Create 4x Value with the Same Effort

The quality has a cost. Perfect solutions are not cheap, rather they are expensive. You can still create 4 times value with the same effort with  80 / 20 Pareto Principle when your customer is not a perfectionist.

The Standish Group ranks the usage factor of features across the average enterprise software system. Their findings show that on average only 7 percent of an enterprise application features are “always” used, 13 percent of the features are “often” used, and 16 percent are used “occasionally.” That leaves 64 percent of the features in an average enterprise application as either “rarely” or “never” used.

The Pareto principle states that,

“For many events, roughly 80% of the effects come from 20% of the causes”


Quality is simply giving people the product or service they want and need.


If your customer wants PERFECT output, You have to spend 100 % effort.


Each 20 unit effort creates less & less marginal value

  • 1st 20 unit effort creates 80 unit result
  • 2nd 20 unit effort creates an extra 16 unit result and a total of 96 unit result
  • 3rd 20 unit effort creates 3.2 extra unit result and a total of 99,2 unit result
  • 4th 20 unit effort creates 0,64 extra unit result and a total of 99,84 unit result
  • 5th 20 unit of effort creates 0,128 extra unit result and a total of 99,968 unit result Lets assume now 100% result is created


If your customer is satisfied with 80%, you can work on 5 different tasks, 


& create 4 times value with the same effort.


If perfection is not required, let us create 4x value with the same effort. 

Download presentation: Create 4xvalue with Pareto Principle_erdemseherler_com

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