Have you heard of the Pareto Principle?

Posted December 1st, 2010 by Cathy


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.

Business management thinker 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.

It is now a common rule of thumb adopted in business; e.g., “80% of your sales come from 20% of your clients.”

(Source: Wikipedia)

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