Pareto triage: Difference between revisions

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 A JC coinage to capture management’s slavish devotion to the [[Pareto rule]].
-To exercise “[[Pareto triage]]” is to move beyond the ''observation'' that eighty percent of your revenues tend to come from twenty percent of your clients, and vice versa — which is just one of those unfortunate and immutably brute facts of life, like “Australians are good at cricket” — and to use it as a plan of business action to try to change the immutable facts of the universe.
+To exercise “[[Pareto triage]]” is to move beyond the ''observation'' that, in a given period, eighty percent of your revenues will come from twenty percent of your clients, and ''vice versa'' — which is just one of those unfortunate, immutable characteristics of a group of uneven numbers— and to use it as a business action plan to impose order upon the intractably messy universe.
-The logic — if one could call it that — is this: four fifths of our clients provide just one fifth of our revenue. That great remainder — eighty percent of them! — is really not worth the bother. Rather than wasting precious internal resources on the low-yielding mass, we would be better served just foregoing that twenty percent of revenue or, at any rate, pay not the blindest bit of attention to maintaining it — and instead concentrate on that lovely twenty percent segment who bring all the rest of our income.
+The logic — if one could call it that — is this:
+{{Quote|
+We have  observed that four fifths of our clients provide just one fifth of our revenue. We have spreadsheets to prove it. If a single fifth accounts for four fifths  of our income, the remainder — eighty percent of our customers! — are hardly worth the bother. Rather than wasting precious internal resources on this low-yielding mass, we would be much better served just foregoing that twenty percent of revenue — or, at any rate, paying not the blindest bit of attention to maintaining it — and instead concentrating on that lovely twenty percent segment who bring in all the rest of our income. }}
 Here is a variation on the same argument, rendered in more plainly [[averagarianism|averagarianist]] terms: