The Pareto Principle, also known as the 80/20 Rule, is a mental model suggesting that 80% of outcomes result from 20% of all causes.
The Pareto Principle is named after Vilfredo Pareto, an Italian economist who noticed 80% of Italy's wealth was owned by 20% of the population. This principle has been widely adopted in business and productivity contexts to suggest that 80% of results come from 20% of efforts or inputs. For example, it could mean in a company setting that 80% of profits come from 20% of clients, or 80% of complaints come from 20% of customers.
Efficiency is doing things right; effectiveness is doing the right things. Know where your 20% highly impactful activities are and focus on them. - Peter Drucker
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