What is the 80/20 Rule?

The 80/20 rule is simple: in many situations, about 80% of effects come from 20% of causes. This means a small number of things (the vital 20%) are responsible for a large part of what happens (80% of results).

The rule is named after Vilfredo Pareto, an Italian economist in the early 1900s. He noticed that about 80% of Italy’s land was owned by just 20% of the people. He looked into other countries and saw a similar pattern – most wealth was held by a small part of the population.

The 80/20 rule often means that 80% of a company’s sales come from 20% of its customers. This helps businesses understand which customers are the most valuable and focus their efforts on keeping them happy. Similarly, in productivity, many people find that 80% of their results come from 20% of their activities. By thoughtfully identifying and prioritizing key tasks, individuals can optimize their efficiency and work towards achieving more favorable outcomes.

The 80/20 rule is not a strict mathematical formula but a general guideline. The exact percentages can vary, but the main idea remains the same: a small number of causes often lead to a large portion of the results. This principle can be applied to various aspects of life, such as time management, health, and personal relationships.