80/20 Rule


The 80/20 Rule that means that in anything a few (20 percent) are vital and many(80 percent) are trivial. Simply put, 20 percent of the people in the world owned 80 percent of the wealth.  Also Juran’s initial work he identified 20 percent of the defects causing 80 percent of the problems. Project Managers know that 20 percent of the work (the first 10 percent & last 10 percent) consume 80 percent of project time and resources.

You know 20 percent of your stock takes up 80 percent of your warehouse space and that 80 percent of your stock comes from 20 percent of your suppliers. Also 80 percent of your sales will come from 20 percent of your sales staff. 20 percent of your staff will cause 80 percent of your problems, but another 20 percent of your staff will provide 80 percent of your production. It works both ways.

The value of the this Principle for a manager is that it re-inforces you to focus on the 20 percent that matters. Of the things you do during your day, only 20 percent really matter. Those 20 percent produce 80 percent or more of your results. So identify and focus on those things. When the fire drills of the day begin to sap your time, remind yourself of the 20 percent you need to focus on. If something in the schedule has to slip, if something isn’t going to get done, make sure it’s not part of that 20 percent.

Shyam Verma, PMP, ITIL
Program & portfolio mgnt professional
LinkedIn:spverma. Twitter:Shammy11

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