The Pareto Principle
The Pareto Principle

The Pareto Principle

The Pareto principle is a theory that states that 80% of results come from 20% of the work. This principle applies (roughly) true in most things. While working in warehouse operations, we used the Pareto principle for quality control in the operation. If we could find out which actions or issues were causing the most defects, we would prioritize fixing those.

What was interesting was that oftentimes the actions that would yield the most results were easier - or at worst the same level of effort - as the other actions.

This begs the question, if 80% of the work we do is not driving the same level of impact as the other 20%, how do we identify which 20% to focus on? The answer is to analyze the impact of each possible input and use a simple process of elimination. Start with focusing on one thing, if that doesn’t yield the results you’re looking for, move on to the next. Repeat until you find the 1 activity that is bringing the most value to your business and focus on that.