"The Vital Few and the Trivial Many." — J.M. Juran
Quality
guru J.M. Juran referred to Pareto's principle as "The Vital Few and the
Trivial Many". If you are running a company the 80/20 rule has powerful
implications for every area of your business.
Pareto's
postulate says 20% of your effort will generate 80% of your results. There is
also a corollary: 20% of your results absorb 80% or your resources or efforts.
Pareto's
Principle, the 80/20 Rule, should serve as a daily reminder to focus 80 percent
of your time and energy on the 20 percent of you work that is really important.
Don't just "work smart", work smart on the right things.
From
your long list, identify the top three to four and focus all your energy on
those. When one is complete, pull another up to the top, but hold no more than
four at a time. You will find that you get more done (and at a higher quality)
by working on only four priorities at a time than you did when you tried to
juggle ten or twelve.
The
most effective leaders are those who can cut through the clutter to focus on
what is most important. Anyone is a leader who can help others simplify and
focus so that more of what matters is what gets done!
Production:
You may find that 80% of your products or services are created by 20% of your
people, 80% of your problems are fixed by 20% of your people, team, and, 80% of
your problems probably come from 20% of people. All a different 20%! Wouldn't
it be helpful to know which 20% is doing what?
Quality:
80% of your defects are found in 20% of your product units. Also, 80% of the
defects come from 20% of the defect types. Spend lots of energy figuring out
how to prevent those 20% and you've made huge gains in quality.
Of
its many applications, its strongest interpretation suggests that 20 percent of
actions accounts for 80 percent of results. Dr. Juran also identified, on the
flip side, that 20 percent of defects accounts for 80 percent of problems.
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