http://forums.thinkarete.com/forums/the-big-ideas/topics/richard-koch-80-20-baby-80-20 en-us 60 <p>From years as an Industrial Engineer specializing often in probability I would say this rule definitely holds for Gaussian or normal bell shaped population distributions which fits the majority of processes but there are definitely other probability density functions that fit other situations where very different probability functions occur and in those I suspect some deviation from Pareto&#8217;s observation.</p> Sun, 25 May 2008 14:12:58 -0000 forums.thinkarete.com:503:4:662 waltww http://forums.thinkarete.com/forums/503/topics/4 <p>Hello from Athens Greece</p> <pre><code>Do you think we can apply this rule to every case possible ?</code></pre> Mon, 07 Apr 2008 14:37:39 -0000 forums.thinkarete.com:503:4:645 anna http://forums.thinkarete.com/forums/503/topics/4 <p>Hello from Athens Greece</p> <pre><code>Do you think we can apply this rule to every case possible ?</code></pre> Mon, 07 Apr 2008 14:37:23 -0000 forums.thinkarete.com:503:4:644 anna http://forums.thinkarete.com/forums/503/topics/4 <p align="center"><em>&quot;Things which matter most must never be at the mercy of things that matter least.&quot;</em></p> <p align="center">~ Johann Wolfgang von Goethe, 19th Century German Poet, Dramatist &amp; Scientist</p> <p>It was 1897 when Vilfredo Pareto, an Italian economist, was studying wealth and income distribution in 19th Century England. During the course of his studies, he discovered that the majority of land and income was controlled by a minority of the population. In fact, 20% of the population controlled 80% of the wealth and income.</p> <p>On further analysis, mythical lore says that he found that this principle held true not only in different countries and different time periods, but also in contexts such as his garden&mdash;where he discovered that 20% of his peapods yielded 80% of the peas that were harvested!</p> <p>Since our pal Vilfredo identified the trend, many researchers have been busy pointing out some additional modern applications. Check these out:</p> <p>* 20% of criminals account for 80% of crime</p> <p>* 20% of motorists account for 80% of accidents</p> <p>* 20% of married individuals account for 80% of divorces</p> <p>* 20% of your carpet probably gets 80% of the wear</p> <p>* 20% of streets account for 80% of the traffic</p> <p>* 20% of product flaws account for 80% of problems</p> <p>* 20% of clients usually account for 80% of an organization&rsquo;s profits</p> <p>I could go on, but I think you get the idea!</p> <p>Oh, why not a few more?</p> <p>* 20% of the clothes in your closet are worn 80% of the time</p> <p>* 20% of beer drinkers drink 80% of the beer</p> <p>OK. I&rsquo;m done for now. :)</p> <p>Your job, however, is not complete. Look around you. See where you spend your time. See where you get your results. Is it 50/50 or more like 80/20?</p> <p>As Richard Koch, author of <em>The 80/20 Principle: The Secret to Success by Achieving Less, </em>advises:</p> <p>&ldquo;<em>80/20 Thinking requires, and with practice enables, us to spot the few really important things that are happening and ignore the mass of unimportant things. It teaches us to see the wood for the trees.&rdquo;</em></p> Fri, 11 Jan 2008 22:43:08 -0000 forums.thinkarete.com:503:4:4 brian http://forums.thinkarete.com/forums/503/topics/4