Pareto Principle (also known as the 80-20 Rule) is the law of the vital few, which states that for many events, 80% of the effects come from 20% of the causes. Pareto noticed that 20% of the pea pods in his garden produced 80% of his peas. Other examples:
- In business, it’s been noted that 80% of sales come from 20% of clients.
- Most people wear 20% of their clothes (their favored clothes) 80% of the time.
- We spend 80% of our time with 20% of our acquaintances.