Project scheduling is a tedious job that requires effective management. An effective project manager is needed because project completion is of utmost importance to any organization. To gain success in project management, one needs to know how to apply the Pareto principle for project success. It has been recognized as a success factor for project success in many instances in history. The Pareto principle is named after the Italian economist Vilfredo Pareto, who discovered its core insight. The Pareto principle is the well-known 80-20 rule. It is stated that 20% of the inputs cause 80% of the business results. If you are familiar with the 20th century Italian mathematician and economist Vilfredo Pareto, then you already know that he was interested in less important parts of society and statistically found higher rates of income distribution. To pursue a project effectively, one should focus on the most vital factors, or those factors that provide 80% or more of the results.
Without the Pareto principle, one can’t achieve success in his projects. Today I am going to discuss with you the importance of the Pareto principle. And how can you apply this principle to gain success in your projects? So let’s get started with definition of Pareto principle.
What is the Pareto principle?
The Pareto Principle is a law of nature that states that for many events, approximately 80% of the effects come from 20% of the causes. The name comes from an Italian economist, Vilfredo Pareto, who observed and explained this principle in 1906. The Pareto Principle has been used to explain why some businesses are more successful than others, but it can also be applied to projects. In fact, the concept of the 80/20 rule is often used to describe how the resources available to a project team matter more than their individual skill sets or experience levels.
If you look at most projects from a Pareto perspective, you’ll find that 80% of your work will come from 20% of your activities. You might not be able to predict when or where these 20% activities will occur, but if you plan carefully and work smartly, you can make sure that your resources are well-utilized when they do occur.
How to apply the Pareto principle for project success?
This principle has been used in many fields, including project management, where it can be applied to the success or failure of projects. The general idea behind this is that you can improve your chances of success by focusing on the key activities. The Pareto principle can be applied to any project, regardless of size or complexity. It is especially useful for small projects with limited resources because there are
fewer opportunities to fail compared to large projects with lots of resources. Here I am listing some steps on how to apply Pareto principle in project management?
- You can’t solve a problem if you don’t know what it is. The Pareto principle is based on the idea that 80% of the effects come from 20% of the causes. So, how do you identify a problem? • The first step is to define your goals and objectives. This will help you identify what problems need to be solved in order to achieve those goals and objectives.
- Identify factors that influence the success of your project. Once you know what problems need solving, it’s time to identify the factors that influence their success or failure. These include:
1: Project organization structure (e.g., project manager, team member)
2: Project management skills (e.g., planning, scheduling)
3: Organizational culture (e.g., commitment)
4: Technology solutions (e.g., software development)
5: Financial resources available for investment in the project (budget)
- Create a plan to eliminate each factor that contributes to the problem.
- Determine the Pareto principle for each factor and rank them with your top choices at the top of the list.
- Accept your top choice as the solution to your problem, and implement it.
The Pareto principle is universally applicable, no matter what field of business or endeavor you happen to be in. It’s a powerful tool, if used properly and with consideration for one’s own needs and situation. With a bit of research on your part, and dedication to implementation, you can reap the rewards of project management success in no time at all. Application of Pareto principle rewards success in Projects and if you are still struggling with the application of Pareto principle in your projects don’t worry, Green Projects Consulting is out there to help you in this regard. Just click the link and be one step more close to the success you want in your projects.