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The Pareto Principle

Have you ever noticed that sometimes your team’s hard work doesn’t have quite the impact you had expected? Or maybe a small effort from your team had a much greater effect on your goal than you had anticipated.

You might expect that all your team’s efforts would have the same significance. However, there’s often an imbalance between cause and effect in relation to your team’s input and output.

A four-step application of the Pareto principle

It’s just this imbalance between cause and effect that the Pareto principle draws attention to. The Pareto principle is an important consideration when managing your team’s tasks. This is because you need to take into account which tasks will have the greatest impact on your team’s goal.

According to this principle, 20% of causes may account for 80% of effects in a given case. But remember that the 80/20 rule isn’t an absolute rule and is relative to your organization’s current situation.

A four-step application of the Pareto principle can help you prioritize when your team is faced with a range of problems. First, you identify and list all your team’s problems.

Second, you identify the root cause of each problem. Third, you group the problems by root cause. Finally, you rank problem groups by rating scores for each problem in a group and identifying which group has the highest overall score.


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