80/20 vs LEAN vs SIX SIGMA; A Balance Of Pragmatism vs Perfection

Introduced as a management tool by Joseph Juran in the 1940s, the well-known 80/20 Rule, also called the Pareto Principle or Law of the Vital Few, illustrates that 20% of causes are responsible for 80% of the effects. This principle emphasizes that a modest investment in time, effort, or resources can yield a majority of desired returns.

Intriguingly, I’ve recently noticed a growing acceptance and emphasis of the 80/20 Rule within management and Lean Six Sigma communities. Traditionally, this rule was just one tool among many. But now, I see organizations embracing the 80/20 Rule as a valid outcome on its own, for interim project success. For example, I recently encountered a Vice President of a Fortune 500 corporation with the title VP of Business Transformation & 80/20. I have seen position postings requiring “able to apply an 80/20 mindset.” Among other observations.

Like many of you, over my years of leadership balancing time, manpower, and budgets, I have been led to formalize a pragmatic approach to continuous improvement. I categorize efficiency improvements into three levels of awareness: obvious (80/20 Rule), subtle (Lean), and invisible (Six Sigma). Each layer builds on the previous one, requiring deeper analysis and attention to process detail.

?????????????? (80/20 Rule): These low-effort, high-reward changes often include optimizing workflows, improving communication, and reinforcing operational discipline through tools like 5S (sort, set in order, shine, standardize, and sustain). Simple changes in policies, training, and workplace organization are also actions that fall into this category.

???????????? (Lean): Lean principles target inefficiencies that aren't immediately visible. We expect the structure and application of DMAIC (define, measure, analyze, improve, and control) to reveal inefficiencies that were not previously noticed. As such, Lean enables us to reduce waste in areas such as workflow, material usage, and process sequencing.

?????????????????? (Six Sigma): Once the obvious and subtle improvements are made, Six Sigma with its design of experiments and statistical approaches come into play to tackle the root causes of invisible inefficiencies, process variation, and persistent product defects.

Applying the 80/20 Rule to the obvious, Lean Waste to the subtle, and then Six Sigma statistics to the invisible is an efficient approach.?It moves the organization forward with the least resources, for the fastest and greatest gains, and appropriate selective precision.

My message is that with many operations, it is okay to redefine a mindset around Lean Six Sigma, moving away from the constant expectation of near perfection.?Leaders can be comfortable with using resource-constraints and the voice of the customer to guide where selective investment should be for an 80/20, Lean waste, or Six Sigma statistical approach to product and service offerings.