Understanding the Pareto Principle (The 80/20 Rule)
Originally, the Pareto Principle referred to the observation that 80% of Italy’s wealth belonged to only 20% of the population. More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly. It can mean all of the following things: 20% of the input creates 80% of the result20% of the workers produce 80% of the result20% of the customers create 80% of the revenue20% of the bugs cause 80% of the crashes20% of the features cause 80% of the usageAnd on and on… But be careful when using this idea! First, there’s a common misconception that the numbers 20 and 80 must add to 100 — they don’t! 20% of the workers could create 10% of the result. Also recognize that the numbers don’t have to be “20%” and “80%” exactly. Life Isn’t Fair What does it mean when we say “things aren’t distributed evenly”? But that isn’t always the case: The 80/20 rule observes that most things have an unequal distribution. Of course, this ratio can change. Hi!
Related: Clarifying Priorities
• Making Decisions
• Problem Decisions