Beth's Blog

Pareto Burrito

Pareto Burrito

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

5S is simple, but it's not Easy!
THE Mantra for every situation