Have you ever wondered why richt people are rich and poor not? Why is it, that so few people own such a big share of the world's wealth? Find a surprising observation in this slide deck. Maybe, it is all about the Luck Factor? Can you beat the Luck Factor? Draw your own conclusions... Curious? Skeptic? Visit http://leanself.org !

1. leanself.orgJens R. Woinowski

2. In 1906, Vilfredo Pareto made an astonishing observation:
80% of the land belonged to 20% of the people
Since then, many similar observations have been made, for example
about the sizes of cities in a country
The mathematical concept of a Pareto Distribution has been developed
Lean uses Pareto charts as input for decision making and continuous
improvement

3. Pareto, Bell, Wealth, and Luck

5. Especially for wealth you might expect (or wish) a normal distribution:
Some very rich people
Some more comfortably wealthy
Then the bulk of average guys
Some who had bad luck
And finally the really poor

6. Starting with a population with normal distributed wealth, every
member of the population can gain or lose money
Very simple:
Every simulation step, the current amount of each member’s money
would be multiplied with a number between 90% and 110%
Following is the start of the simulation
Observe the flat line on the left and the Bell curve on the right

16. In each single step “LUCK” is randomly distributed over all members ...
... in real life, people with more fortune have better interest rates
There is no consumption of goods and fortune ...
... which usually hurts wealthy people less
There is no state collecting taxes ...
... but also no welfare for the poor

17. There is no inflation ...
... but the charts show no absolute numbers
There are no companies who make a profit from their work forces ...
... but also no secure salaries, only random interest rates at work
The number of simulation steps is very high ...
... but this may reflect the effects of inheritance

23. About the Author
Jens R. Woinowski is working as a quality and risk manager
at a major IT company. In his job, he learned about the
power of Lean. At home , he discovered that you can use it
beyond business . He blogs regularly about the application
of Lean to personal matters.
© 2014 Jens R. Woinowski
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