It doesn’t
always have to be perfect. It is the “good” results that are normally more
cost-effective. In many sectors less effort already achieves the major part of
a set goal. This applies to household chores as well as the development of a
new product.
The concept was developed by Wilfredo Pareto, an Italian economist and
sociologist, according to which 80% of the profit is achieved with only 20%
effort. However this unfortunately also means that 80% of the means used create
only 20% value. Thereby wasting many resources, energy and working time.
The so-called Pareto principle or the 80-20 rule applies surprisingly to
various applications.
- Very often 80% of your sales come from around 20% of your clients.
- 80% of your sales are often achieved with 20% of the articles.
- During working time it is common that 80% of the productive results are achieved in 20% of the time applied.
- 20% of the cost positions often amount to 80% of the total costs.
- It is not unheard of that 20% of the field staff achieves 80% of the sales.
- This also applies to meetings. The longer they last, the more unproductive they become.
Of course, these ratios don't always apply everywhere. But whoever wants to put
their company to a test will most likely realize that there is a lot of room
for improvement.
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