Pareto Principle in Three Lines.

A cold and wet Monday in the hills of Kiambu and welcome to another short edition of the Nick's letters email newsletter which I am typing after gazing at the evening sun.

What is the Pareto Principle?

It is a mental model that can be used to improve the way we look at problems and how we solve them. When I say mental model I mean: the old and wise ways of thinking that have been proven to work.

Pareto Principle is a mental model that can be used in business and life in general. It does not matter where you are specialising. It does not matter the type of business. It's like a law of the universe.

Anyway, to help you understand and see it's application, here are three examples in form of lines.

• 80 percent of the results come from 20 percent of the effort.

• 80 percent of a business’s income comes from 20 percent of their customers.

• 80 percent of a system crashes are caused by 20 percent of bugs.

Let us use point number one to illustrate how we can increase results in life.

Since a large percentage of results come from a small part of the effort, it is wise to investigate the small effort needed for big results. And please don't get me wrong. It does not mean that you reduce the effort you're putting in, it only means you find the right type of effort and maximise it.

Start looking at life with this mental model and I guarantee more happiness, clarity and strength.

Until next week.

P.S.

I noted due to deliverability issues, some of you sexy Nick's letters readers didn't see last week's email which was very insightful by the way.

It's a 3 minute read if you go here.

P.S.S

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