Pareto Analysis

Pareto Analysis is a decision-making technique based on the 80/20 rule, which suggests that roughly 80% of effects come from 20% of causes. In practical terms, it means that a small number of factors often contribute to the majority of problems or results. For instance, in a business, a few key products might generate most of the sales. By identifying and focusing on these critical factors, individuals and organizations can prioritize their efforts more effectively, leading to better outcomes and efficient resource allocation.