Few are vital, Many are trivial - “The 80-20 Rule”

A small learnin with TQM………..Just wanted to share it across!!!!

The Pareto principle (also known as the 80-20 rule, the law of the vital few and the principle of factor sparsity) states that, for many events, 80% of the effects come from 20% of the causes. Business management thinker Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, While some may claim that Juran’s broad attribution of this scientific observation to Pareto is inaccurate, Pareto’s Principle or "Pareto’s Law" as it is sometimes called, can be a very effective business tool – one that can help us manage more effectively. The 80/20 Rule means that in anything a few (20 percent) are vital and many (80 percent) are trivial. In Pareto’s case it meant 20 percent of the people owned 80 percent of the wealth. In Juran’s initial work he identified 20 percent of the defects causing 80 percent of the problems. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to almost anything, from the science of management to the physical world around us.

How it helps us

The value of the Pareto Principle in management is in reminding us to stay focused on the "20 percent that matters". Of all the tasks performed throughout the day, one could say (based on Pareto’s Principle) that only 20 percent really matter. Those tasks in the 20 percent very likely will produce 80 percent of our results. Thus, it’s critical that we identify and focus on those things. When the fire drills surrounding the "crisis of the day" begin to eat up precious time, remind yourself of the critical 20 percent you need to focus on. If anything in the list of activities and action items has to fall by the wayside – left undone – be sure it isn’t listed in that critical 20 percent. Managing Smart, Working Smart….On the Right Things

There are many lessons in management – one being that it is not only important to do things right, but also to ensure you’re doing the right things. Pareto’s Principle should serve as a reminder to us to stay focused on investing 80 percent of our time and energy on the 20 percent of work that’s really important. It’s not just important to "work hard" and "work smart", but also to work smart on the right things.Practice doesn’t make a man perfect……Perfect practice does!!!!!!