Quick Definition:
The Pareto Principle (or 80/20 Rule) states that for many events, roughly 80% of the effects come from 20% of the causes. In PM, this means that 80% of project value often comes from 20% of the tasks.
Applying the 80/20 Rule
PMs can use the Pareto Principle to prioritize their efforts:
- Risk Management: 80% of project delays are often caused by 20% of the risks. Focus on those critical few.
- Quality Management: 80% of defects are often found in 20% of the code or components.
- Resource Management: 20% of your team members may be responsible for 80% of the project’s output.
- Stakeholder Management: 20% of stakeholders may have 80% of the influence on project success.
Pareto Charts
A Pareto chart is a bar graph that ranks causes from most to least frequent, helping you visually identify the “vital few” problems to solve first.
