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• 80 20 principle lean how to#

We had just spent over 10 hours building a policy for an event that had only occurred once over the last 3 years. After the meeting, the team members spent another ten (10) cumulative hours talking and writing this new policy.

80 20 principle lean how to#

My team had spent the better part of the meeting discussing how to do layoffs. Then we assigned one of the team members to build a process. This is when I understood what Geno was saying in “Traction”. It was not until after one of my team meeting, where we were discussing the need for a process. Somehow his statement did not make a lot of sense to me. Being a Lean Six Sigma process person, my preference is to have a process for everything. While reading the book “Traction” by Geno Wickman, I noted that he had referenced the 80/20 rule in relation to the amount of time you should spend on building processes. Focusing on the 20% of the activities that will result in 80% of the gains. Peratos law when applied to business is a method to help managers focus on what is important. With limited resources, businesses need to work on the highest value activities first. Not certain of the source of the pea story but it adds to the credibility of my story. He found that 80% of his peas came from 20% of the pods.

I was also told that he found the same to be true when he was harvesting his peas from his garden. Where he made observations around the fact that 80% of the land of Italy was owned by about 20% of the population. Vilfredo Pareto was an Italian engineer who made several important contributions to economics, particularly in the study of income distribution. Assuming, that everyone understands what you are talking about is a dangerous assumption if your intention is to communicate. Worse than that, I am certain that this was not the first time that I had referred to it. At one my leadership team meetings, I used the term and then discovered only part of my team had ever heard about Pareto’s Law. I had thought that the 80/20 rule was a universal concept.