What is the Pareto Principle
The Pareto PrincipleTeam 2Brandon DelgadoPaolo Di RussoShari
Eraclio-JettMegan FarmerKameron GarciaErik GiffordClaudia
Gonzalez
IntroductionWhat is the Pareto Principle?History of the Pareto
Principle.How is the Pareto Principle used?How can the Pareto
Principle help you?Pareto Principle in a team setting.
What is the Pareto Principle?Small number of causes is
responsible for large percentage of the effect-Ratio of 20:8020%
effort generates 80% resultsOther 80% effort generates 20% results.
Identify your 20%
Pareto's rule states that a small number of causes is
responsible for a large percentage of the effect, in a ratio of
about 20:80. Expressed in a management context, 20% of a person's
effort generates 80% of the person's results. The effect to this is
that 20% of one's results absorb 80% of one's resources or efforts.
For the effective use of resources, the manager's challenge is to
distinguish the right 20% from the trivial many.3
HistoryThe Pareto effect is named after Vilfredo Pareto, an
economist and sociologist who lived from 1848-1923.Pareto
discovered that 80% of the land in Italy was owned by 20% of the
people.In the late 1940s, Dr. Joseph M. Juran named the 80/20 rule
Paretos Principal.Vilfredo Pareto1848-1923
How The Pareto Principle Is Used(Business Setting)Increased
ProductivityIncrease ProfitabilityWeb OptimizationIdentify and Fix
ProblemsImprove Customer Service
How Can the Pareto Principle Help You?When applying the Pareto
Principle to your life, remember that it (Osborn, 2011): shifts
focus on areas that will have the biggest impact on the end goal
contributes to the overall success of a business.
So, what are some ways it can help?
How Can the Pareto Principle Help You?Increased Productivity
Allows employees to prioritize tasks and the critical 20% that
will yield 80% of the resultsTeaches employees how to utilize their
time
(Var, 2012)
How Can the Pareto Principle Help You?Increased
Profitability
Roughly 20% of salespeople produce 80% of a business
salesPrinciple can be used to determine where to implement focus;
on the 80% of employees that struggle to bring sales or the 20%
that produce majority of sales
(Var, 2012)
Pareto Principle in a team settingHow it can be helpful.
80% OF THE REWARDS COME FROM 20% OF THE EFFORT!
ConclusionParetos 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 your work that is really important (Reh, 2016). The
Pareto Principle can help businesses to be more successful.Thank
you for listening!
Referenceshttp://www.bsu.edu/libraries/ahafner/awh-th-math-pareto.htmlhttp://taskseveryday.com/blog/how-the-8020-rule-or-pareto-principle-improves-productivity-and-reduces-stress/Google
Images. (2016). vilfredo pareto - Google Search. Retrieved from
https://www.google.com/search?q=vilfredo+pareto&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiu_t3M6ffLAhUBdyYKHVeIDAYQ_AUICCgC&biw=1920&bih=969Reh,F.J.
(2016). Pareto's Principle - The 80-20 Rule. Retrieved from
http://management.about.com/cs/generalmanagement/a/Pareto081202.htmVar,
C. (2012, October 31). Top 5 Ways the Pareto Principle Can Improve
Your Business - TrackVia Blog. Retrieved April 06, 2016, from
https://www.trackvia.com/blog/productivity/top-5-ways-the-pareto-principle-can-improve-your-business
Osborn, K. (2011). Breaking Down the Pareto Principle. Retrieved
April 6, 2016.Var, C. (2012, February 28). Ways the Pareto
Principle Can Improve Your Business. Retrieved April 06,
2016.Butterworth, Andy. "Professional Team Management Tips For
Creative Folks Smashing Magazine."Smashing Magazine. Smashing
Magazine, 03 Sept. 2009. Web. 06 Apr. 2016.
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