Pareto Analysis is a statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effect. It uses the Pareto Principle (also known as the 80/20 rule). The idea is that by doing 20% of the work you can generate 80% benefit out of the entire job. In any given task, job, report, project, situation etc. 5% or less is vital task and the rest 95% is not very significant. Many a times, it so happens that we are hooked to that 95% of tasks wasting our energy, time and resources. The 5% tasks which are more significant are often overlooked.
2. Focused and priority efforts in essential areas will give much better results as compared to non-significant areas.
3. Develop skills and talent to manage those areas.
4. Focusing on vital areas will increase your efficiency as well as effectiveness.
5. Vital areas may change from time to time and according to thecircumstances.
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