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80/20 Rule of
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The above book by Avinash Narula suggests that your STORY is the most vital element of your presentation and writing. All the products and service offered here are based on convincing you of the importance of developing a convincing STORY as well as how to develop the same for presenting your ideas.

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What is 80/20 rule?
The 80/20 rule is probably one of the most powerful idea which is universally applicable in practically every sphere of our lives. The best part is that it is easy to understand and apply. Yet many people know little about it. The irony is that those who are aware of it, do not use it as often as they should in making decisions.

Practically everyone tries to achieve a balance in everything they do. In any case, that’s what most people suggest and recommend. However, the 80/20 rule suggests that imbalance has its own advantages. Believe it or not, it proposes that a little imbalance can actually result in tremendous benefits to you. Let us find out how.

Vilfredo Pareto, noted economist and sociologist, best known for his law of income distribution, gave birth to the Pareto’s Law or the 80/20 rule. Pareto was one of the first people to analyze economic problems using mathematics. In the late 1800s, he observed that 80 percent of the land in Italy was owned by 20 percent of the population. While gardening, he later observed that 20 percent of the peapods in his garden yielded 80 percent of the peas that were harvested. And thus was born the universally accepted 80/20 rule.

After Pareto developed his formula, many other researchers observed similar phenomena in their own field of research. Quality management expert, Dr. Joseph Juran, recognized a universal phenomenon that he termed as the principle of the “vital few and trivial many” which was similar to the Pareto’s principle. According to Dr. Juran’s observation of the “vital few and trivial many,” 20 percent of the tasks are always responsible for 80 percent of the results.

Even though, Pareto originally applied the concept to distribution of wealth (20 percent of the people owned 80 percent of the wealth) and Juran to quality (20 percent of the defects cause 80 percent of the problems), over the years the 80/20 rule has been expressed in a number of different ways. Some of these are:
(a) 80 percent of the results are achieved by 20 percent of the group.
(b) 20 percent of your effort will generate 80 percent of your results.
(c) In any process, few elements (20 percent) are vital and many elements (80 percent) are trivial.
(d) If you have to do ten things, two of those are usually worth as much as the other eight put together.
(e) 20 percent of the tasks account for 80 percent of the value.

Pareto analysis can be effectively employed for separating the major causes (the “vital few”) of a problem, from the minor ones (the “trivial many”). Such an analysis focuses your attention to tackling the major causes of the problem at hand rather than wasting time on the minor ones. The 80/20 rule has been tried and tested over the years but it has withstood the stringent scrutiny that it has been subjected to.

Application of the 80/20 rule in management
The Pareto Principle or the 80/20 rule proves its mettle in practically every area of management some of which are given below:
(a) 20 percent of the customers account for 80 percent of the sales.
(b) 20 percent of the products or services account for 80 percent of the profits.
(c) 20 percent of your stock takes up 80 percent of your warehouse space.
(d) 80 percent of your stock comes from 20 percent of your suppliers.
(e) 80 percent of your sales will come from 20 percent of your sales force.
(f) 20 percent of your staff will cause 80 percent of your problems.
(g) 20 percent of a company’s staff will output 80 percent of its production.

The 80/ 20 rule seems to be almost an universal truth and can be applied to practically all aspects of management and even to our personal lives. When used correctly, Pareto Analysis is a powerful and an effective tool for making continuous improvement and in problem solving. Continued application of this rule will greatly improve productivity, quality and profitability.

The 80/20 rule focuses the manager’s mind on the vital 20 percent that matters in terms of cost or occurrences. It also constantly reminds him to first concentrate on completing the critical 20 percent of the tasks.

How is the 80/20 rule connected to developing effective presentation and convincing writing? It is our contention that once you have built a convincing and logical STORY 80% of the job is done. The most vital part of your presentation or writing which will convince others to adopt your ideas or buy your products is your STORY. With a convincing STORY, your presentation or writing will automatically become convincing, of optimum length/duration, easily understandable, believable and interesting. What more. You will be able to deliver the presentation with confidence and without fear. So what we are telling you is that once you have built a good STORY, 80% of your job is done.




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