As long as we haven’t yet got smacked down by a mod or OP for going too far O/T in the discussion of the Pareto principle, I think some of these claims could use a little more interrogating.
In particular, this idea of the scalability of the “80/20 rule” in productivity really seems kind of dubious. Say I’ve got an organization of 500 employees, and the 80/20 rule is telling me that 80% of the organization’s productivity comes from 20% or 1/5 of them, i.e., 100 employees. Okay, but then you say 80% of that 80%, or 64% of the overal productivity, comes from just 20% of that 100. That is, twenty individuals in my 500-person organization are responsible for nearly two-thirds of its productivity? Okay…
Continuing with that reasoning, then, 80% of that 64%, or over 51% of the entire firm’s productivity, is due to 20/5 = 4 employees. And 80% of that 51%, or over 40% of the whole, is due to only one (well, 4/5 actually, but I rounded up to avoid dismemberment) individual?
Really? Four-tenths of all the productivity in my entire organization is due to just one person? I sure hope they’re driving very carefully!
Now, you may reasonably argue that the 80/20 principle is just a rough rule of thumb and isn’t scalable across multiple levels like that. Okay, then, what made you think it was reasonable to scale it over even one level? What are the actual mathematical and empirical constraints that need to be applied to this rule to tell us when, and to what extent, we can draw reliable inferences from it?
This anecdote about Pareto and the peas gets the Spock-eyebrow from me as well. Certainly, I can find all sorts of online references, mostly embedded in the genre of writing known as “corporate motivational bullshit”, to Pareto’s alleged discovery in 1896 (nice specificity) that 20% of the pods in his pea harvest yielded 80% of the peas.
But on skimming and searching several actual scholarly biographies of Pareto, I didn’t find any mention of peas in any of them. And I began to think about my own gardening experiences, in particular with pea crops, and the alleged results seemed… odd.
If I’ve got a hundred pea pods, for example, and the best 20% of them yield on average an impressive 5 peas each, I’ll get (20)(5) = 100 peas from the top 20% of my crop. If the remaining 80 pods yield an average of a measly one pea each, that’ll be 80 peas, which is a lot more than 20% of the whole.
Check my math, but I make it that I would need the best 20 pods yielding an average of 7 peas each, and the other 80 yielding an average of 0.5 peas each, to get close to the claimed “80% of peas come from 20% of the pods”. Wow, that is apparently one shitty pea variety Pareto’s got there!
My own garden pea harvests aren’t such a much, but I’ve never had a crop where four-fifths of the pods were nearly empty and the other one-fifth were crammed to bursting. If I did, I’d write a nasty letter to the seed company about it. That’s not how agricultural breeders design their plant yields to work. (What I do tend to get, in fact, are a lot of pods with a few peas in them, and a few pods crammed with many peas, and a few pods with one or no peas: bell-curve distribution FTW.)
So, subject to valid correction which I promise to receive in a becoming spirit of humility if forthcoming, I’m gonna hypothesize that this claim about Pareto’s peas is derived from some corporate-motivational-bullshit urban legend. AFAICT, there is no reason to think it’s reliable regarding the realities of either Pareto’s biography or pea yields.
Which is another reason I think we need to be careful about the hype surrounding the Pareto principle. As I said, we need meaningful mathematical and empirical constraints to make sure we can tell the difference between reliable models for real-world data and superficial “mathy” speculation.