The Resilient Mind

The Pareto principle, also known as the 80/20 rule, states that 80% of the effects in any system come from 20% of the causes. It is a concept that originated from Italian economist Vilfredo Pareto, who observed that 80% of Italy’s land was owned by 20% of its population. The principle is now widely applied in various fields, such as business, economics, and social sciences, to identify the most significant factors or inputs that contribute to a desired outcome. For example, a business might discover that 80% of their sales come from 20% of their customers, or that 80% of their problems are caused by 20% of their processes or employees. By focusing on the key 20% and optimizing it, one can potentially achieve a disproportionate amount of the desired results.