Pareto Optimality or Pareto Efficient is a concept in economics that refers to a situation where no further improvement can be made to a system without making at least one another aspect of the system worse off.
In simple terms, Pareto Optimality is achieved when you cannot make someone/something better off without making someone/something else worse off.
Pareto Optimality can be used in Product Management as a guide to decision-making when there are trade-offs required and to find the most efficient way to allocate resources to achieve the greatest overall benefit.
Examples
- Feature Prioritization: Use Pareto Optimality to focus on the features that will provide the most value to a majority of users.
- A/B Testing: Use Pareto Optimality to focus on the variants that will have the biggest impact on most users.
- Feature Deprecation: Use Pareto Optimality to focus on the features that are no longer providing value to a majority of the users.
If you have any examples or insights, please share them in the comments!
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