The 80-20 Rule – the Pareto Principle--describes the inherent disparity between cause and outcome and the effort and result. Let’s see a presentation on how to apply the 80-20 Rule or the Pareto Principle that helps you identify the most important problems and resolve them accordingly.
Welcome to the presentation titled “80-20 Rule - The Pareto Principle”
The 80-20 Principle talks about an inherent disparity between cause and outcome and effort and results.
The Pareto Principle means, "Put your efforts where they will make the most difference."
A deeper analysis of the data usually shows that about 5% of the causes generate 50% of the profits While the bottom 50% of causes generate only 5% of profit or revenue
One has to be careful about how to apply the 80-20 Rule for growth in personal and professional life.
Include the 80-20 Rule in Time Management and productivity workshops help people focus on activities of the highest impact.
Pareto Principle is an important concept to plan your Sales achievements.
20% of your customers make up 80% of your budget.
You must always keep your efforts on the remaining 80% of customers at a "reasonable level", which is difficult.
Identify key happiness triggers (20%) and ditch the activities (80%) that provide little or no satisfaction
Focus on activities that produce the best outcomes for you, professionally and personally.
The 80-20 Strategy streamlines your product portfolio and reduces operating costs without losing business or irritating your customers.
Software vendors sell features but businesses need capabilities. This approach helps in bridging the gap
A very good application of this rule comes from making a Critical Mistake Analysis.
Critical Mistake Analysis can be used to target training to the critical content (20%) that result in the largest impact (80%).
Applications of the 80-20 Principle:
The main purpose of using the 80-20 Rule is for the growth and development of a business by using new techniques and technologies.
It helps to identify the most important problems, typically in the form of histograms or vertical bar charts.
When you let go of unused stuff
When you learn to use the tools you need the most
To do away with meaningless activities
To concentrate on your strengths
The Pareto Principle helps you focus on the areas where you'll get the biggest bang for your buck.
To harness the power of the 80-20 Principle in your personal life, do the following:
With research, you can ascertain how things happen in an organization.
The Pareto Principle is a fact of life for any B2C business with many customers. It forms the cornerstone of CRM or a Loyalty Marketing Strategy.
It is best used as a ‘gross error check’ and a useful starting point in the absence of better information.
As William James says, “It is our attitude at the beginning of a difficult task which, more than anything else, will affect its successful outcome.”
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