David D. Kaspars Blog

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Pareto efficiency - A Tool for perfectionists

Many executives spend too much time on it, a Problem is perfect solution. But they forget that a less perfect result, the needs are also covered would have.
Pareto hypothesis
The Perfect solution is not always the best choice!
origin and principle
The Pareto principle is based on the Italian scientist Vilfredo Pareto back in the outgoing second half of the 19th century. Century following observation was made: In the case of investigations...

....the distribution patterns of the of Italy's national wealth made Pareto the discovery that approximately 80 percent of a's national wealth to about 20 percent of the population of Italy accounted for. 80 percent of the population held the remaining 20 percent of the's national wealth.
banks should primarily this 20 % of people care and a lot of their orders would be backed up.
This leads to the Pareto principle. It States that many tasks with a funding of about 20 % so you can do that up to 80 % of all problems will be solved
The Pareto principle applies to many processes in Economics, Ecology and sociology. More generally, it States, that, with a little Input (time, resources, effort) is a large part of the available Outputs (success, money, reward, time savings, etc) can be realized.
Practical application
1. you can Define whether the task "the perfect solution". Keep in mind that the perfect solution is often not possible, because the circumstances anyway to permanently change.
2. Mnimieren the effort by itself already after a relatively short time, satisfied with the result. It needs courage! But be flexible, if necessary, intervene in and, where appropriate, nachzukorrigieren.



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