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This report looks at how Pareto’s 80/20 Rule affects businesses and their processes, performance and results.
The 80/20 Rule – more accurately referred to as the Pareto Principle – has origins set more than 100 years ago in an Italian economist’s garden. Yet the Pareto Principle still affects all of us in almost every part of our lives today, especially in business. So what is it?
It has many names, the 80/20 Rule most of you will have heard of and may even have applied in some way, but it is also known as the ‘law of the vital few’ and even ‘the principle of factor sparsity ‘.
However, we choose to refer to Pareto’s Principle, it means and does the same thing.And if applied to a business environment, the rule is usually in the form of the following statement: “80% of your sales come from 20% of your clients”.
Does your business apply the 80/20 Rule for the best results? If not, then find out how it can.
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