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	<title>PMServicesNW &#187; The Pareto Principle</title>
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		<title>The Pareto Principle (Pareto&#8217;s Law)</title>
		<link>http://www.pmservicesnw.com/2010/10/the-pareto-principle-paretos-law/</link>
		<comments>http://www.pmservicesnw.com/2010/10/the-pareto-principle-paretos-law/#comments</comments>
		<pubDate>Sat, 16 Oct 2010 08:50:22 +0000</pubDate>
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				<category><![CDATA[Project Management]]></category>
		<category><![CDATA[80/20 analysis]]></category>
		<category><![CDATA[80/20 rule]]></category>
		<category><![CDATA[Pareto's Law]]></category>
		<category><![CDATA[The Pareto Principle]]></category>

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		<description><![CDATA[Known by various names, including The Pareto Principle, The Pareto Law, Pareto&#8217;s Law, The 80/20 Rule, The 80:20 Rule, Pareto Theory, The Principle of Least Effort (a term coined by George Zipf in 1949 based on Pareto&#8217;s theory), The Principle of Imbalance, The 80-20 Principle, The Rule of the Vital Few (an interpretation developed by Joseph Juran in the field of quality management) and other combinations of these expressions. The Pareto 80/20 Rule is commonly used (and ignored at considerable cost) in many aspects of organizational and business management. It is helpful in specialised quality management such as six sigma, planning, decision-making, and general performance management. The principle is extremely helpful in bringing swift and easy clarity to complex situations and problems, especially when deciding where to focus effort and resources. The Pareto Principle (at a simple level) suggests that where two related data sets or groups exist (typically cause and effect, or input and output): &#8220;80 percent of output is produced by 20 percent of input.&#8221; or alternatively &#8220;80 percent of outcomes are from 20 percent of causes&#8221; or alternatively &#8220;80 percent of contribution comes from 20 percent of the potential contribution available&#8221; There is no definitive Pareto &#8216;quote&#8217; [...]]]></description>
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