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What is the Pareto Principle? The Pareto Principle is also known as the 80-20
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rule. The principle simply states that 80% of your product or output from your
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effort comes from 20% of your effort. Now this has been observed through
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organizational practice where you link output to the contributing factors or causes within the process. So this rule is frequently employed in process
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management, decision-making, and planning. So what managers seek to do is identify
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that 20% that is most closely related to the majority of the output and devote
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additional attention or resources towards that 20% while diverting resources from the other 80% of effort which has very little effect on the total output
