The Pareto principle


20% of products used in food, form 80% fat. 20% of your neighbors provide 80% of the noise. 20% of employees in your office make 80% of all work. The 80/20 rule you’ll find anywhere.

In 1897, Italian economist by the name of Pareto estimated that 20% of British families own 80% of the money. He tested it on a rule green peas in your garden: 20% of pods give 80% of the total harvest. This pattern works under all circumstances and in all cases.

The Pareto principle can be stated as: any situation is always a minority that is more important and useful than others.

On practice:


The Pareto principle (20% of efforts provide 80% of the results)
– For business: 20% of customers generate 80% of your income. They require your attention.
– For students: 20% of the pages of the textbook contains 80% of all necessary information. Focus on the 20% – and grasp the new book.
– For all that not all of our daily tasks are equally important. Of the ten cases that you have planned for today, there are two more important than the other eight.

We must learn to identify the 20% to start with them. If you do not focus on the 20%, you have wasted 80% of the time. We will never alter all things, but it can handle 20%. And do not kill for the remaining 80%. Ability to prioritize and not grasp it all at once – one of the most important qualities. At first, priorities can not be entirely accurate apart, but regular exercise this will power the emphasis will shift to the side of the main results, and not sprayed on trifles.

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3 thoughts on “The Pareto principle

  1. ankithaa68 says:

    Well, I’m more of a skeptic. I agree with the overall concept of certain things being more important than the rest but for it to be 80/20 everytime? Hmm.

    There is this Forbes article on Perry Marshall’s book, “80/20 Sales and Marketing” –

    You might want to check out the book since you are interested in marketing as well 🙂

  2. Hanna Hotsyk says:

    Very interesting information.
    Can try it out while getting ready for exams in order to save time. 🙂

  3. when it comes to the customer, it all comes down to customer segmentation. Thats why its done. Finding out the different needs of the customers and offering your most valuable customers (the 20%) the best possible service. Keep them coming back, up selling. IN general, just a law or a guideline, but it demonstrates very well that strategy has to be focused. Dont get stuck in the middle

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