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The key point is that most things in life (effort, reward, output) are not distributed evenly – some contribute more than others.What does it mean when we say “things aren’t distributed evenly”?In economics terms, there is diminishing marginal benefit.This is related to the law of diminishing returns: each additional hour of effort, each extra worker is adding less “oomph” to the final result. Take a look at this awesome video of an artist drawing a car in Microsoft Paint.

More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly. In that case, 20% of the workers did 100% of the work.By the end, you are spending lots of time on the minor details. It’s pretty phenomenal what can be accomplished with such a basic tool: Now let’s deconstruct this video.It’s about 5 minutes long, so each minute is about 20% of the way to completion (of course the video is sped up, but we are only interested in relative times anyway).The difference between #4 and #5 is not as great as #1 and #2, or better yet, a blank drawing and #1 (the time from to ).You really have to look to see the differences on the car between #4 and #5, while the contribution #1 makes is quite obvious. The point of the Pareto principle is to recognize that most things in life are not distributed evenly.

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