| | Deming said that 95% of an organization’s performance is attributable to its systems and only 5% is due to the people. Pareto originally proposed the 80/20 formula, which has been applied to many aspects of both business and personal life (e.g., 20% of employees create 80% of an organization’s success; 20% of your interpersonal activities create 80% of your sense of connection with others). Pareto suggested the 80/20 rule in 1906, a time before technology and other cultural changes contributed to speeding up both our work and personal lives. Many management experts today have recalculated Pareto’s rule to 95/5 to reflect these societal changes. |
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