Using the 80/20 Principle for Workforce Effectiveness

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Using the 80/20 Principle for Workforce Effectiveness
sirelkhatim ibrahim nugud, Member
Can this principle be widely applied, and include a company workforce? In regard to performance and effectiveness of personnel, e.g. if the company's total workforce is 1000, can we attribute the achievements to only 200 people, what if the performance analysis revealed that the effective people is much less than this number?

Applying the 80-20 Principle
Jaap de Jonge, Editor
Hi Sirelkhatim, obviously the 80 / 20 principle must only be used as a rule of thumb and not taken too seriously.

I Think U R Right
sirelkhatim ibrahim nugud, Member
Hi editor, I think you are right but what puzzles me is that in most cases it applies truly, and the 80 that are trivial should be focused on to be reduced.

80/20 Principle for Workforce
orlygjavier, Member
My suggestion for the case of Sirelkhatim of Sudan, in finding that less than 20% are effective in an organization, is to strategize to increase the percentage to exceed 20%.
The way to do this is to divide and analyze the following three areas of the organization:
1. the top 20%,
2. the second 20%, and
3. the last 20%.
It is easy to see that every single % of increase in the top and second groups and every single decrease in the bottom group will tremendously up the entire organization's output.

20% Makes 80% Profit
Chris, Member
I am not in the position to verify any statement I am making here, however you might be quite right. What would you qualify as ''performance and effectiveness''? In most commercial companies that would be revenue, therefore I would suggest:
20% of the employees make 80% of the revenue. The other 80% would be merely to support the 20% to make those sales happen.

Making Sense of the 80/20 Principle
orlygjavier, Member
I think the way to do it is determine the value of 80% of the production, say the revenues. Then determine the manpower that produces this result, say the salesmen. In most instances, the result will be around the ratio, such as 80/18 or 80/17 or 80/21. How is this useful? It means that if your lower number is below 20, you may want to increase the number. If your lower number is above 20, you seem to be doing alright. Either way, an increase of 1 in the lower number will impact exponentially on the production percentage. You can get this 1 from the second 20% or reduce your bottom 20% of the producers.


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