Pareto Principle (80/20 rule)

Knowledge Center

• About
• Home
• Dictionary
• Encyclopedia
• Question?
• Views

• Register
• Log in
• Help

• Change & Organization
• Communication & Skills
• Decision-making & Valuation
• Ethics & Responsibility
• Finance & Investing
• HRM
• Knowledge & Intangibles
• Leadership
• Marketing
• Program & Project
• Strategy
• Supply Chain & Quality

Description of Pareto Principle (80/20 rule). Explanation.

Definition Pareto Principle (80/20 rule). Description.

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.

Pareto Principle (80-20 rule) Special Interest Group Special Interest Group (104 members)

Pareto Principle (80-20 rule) Forum   In the forum section you will find recent discussions within this knowledge area.   How to Apply the Pareto Principle to Email (0 reactions) You should also apply the 80/20 rule to your email inbox.           Meta Pareto Principle (2 reactions) The Pareto Principle has consistently proven to be right in ...           Pareto Principle versus ABC Analysis (0 reactions) I would like to know what came first -           Using the 80/20 Rule in Lean Management (0 reactions) The Pareto principle can be used in lean practices so that a...           80-20 Rule in Broadcasting (0 reactions) When Brian Tracy's "Eat that frog" introduced me to Pareto p...           Focus on the 20%, Most Important Tasks (0 reactions) This principle basically states that 20% of the actions you ...           Pareto Principle for Designing Information Systems (1 reactions) I’ve been spending a lot of time designing Information Syste...           Pareto Principle in Bible? (1 reactions) Any sample? Noah? Other samples? I am looking for any inform...           Beware: Pareto is Not About 80 and 20 (1 reactions) Don't focus too much on the numbers: the principle is about ...           Danger of Pareto: Self Fulfilling Prophecy (0 reactions) Although I agree with the Pareto principle, the danger is th...

Best Practices - Pareto Principle (80-20 rule) In the best practices section you will find the best forum discussions within this knowledge area.   The 80/20 Rule for Managers (23 reactions) To organize their working process well, and to complete task...           How do we Know what is the 20% in Pareto? (7 reactions) Some may feel this is obvious, but my experience has shown t...           Using the 80/20 Principle for Workforce Effectiveness (5 reactions) Can this principle be widely applied, and include a company ...

Expert Tips - Pareto Principle (80-20 rule) In the expert tips section you will find advices from experts within this knowledge area.   Analyze the Performance of your Business Through an 80/20 Lens Analyzing Business Performance Management...

Resources - Pareto Principle (80-20 rule) In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area. Time Management for Business Managers Time Management, ABC Analysis...   Pareto Principle Explained Understanding the Basics of the 80-20 Rule...   First Introduction to the 80/20 Rule (Pareto Principle) Understanding the Importance of the Pareto Principle in Time and Life Management...   Funny Introduction to Time Management Initial Understanding of Time Management, Start of Workshop / Training...   Remarkable Video of the 80-20 Rule. Visual Example 80-20 Rule Background, Pareto Principle Example...   Steve Jobs on Dr. Joseph Juran: Back to the Basics Quality Management, Focusing on the Most Important Things, Pareto Principle...   Time Management is a Misnomer. Manage Yourself! Advanced Time Management...   Summary of the 4 Quadrants of Time Management Initial Understanding of Time Management...     News about Pareto Principle (80-20 Rule)         Videos about Pareto Principle (80-20 Rule)         Presentations about Pareto Principle (80-20 Rule)         Books about Pareto Principle (80-20 Rule)         More about Pareto Principle (80-20 Rule)

Compare also: Root Cause Analysis  |  Time Management

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Human Resources  |  Marketing

More on Management  |  Return to Management Dictionary  | 

This ends our Pareto Principle (80/20 rule) summary and forum.