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Simple it is, right?īefore understanding the benefits of Pareto Analysis there are certain facts to be known about it. Thus using the Pareto principle, we can derive maximum impact with minimum effort and within short time span, if we focus on the right factors. To generalize, 80% of the problem is caused by 20% of the reasons! Here, we should keep in mind that this doesn’t mean that the rest 20% is not important at all but can be said as less significant. This can be interpreted in many different ways like, for sales people 80% of the orders will come from the 20% of the customers, for team managers 20% people of the whole team shall give 80% of the work or results. Pareto Analysis is based on 80/20 rule which says that our 20% efforts (out of the whole 100%) will give 80% of the benefits. Lean Six Sigma teaches a very useful technique of prioritization to overcome this problem which is a mother of our all the other problems. Organizations focus on the wrong reasons or causes and waste a lot of effort to solve a problem or improve their business. This issue is pertinent not only at an individual level, but even at organizational level. This is human nature as we all do the same thing in our day to day lives. Instead, we do completely opposite to this. We mostly forget to take up the important things first and less significant work later. But we lack the skill to manage our work with the time. We all have so much on hand to do and really speaking so much time to finish the things up. Prioritizing skills are your ability to see what tasks are more important at each moment and give those tasks more of your attention, energy, and time. It helps to save time and money as you will be able to focus on what is important at the expense of lower value activities. One of the important aspects of the leadership in today’s competitive world is Prioritization.

Have you ever confronted a situation doing hard work the whole day and at the end you realize that most of the time had been given by you and your team to the Non Value Added things!