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PARETO

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stevenjoshua.dominno
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19 views4 pages

PARETO

Uploaded by

stevenjoshua.dominno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Pareto Principle

The 80/20 Rule


Definition of the Pareto Principle

• The Pareto Principle, also known as the 80/20


rule, is a principle that highlights how 80% of
effects or outcomes come from 20% of causes.
It was named after the Italian economist
Vilfredo Pareto, who observed this imbalance
in land ownership. This principle has been
applied widely in business, management, and
everyday life.
• In the context of business, the Pareto
Principle suggests that a large portion
of results often comes from a small
portion of inputs. For example, 80% of
Application in a company's revenue may come from
20% of its customers. Similarly, 80% of
Business customer complaints might be
attributed to 20% of recurring issues.
Understanding this can help
businesses prioritize the areas where
they invest time and resources.
Graphical
Representation

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