copying and pasting the same 10-slide presentation from last year and submitting the same MIS report from the last month to a new recipient.

The 80% Who Are “Busy” (But Aren’t Actually Getting Anything Done)

Then we have the 80%, those of us who are “busy” all day long but seem to have nothing to show for it. We spend hours in meetings, participate in brainstorming sessions (which are mostly just an excuse to pretend we’re solving problems), and attend workshops on how to improve our meeting —but in the end, we’ve got not a single result to present. We have meetings about meetings, which will discuss the meetings that need to happen next quarter, and so on.

We’re always working hard. It’s as if we’re all running in place on a treadmill of inefficiency, placing placards and banners, only to end up at the same spot we started—except now we have a backache from all that unnecessary effort.

The seasoned veterans of the organizations also come under 80%. They have worked in the corporate trenches long before the term ‘work-life balance’ was even invented.

They have survived countless office politics, watched the evolution of digitization, and probably know every shortcut on a computer that no one else dares to use. But when it comes to doing actual work, they have a very unique style. They masterfully act like they’re doing the work without actually doing it.

When a task is assigned, the senior employee doesn’t break a sweat. They have seen it all before. They know how to make it seem like they’re handling something incredibly complex and urgent. So, what’s their secret?

You’ll walk into the office, and there they are, diligently flipping through some notes or frantically searching the mailbox. Some papers are actually relevant, some are just old notes from a meeting in 2001, but the magic is in how they flip through it in between phone calls. With every shuffle, they give the impression of working on something crucial. Maybe they’ll even stop, scratch their chin, and mutter something profound like, “No one was able to solve this for the last 13 years, then why me?”

You’re sure they’re solving the crucial problem with those papers, but in reality, they’re just reorganizing a pile they’ve already organized five times before. It’s an act, but it’s so well-rehearsed that no one questions it.

Meanwhile, the 20% heroes will somehow single-handedly organize an entire department’s budget, meet deadlines, and perform tasks that should take a team of 50. But don’t worry, they are always supported by the ‘80%’—those helpful individuals who provide endless feedback, brainstorm in meetings that go nowhere, and provide unwavering support by deciding on the post-meeting snack.

Conclusion:

At the end of the day, the Pareto Principle is more than just a mathematical concept. It’s a reflection of how we really get things done in the office. So, if you’re part of the 20% who actually contribute to 80% of the results, give yourself a well-deserved pat on the back (and a strong cup of coffee). And if you’re part of the 80%, just remember that you’re probably doing more than you think—especially when it comes to perfecting your well-rehearsed ‘seeming busy at work’ behaviour.

And kudos to the bosses who get work done from the 80% of the workforce in spite of it seeming like moving mountains.

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