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What is the Pareto Principle (80/20 rule)? Meaning.

The Pareto Principle (80/20 rule) states that for many phenomena 80% of consequences stem from 20% of the causes. The idea has rule-of-thumb application in many places.

Some of these applications include:

20% of any advertising campaign produces 80% of the response.
20% of the employees perform 80% of the work.
20% of the clients are responsible for 80% of all revenues / profits.

The principle was suggested by management thinker and quality control pioneer Joseph M. Juran.

Juran described the Pareto principle as the principle of 'the vital few and the trivial many' (Quality Control Handbook, 1951). He named it after the Italian economist Vilfredo Pareto, who observed in 1897 that 80% of property in Italy was owned by 20% of the Italian population.

The principle can be viewed as recursive, Tipton Cole has observed that the Pareto Principle applies to the residue of its first application, yielding a "96-36" rule.

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The 3 most recent topics about: Pareto Principle (80-20 rule).

	How to Apply the Pareto Principle to Email You should also apply the 80/20 rule to your email inbox. WHY YOU SHOULD APPLY THE 80/20 RULE TO YOUR INBOX To make (...)

	Using the 80/20 Rule in Lean Management The Pareto principle can be used in lean practices so that an organization can achieve efficiency and effectiveness. Suc (...)

🔥	NEW Focus on the 20%, Most Important Tasks This principle basically states that 20% of the actions you could take will provide you with 80% of the benefits. So foc (...)

Best Practices about Pareto Principle (80-20 rule)

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🥇	The 80/20 Rule for Managers To organize their working process well, and to complete tasks effectively, managers use a big variety of resources inclu (...)

🥈	How do we Know what is the 20% in Pareto? Some may feel this is obvious, but my experience has shown that many managers and executives may not know what is actual (...)

🥉	Using the 80/20 Principle for Workforce Effectiveness Can this principle be widely applied, and include a company workforce? In regard to performance and effectiveness of per (...)

	Meta Pareto Principle The Pareto Principle has consistently proven to be right in 80% of the cases. There are of course exceptions, but for su (...)

	Pareto Principle versus ABC Analysis I would like to know what came first - or Pareto Principle? Both seem the same to me. So maybe one is the adaptation of (...)

	80-20 Rule in Broadcasting When Brian Tracy's "Eat that frog" introduced me to Pareto principle some years back, I called for our marketing books a (...)

	Pareto Principle for Designing Information Systems I’ve been spending a lot of time designing Information Systems for customers and found the Pareto principle also very us (...)

	Pareto Principle in Bible? Any sample? Noah? Other samples? I am looking for any information about any management theory in bible. No one try to ta (...)

	Beware: Pareto is Not About 80 and 20 Don't focus too much on the numbers: the principle is about the imbalance, not about '80' and '20'. Other ratio's than 8 (...)

	Danger of Pareto: Self Fulfilling Prophecy Although I agree with the Pareto principle, the danger is that we act to fulfill. How can we in our organizations and d (...)

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