What's "Pareto’s principle" ?

source:KF Quality    author:KFQ    2021-03-03 12:48:08

Pareto’s principle is also known as the "80/20 rule".

At the end of the 19th century, the Italian economist Vilfredo Pareto observed that 80% of the land was owned by 20% of the population; 20% of the peapods in his garden produced 80% of the peas, etc. and led to far-reaching theories, i.e. for many outcomes roughly 80% of consequences come from 20% of the causes (the “vital few”)

This principle has been applied to management as well, e.g., 80% of the time of meetings is devoted to 20% of the business, 80% of the profit comes from 20% of the sales; 20% of customers account for 80% of total profits; 20 percent of employees produce 80 percent of a company’s results; 20 percent of a given employee’s time yields 80 percent of their outputs; 20% of the most reported software bugs cause 80% of software crashes…


From kfquality.com