It was 1906. Italian economist Vilfredo Pareto, in the course of researching his ideas, made an interesting observation. 80% of the land in Italy, he discovered, was owned by just 20% of the people. Exploring this relationship in other countries, he found that the situation was the same all over Europe. Over time, he became aware that this 80/20 split was not limited to landowners—or even to human affairs. In fact, he found, 20% of the pea pods in his garden produced 80% of the peas he harvested! Forty years after Pareto published his ideas, business theorist Joseph Juran stumbled across the 80/20 rule, and wondered if it could be applied to business situations. Could it be that 80% of business problems were generated by just 20% of the …

Read Original Article Here:

Solve 80% of Your Problems With Pareto Analysis