Spread the love

What Is the Pareto Principle?

If we talk about Pareto in short form i.e 80/20 rule. The Pareto Principle, named after esteemed Vilfredo Pareto, specifies that 80% of consequences come from 20% of the causes, asserting an unequal relationship between inputs and outputs. This principle serves as a general reminder that the relationship between inputs and outputs is not balanced. The Pareto Principle is also known as the Pareto Rule or the 80/20 Rule.https://a252458e4142182e9cf9d2ed0b0e07a3.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Tool point

  • The Pareto Principle states that 80% of consequences come from 20% of the causes.
  • The principle, which was derived from the imbalance of land ownership in Italy, is commonly used to illustrate the notion that not things are equal, and the minority owns the majority.
  • Unlike other principles, the Pareto Principle is merely an observation, not law. Although broadly applied, it does not apply to every scenario.