The 80-20 rule

The Pareto principle (also known as the 80–20 rule) states that, for many events, roughly 80% of the effects come from 20% of the causes.

What? Hold on a second, you mean that 20% of our efforts gives us 80% of our success?

  • How we came up with that?

Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.

80-20 rule

In business; e.g., “80% of your sales come from 20% of your clients”. Mathematically, where something is shared among a sufficiently large set of participants, there must be a number k between 50 and 100 such that “k% is taken by (100 − k)% of the participants”. The number k may vary from 50 (in the case of equal distribution, i.e. 100% of the population have equal shares) to nearly 100 (when a tiny number of participants account for almost all of the resource). There is nothing special about the number 80% mathematically, but many real systems have k somewhere around this region of intermediate imbalance in distribution

  • Where you can find the Pareto principle?

Almost everywhere.

Whenever you try something new the 20% of your effort wiil give you the 80% of the final outcome!

  • How I can use this?

It depends! For example, some experts say that in a business ,since 20% of the people produce 80% of the results, you should focus your time on managing that 20%.Despite that you are never sure what this 20%  represents and finally what happens if this 20% change. In a personal scale you should focus in the 20% of your limited time that produce more of your results.If you are a student, this is huge.

 20-80 rule

  • In conclusion  

Spend your precious 20% efficiently !


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