ConceptsNest

  The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few"). Other names for this principle are the  80/20 rule , the  law of the vital few ,  or the  principle of factor sparsity . Management consultant Joseph Juran developed the concept in the context of quality control and improvement, naming it after Italian economist Vilfredo Pareto, who noted the 80/20 connection while at the University of Lausanne in 1896. In his first work, Cours d'économie politique, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population. The Pareto principle is only tangentially related to Pareto efficiency. More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly . It can mean all of the following things: The Uneven Distribution What does it mean when we say that things aren’t distributed evenly? The key point is that each unit of wor

  ***Continued from Chapter 01 (Covered previously: What Is Big Picture Thinking, Importance Of Big Picture Thinking, Detail Oriented Or A Big Picture Thinker- The Difference) Link to Chapter 01 Identifying the Different Approaches - Approach Indicators No matter which field we belong to – an aspiring entrepreneur, someone who’s putting together a dream team, or polishing our leadership skills, big picture thinking can help open up, innovative and unexpected creative paths, ideas and solutions. Detail-Oriented Approach Indicators o    We prefer tweaking an existing plan than creating one from scratch o    We think over issues in such great detail that we sometimes miss the bigger picture o    We end up putting down or highlighting almost all notes o    We work towards high-quality work in most areas of our life and struggle with perfectionist tendencies o    We’re organized and/or like routine   Big Picture Approach Indicators o    We can easily spot patterns

  Most people fall under either of the two main types of thinking paradigms- big picture or detail-oriented . The big picture thinker usually keeps coming up with ideas of what the ideal world would look like. The detail-oriented thinker on the other hand mostly thinks pragmatically and is organized. A Story: Around 1959 or 1960, Dashrath Manjhi, a laborer in India’s Gehlaur village lost his injured wife because the nearest hospital was about 45 minutes away. 22 years later, the same man had carved a 10-meter long path through the rocky ridge – all with a hammer and chisel – that chopped the travel time to 15 minutes. Manjhi is an extreme example of seeing the big picture — instead of getting overwhelmed by the details of how he was going to get it done, he focused on the broader issue at hand: he didn’t want anyone else to suffer his wife’s fate. So, he worked tirelessly for years to prevent that from happening again. What Is Big Picture Thinking? Big picture thinking is the ability t

  ***Continued from Chapter 01 (Covered previously: Case Studies on Goals going Awry, Inappropriate Calibration of Goals, Impact of Time Horizon on Goals,) Link to Chapter -01 Link to Chapter 01: https://www.blogger.com/blog/post/edit/5539914399812618370/9134115350792616570 Goals Becoming Too Challenging Proponents of goal setting claim that a positive linear relationship exists between the difficulty of a goal and employee performance. Specifically, they argue that goals should be set at the most challenging level possible to inspire effort, commitment, and performance—but not so challenging that employees see no point in trying. This logic makes intuitive sense, yet stretch goals also cause serious side-effects like:- Shifting Risk Attitudes:->   Goal-setting often distorts risk preferences. People motivated by specific and challenging goals adopt riskier strategies and choose riskier gambles than do those with less challenging or vague goals. Related literature has found

  For decades, goal setting has been used as a tool for improving employee motivation and performance in organizations. Across hundreds of experiments, dozens of tasks, and thousands of people across four continents, the results are clear. Compared to vague, easy goals (e.g., “Do your best”), specific and challenging goals boost performance. Locke (1964) is credited with the very first Goal Setting Theory, where he focused on goal setting within the workplace.   He found that employees were motivated more by clearly set goals and actionable feedback to help them achieve those goals. Locke also found that motivation is key to achieving our goals, and we feel more motivated when we’re not 100% certain we can achieve the goal we’ve set for ourselves. Taking on challenges is highly motivational as it allows us to develop our skills, flex our problem-solving muscles, and gain a deeper sense of personal achievement. But has the systematic harm caused by goal setting been largely ignor