Saks Gloweli Business Tip – Sacrifice the Trivial Few for the Vital Many
The Pareto Principle also known as the 80/20 law : says that 20% of causes are usually responsible for 80% of results
It is named after an Italian economist named Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas
The law suggests that businesses are best served by giving the most attention to the 20% of customers accounting for 80% of its sales, to the 20% of the effort that will do 80% of the work, or to solving 20% of factors causing 80% of its problems.
It is not uncommon during an efficiency engagement to find that 80% of the work is done by 20% of the people.
By Sid Mewara, Managing Director, Saks Gloweli Consulting Saks Gloweli Consulting is a management strategy consulting firm based out of Shenzhen and Hong Kong that helps clients grow their business www.saks-gloweli.com