The wise 80/20 Rule 📊📈

The 80/20 Rule is the same as the Pareto Principle. It is also known as the "law of the vital few" or "factor sparsity principle". It was named after last name the Italian economist Vilfredo Pareto, who observed in 1906 that 20% of the population owned 80% of the land.

The 80/20 rule states that the results come from a smaller percentage of important causes (inputs)… In other words…roughly 20 percent of our actions will

dictate roughly 80 percent of results we will obtain. However, It is a concept, not a rigid mathematical law. The numbers do not have to add up to 100% (e.g., 20% of inputs could cause 90% of outcomes). 

In business it has been used as a “rule of thumb” for prioritization  (e.g., 20% of customers create 80% of sales) and productivity (20% of tasks yield 80% of value).