An Italian engineer, sociologist, political scientist and philosopher is most widely known for his groundbreaking work in economics.
Vilfredo Federico Damaso Pareto's work flagged that 80% of the land in Italy was owned by 20% of the people.
Today it is commonly referred to as the 80-20 rule - this notion was unheard of prior to Pareto's work!
This is a fundamental principle, at the core of Business Excellence: 80% of effects come from 20% of causes.
Examples in business include:
80% your sales come from 20% of your products
80% waste in your business comes from 20% of your processes
80% complaints come from 20% customers
80% profit comes from 20% customers
This concept is important when you relate it to the second example, above: 80% waste in your business comes from 20% of your processes
So, identify the 20%. Focus on those 20% for improvement and leave the other 80% alone!
Stop trying to improve Everything! The maximum impact, the most gains, the biggest breakthroughs in your business will come from only 20% of your business.
Takeaway: Identify the right 20% to focus on, and leave the other 80% alone!
Author: Beth Stansfield aka Queen of Excellence