Presentation on 80-20 Rule | The Pareto Principle - CommLab India

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The 80-20 Rule – the Pareto Principle--describes the inherent disparity between cause and outcome and the effort and result. Let’s see a presentation on how to apply the 80-20 Rule or the Pareto Principle that helps you identify the most important problems and resolve them accordingly.

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  • Welcome to the presentation titled “80-20 Rule - The Pareto Principle”
  • The 80-20 Principle talks about an inherent disparity between cause and outcome and effort and results.
  • The Pareto Principle means, "Put your efforts where they will make the most difference."
  • A deeper analysis of the data usually shows that about 5% of the causes generate 50% of the profits While the bottom 50% of causes generate only 5% of profit or revenue
  • One has to be careful about how to apply the 80-20 Rule for growth in personal and professional life.
  • Include the 80-20 Rule in Time Management and productivity workshops help people focus on activities of the highest impact.
  • Pareto Principle is an important concept to plan your Sales achievements.
  • 20% of your customers make up 80% of your budget.
  • You must always keep your efforts on the remaining 80% of customers at a "reasonable level", which is difficult.
  • Identify key happiness triggers (20%) and ditch the activities (80%) that provide little or no satisfaction
  • Focus on activities that produce the best outcomes for you, professionally and personally.
  • The 80-20 Strategy streamlines your product portfolio and reduces operating costs without losing business or irritating your customers.
  • Software vendors sell features but businesses need capabilities. This approach helps in bridging the gap
  • A very good application of this rule comes from making a Critical Mistake Analysis.
  • Critical Mistake Analysis can be used to target training to the critical content (20%) that result in the largest impact (80%).
  • Applications of the 80-20 Principle:
  • The main purpose of using the 80-20 Rule is for the growth and development of a business by using new techniques and technologies.
  • It helps to identify the most important problems, typically in the form of histograms or vertical bar charts.
  • When you let go of unused stuff
  • When you learn to use the tools you need the most
  • To do away with meaningless activities
  • To concentrate on your strengths
  • The Pareto Principle helps you focus on the areas where you'll get the biggest bang for your buck.
  • To harness the power of the 80-20 Principle in your personal life, do the following:
  • With research, you can ascertain how things happen in an organization.
  • The Pareto Principle is a fact of life for any B2C business with many customers. It forms the cornerstone of CRM or a Loyalty Marketing Strategy.
  • It is best used as a ‘gross error check’ and a useful starting point in the absence of better information.
  • As William James says, “It is our attitude at the beginning of a difficult task which, more than anything else, will affect its successful outcome.”
  • To read more such articles please visit: blog dot commlabindia dot com
  • Thank you
  • Presentation on 80-20 Rule | The Pareto Principle - CommLab India

    1. 1. 80-20 Rule – The Pareto Principle<br />
    2. 2. Inherent disparity between:<br /><ul><li>Cause and Outcome
    3. 3. Effort and Results</li></ul>80 %<br />outcome<br />80 %<br />Result<br />20 %<br />cause<br />20 %<br />Effort<br />
    4. 4. The Pareto Principle means, <br />“Put your efforts where they will make the most difference”<br />
    5. 5. A deeper analysis says:<br /><ul><li>5% of the causes generate 50% of the profits
    6. 6. 50% of causes generate only 5% of profit or revenue</li></li></ul><li>How to apply 80-20 Rule?<br />
    7. 7. The 80-20 Rule can be applied in Time <br />Management and productivity workshops<br />
    8. 8. Important concept to plan your Sales achievements<br />
    9. 9. 20% of your customers make up 80% of your budget<br />
    10. 10. Keep your efforts on the remaining 80% of customers at a "reasonable level"<br />
    11. 11. Identify key happiness triggers (20%) and ditch the activities (80%) that provide little or no satisfaction<br />
    12. 12. Focus on activities that produce the best outcomes for you, professionally and personally<br />
    13. 13. It reduces operating costs<br />Operating costs<br />
    14. 14. Helps Bridging the gap<br />
    15. 15. Critical Mistake Analysis (CMA): - a very good application of this rule<br />
    16. 16. Critical Mistake Analysis can be used to target training to the critical content (20%) that result in the largest impact (80%)<br />
    17. 17. Applications of the 80-20 Principle<br />
    18. 18. The 80-20 Rule is used for the growth and development of business<br />
    19. 19. Helps identify important problems<br />
    20. 20. Go off unused stuff <br />
    21. 21. Learn to use the tools you need the most<br />
    22. 22. Do away with meaningless activities <br />
    23. 23. Concentrate on your strengths <br />
    24. 24. The Pareto Principle helps you focus on the <br />biggest bang for your determination<br />
    25. 25. To harness the power of the 80-20 Principle in your personal life, do the following<br />
    26. 26. Ascertain how things happen<br />
    27. 27. Pareto Principle is the Cornerstone of CRM or Loyalty Marketing Strategy<br />
    28. 28. Pareto Principle best used as a gross Error Check<br />
    29. 29. “It is our attitude at the beginning of a difficult task which, more than anything else, will affect its successful outcome”<br />--William James<br />
    30. 30. To read more such articles, please visit <br />blog.commlabindia.com<br />
    31. 31. THANK YOU<br />

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