WHY PARETO WAS CROWNED KING
Managers are busy people. You are a busy person. Any theory that saves you time and helps you identify and access key information quickly has to have a value beyond rubies.
It’s also a theory that can be used in a wide range of situations. For example: the 2012 Forbes Rich List of America reveals that the richest 400 people in America have a wealth equivalent to 12.5% of America’s Gross Domestic Product. This means that about 0.000001% of the American population owns 12.5% of the wealth generated in America in one year. Based on that figure it’s pretty certain that at least 80% of all wealth in the USA is owned by 20% of the population.
However, don’t fall into the trap of believing that only financial targets are important. As Benjamin Disraeli said, ‘There are lies, damn lies and statistics’. And often the most important information in a business cannot be reduced to figures on a spreadsheet.