In the year 1848, Vilfredo Federico Damaso Pareto, an important philosopher and economist was born. Upon a few observations and investigations, he concluded that 80% of production for these industries were coming from 20% of action. He made a rule called the 80/20, or Pareto principle. Some times this ratio isn’t always on just one side. For example, 20% of software bugs are caused from 80% of software crashes. Another example is 20% of customers are accounted for 80% of profits.
Reflect on these key points:
- 1Pareto invented the 80/20 rule that says that 80% of the results we make come from 20% of our actions.
- 2To utilize this rule effectively in your work environment, ask yourself which projects are most important.
- 3While using Pareto, remember there are only 24 hours in one day to accomplish things.
“He investigated different industries and found that 80% of production typically came from just 20% of the companies.”
Read the full story: https://forbes.com/sites/kevinkruse/2016/03/07/80-20-rule