Pareto Principle (80/20 Rule)

What is the Pareto Principle? The Pareto Principle is also known as the 80-20

rule. The principle simply states that 80% of your product or output from your

effort comes from 20% of your effort. Now this has been observed through

organizational practice where you link output to the contributing factors or causes within the process. So this rule is frequently employed in process

management, decision-making, and planning. So what managers seek to do is identify

that 20% that is most closely related to the majority of the output and devote

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