October 2013
Intermediate to advanced
272 pages
5h 45m
English
Content preview from The Little Book of Big Management Theories
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THEORY 81
THE PARETO PRINCIPLE (CROWN AS KING)
Use Pareto to identify where you need to concentrate your efforts to maximise your results.
The Pareto principle is possibly the single most useful theory that a manager can know about. Why? Because it can be used to reduce significantly a manager’s workload and is applicable in a huge range of circumstances.
The principle was devised by the Italian economist Vilfredo Pareto. He first used it to demonstrate that 80% of the wealth in Italy was owned by 20% of the population. Joseph Juran, the quality guru (see Theory 69), stumbled across his work and helped to popularise its use.
It was quickly found that the 80/20 split could be applied to a vast array of social and business situations. ...
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