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80/20 Rule

The 80/20 rule states that 80 percent of the effects of something come from 20 percent of the causes.

The 80/20 rule is also known as the Pareto Principle after the Italian economist, Vilfredo Pareto, who first mathematically analyzed the distribution of wealth in his country.

The 80/20 rule helps prioritize improvement efforts. Working on the critical few (the 20%) causes can yield big gains.

The 80/20 rule will not always be exact. Sometimes it will be 76/42. The 80 and 20 in the 80/20 rule describe different things—they don’t have to add up to 100.

 

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