Monday, July 2, 2007

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of us today do not notice that everything is falling apart, especially the services provided by companies. What's happening then? Simple ... the managers of the companies are implementing the law 80 20 Vilfredo Pareto while grabbing over and changed, in my opinion, if produces inefficiency, is poorly understood or incomplete. Every one who has noticed that in any field that requires human intervention to generate a service or a product, today we face a personal lazy, too rushed, exhausted and ill-prepared and this causes no end of problems at organization, production and resolution that have a negative impact on economic performance. But why call into question the Law 80 20? For Vilfredo Pareto 80% of the results is 20% of cases ie 80% of the work is done by 20% of workers. I say that if this law is taken literally, and made reckless cuts 80% can only produce devastating effects in the long term in any field. Pareto was right in drawing this relationship between causes and effects analyzing the data standard that any document produced, but I want to remember that this Law is that because it is natural that and then forcing causes narrowing of the ratio 80 20, which remains in constant 80 20, resulting in a reduction of the product NORMAL 80 , then a decrease of result as all eyes today. The reckless, or smart, business managers, and applying the Law of Pareto without understanding the actual operation, or pretending not to create damage to their businesses because the reduction of staff sparametra the Pareto curve, which is forced to downsize again using the same Law 80 20. In practice, the great Vilfredo Pareto had found a natural constant of Mother Nature, but had never claimed that the 80% of staff redundant because it is useless for production. The Pareto Law, to be seen as it is and, in my humble opinion, you can better say that 80% of the work is done by 20% of the total average of all workers, not just the workers, some economists interpret as they please and that stupid, if will lay off 80% of employees, the Pareto Law will speak on what remains dangerously that is not on the workforce, but on time worked and with relative loss of economic enterprise. To help you better understand the veracity of 80 20 , but its misuse by those who do not take the law only as a statistic, I wish to use another example. If I am an economist who uses stupid 80 20 like a biblical commandment, laying off staff deemed redundant, then why not throw also scrapping the 80% of the machines used for production? About 80 percent of the products is made 20% of the machines, and yet because a radio does not take off 80% of components etc, etc, etc. course, if the sacked employees my shares held sketch, if I throw the machines and then as I produce? And then there is more unemployment, fewer coast the workforce. Omitting then the geo-economy, which implies a lowering of standards in some areas and rising in others, and many other nice strategies questionable, however, what is there for all to see, today, in Italy, is that all as a result of downsizing, is in disrepair. If you consider the actual need of laborers, if the form makes you accountable and encouraged, and if taking into account that the 'Pareto's 80% of the overall average to be considered is the commitment to work and not the number of workers (parasites and fancazzisti apart, politicians included,) then the whole country would have a great benefit.
CONCLUSIONS: The Law 80 20 Vilfredo Pareto is analytically correct, but Pareto has never properly explained how to change it because if is a constant that will always return and therefore it is dangerous to modify the two parameters close link between them, like we do today scriteriatamente in Italy, with the staff, producing dramatic economic effects. If you reduce the workforce by 80% to 20% inevitably lost productivity, or outcomes, silly and you continue to reduce staff resources and bankrupt any business. Certainly the concept of reducing machining worked in the past, but analysts would do well to understand the reasons for no longer present as the replacement of labor man, machine and computer work. replacement of today's human is no longer feasible: we must avoid redundancy, and stake everything on a personal well motivated, trained and responsible who receives a living wage . Law 80 20 is not wrong, as initially thought, but it is wrong the way you want to change the not understand, perhaps for convenience, which was, is and will always be a CONSTANT UNCHANGED.
David Domenech

analysis published under license from the author:
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