80/20 Rule (Pareto Principle)

The 80/20 Rule, also known as the Pareto Principle, suggests that in many situations, roughly 80% of the effects come from 20% of the causes. For example, in business, about 80% of sales often come from 20% of customers. It highlights that a relatively small number of key factors can have a disproportionately large impact. Recognizing this pattern helps prioritize efforts—focusing on the most influential areas can lead to better efficiency and results in various fields such as sales, productivity, and problem-solving.