WHO IS PARETO?
In 1906, an Italian economist, Vilfredo Pareto, came up with the theory of the 80/20 Rule. This rule states that a small number of causes are responsible for a large number of effects. Its applications are wide-ranging and can be used to identify the most productive 20% of all the tasks you perform. All you have to do is focus your attention on the 20% of your most productive tasks. By applying this type of thinking, your efforts will produce 80% of your productive results. A FEW EXAMPLES • 80% of your problems will come from 20% of your employees. • 20% of your inventory will net you 80% of your profits. • 20% of the doctors work will net 80% of the results. • 80% of your success will come from 20% of your efforts. Well, by now you get the idea. The trick here is to determine where that all-important 20% are located. That’ll require questioning everything you do in light of the net returns of those efforts. USING 80/20 IN YOUR PRACTICE Pareto’s concepts are universal and could also ap
