The Pareto Principle

The Pareto Principle, often called the 80/20 rule, suggests that a small portion of causes leads to a large portion of effects. In general knowledge, this means that roughly 80% of results come from 20% of efforts. For example, in business, 20% of customers might generate 80% of sales. Understanding this principle helps individuals and organizations focus on the most impactful areas, maximizing efficiency and effectiveness by prioritizing key actions over less important ones. It emphasizes the importance of identifying and leveraging the critical few factors that drive success.