Paretto Principle

The Pareto Principle, also known as the 80/20 rule, suggests that roughly 80% of results come from 20% of efforts. This concept highlights that a small portion of causes or inputs often lead to the majority of outcomes. For example, in business, a few key customers might generate most of the revenue, or a small number of tasks might account for most of the productivity. Recognizing this can help focus resources on the most impactful areas to improve efficiency and achieve better results with less wasted effort.