Pareto Principle

Definition

The principle that 80% of outcomes often result from 20% of causes, highlighting the importance of prioritization.

Key Features

• Resource Allocation: Focus efforts on the most impactful 20%.
• Applications Across Fields: Time management, business, and economics.

Real World Examples

• A company realizing that 80% of sales come from 20% of its clients.

Applications

• Time Management: Prioritizing high-value tasks.
• Business Strategy: Focusing on top-performing products or customers.

Related Concepts

• Leverage Points
• 80/20 Rule