Introduction to Pareto Analysis

Pareto Analysis is not just about time management, its concept and applications are widespread.

Applying the Pareto Principle to errors and defects helps us to understand that a disproportionately large percentage of errors or defects in any process are usually caused by relatively few problems.

Pareto Analysis helps to identify the most significant few errors or problems so that they can be targeted for correction or resolution.  Effective Time Management, the Pareto Way means you should focus your efforts on giving your best shot to the top 20% of your activities. So, you should take a piece of paper and jot down all the activities or tasks you need to do in a day. Prioritize the activities and keep the top priority task on top of the list. So, don't fuss about the things that will do very little difference in your life.

You should use Pareto's Principle or the 80/20 Rule as a daily reminder to focus 80 percent of your time and energy on the 20 percent of you work that is really important. So, remember that you should not just ‘work smart’, but ‘work smart on the right things’.

According to a Management Theory, it is proposed that you should use Pareto's Principle in such a way as to produce what is called 'Superstar Management'. The supporters of this theory propose that you should focus your limited time on managing only on the 20 percent of your people that produce 80 percent of your results, that is, the superstars. However, this theory is flawed because it overlooks the fact that 80 percent of your time should be spent in doing what is really important. So, you should concentrate your efforts on helping the good become better. This is a better use of your time than helping the great to become terrific. Therefore, apply the Pareto Principle and use it wisely to all you do.