The Pareto Principle (80/20 Rule)

The Pareto Principle, also known as the 80/20 Rule, suggests that roughly 80% of effects come from 20% of causes. For example, in business, a small portion of customers might generate most of the revenue, or a few key tasks might contribute most to productivity. It highlights that effort and results are often unevenly distributed, helping identify where to focus for maximum impact. Recognizing this imbalance allows individuals and organizations to prioritize effectively, leveraging the most influential factors to achieve better outcomes with less wasted effort.