The Pareto Principal (otherwise known as the 80/20 rule), asserts that 20% of causes create 80% of results. Unlocking this idea in your company can unleash huge results and here is a quick rundown of the way this rule may apply to the construction industry;
- 80% of profits come from 20% of projects
- 20% of projects and/or customers take 80% of your time to manage
- 20% of staff or contractors produce 80% of work or results (or profit)
- 80% of resources are taken up on 20% of projects
- 80% of problems come from 20% of causes
- 20% of your time will yield 80% of your results or outputs
Now this is just a quick example of the most common applications of the rule and it will vary depending on how efficient your team is currently running and the rule may also apply to different degrees. I.e. 90% of problems are caused by 10% of causes or 40% of projects deliver 60% of profits etc. The importance is to find the imbalances, value and slack and to then act accordingly.
For more detailed exploration into this principle look here.
