Following are some general examples of the Pareto Principle:

• 80% of the world’s wealth is controlled by 20% of the people.
• In a business-to-consumer software company, 20% of the customers cause 80% of support.

Here is how the Pareto Principle is commonly manifested in Project Management:

1. 80% of the time spent on a project is caused by 20% of the features.
2. 80% of the work is done by 20% of the project team.
3. 80% of the budget is spent on 20% of the functionality.
4. 80% of the conflicts are caused by 20% of the team members.

It is imperative for the Project Manager to account for the 80-20 rule in both the project plan (scheduling, team allocation, budgeting) and the risk management plan. Failure to properly recognize the 80-20 rule may very well result in a project that is over-budget and behind schedule. On the other hand, properly accounting for the 80-20 rule is among the traits of an experienced Project Manager and usually results in both a maintainable schedule and an accurate budget for the project.

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