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Team 2

Brandon Delgado
Paolo Di Russo

THE PARETO PRINCIPLE Shari Eraclio-Jett


Megan Farmer
Kameron Garcia
Erik Gifford
Claudia Gonzalez
INTRODUCTION
What is the Pareto Principle?
History of the Pareto Principle.
How is the Pareto Principle used?
How can the Pareto Principle help you?
Pareto Principle in a team setting.
WHAT IS THE PARETO PRINCIPLE?
Small number of causes is
responsible for large
percentage of the effect
-Ratio of 20:80
20% effort generates 80%
results
Other 80% effort generates
20% results.
Identify your 20%
HISTORY
The Pareto effect is named after Vilfredo Pareto, an
economist
and sociologist who lived from 1848-1923.
Pareto discovered that 80% of the land in Italy was
owned by
20% of the people.
Vilfredo Pareto
In the late 1940s, Dr. Joseph M. Juran named the 1848-1923

80/20 rule
Paretos Principal.
HOW THE PARETO PRINCIPLE
IS USED
(BUSINESS SETTING)

Increased Productivity
Increase Profitability
Web Optimization
Identify and Fix Problems
Improve Customer Service
HOW CAN THE PARETO PRINCIPLE
HELP YOU?
When applying the Pareto Principle to your life, remember that it
(Osborn, 2011):
shifts focus on areas that will have the biggest impact on the
end goal
contributes to the overall success of a business.

So, what are some ways it can help?


HOW CAN THE PARETO PRINCIPLE
HELP YOU?
Increased Productivity

Allows employees to prioritize tasks and the critical 20% that


will yield 80% of the results
Teaches employees how to utilize their time

(Var, 2012)
HOW CAN THE PARETO PRINCIPLE
HELP YOU?
Increased Profitability

Roughly 20% of salespeople produce 80% of a


business sales
Principle can be used to determine where to
implement focus; on the 80% of employees that
struggle to bring sales or the 20% that produce
majority of sales

(Var, 2012)
PARETO PRINCIPLE IN A TEAM
SETTING
How it can be helpful.
80% OF THE REWARDS COME FROM 20% OF THE
EFFORT!
CONCLUSION
Paretos Principle, the 80/20 Rule, should serve as a daily reminder
to focus 80 percent of your time and energy on the 20 percent of
your work that is really important (Reh, 2016).
The Pareto Principle can help businesses to be more successful.
Thank you for listening!
REFERENCES
http://www.bsu.edu/libraries/ahafner/awh-th-math-pareto.html

http://taskseveryday.com/blog/how-the-8020-rule-or-pareto-principle-improves-
productivity-and-reduces-stress/

Google Images. (2016). vilfredo pareto - Google Search. Retrieved from


https://www.google.com/search?q=vilfredo+pareto&source=lnms&tbm=isch&sa=X&v
ed=0ahUKEwiu_t3M6ffLAhUBdyYKHVeIDAYQ_AUICCgC&biw=1920&bih=969

Reh, F. J. (2016). Pareto's Principle - The 80-20 Rule. Retrieved from


http://management.about.com/cs/generalmanagement/a/Pareto081202.htm

Var, C. (2012, October 31). Top 5 Ways the Pareto Principle Can Improve Your Business
- TrackVia Blog. Retrieved April 06, 2016, from
https://www.trackvia.com/blog/productivity/top-5-ways-the-pareto-principle-can-
improve-your-business

Osborn, K. (2011). Breaking Down the Pareto Principle. Retrieved April 6, 2016.

Var, C. (2012, February 28). Ways the Pareto Principle Can Improve Your Business.
Retrieved April 06, 2016.

Butterworth, Andy. "Professional Team Management Tips For Creative Folks Smashing
Magazine." Smashing Magazine. Smashing Magazine, 03 Sept. 2009. Web. 06 Apr. 2016.