The **Pareto Principle**, also known as the **80/20 Rule**, is a concept that suggests:
> **Roughly 80% of outcomes come from 20% of causes.**
It originated from **[[Vilfredo Pareto]]**, an Italian economist, who observed in the late 1800s that **80% of Italy’s land was owned by 20% of the population**. Since then, this idea has been applied broadly across business, economics, productivity, and more.
### Common Applications:
- **Business & Sales**:
80% of sales often come from 20% of customers.
- **Productivity**:
80% of results can come from 20% of the tasks you do.
- **Software & Tech**:
80% of users use 20% of the features.
- **Customer Service**:
80% of complaints come from 20% of customers.
### Important Notes:
- It's not a strict mathematical rule — it’s more of a general observation or heuristic.
- The exact ratio might vary (e.g., 70/30, 90/10), but the idea is the **imbalance between input and output**.
### Why it’s Useful:
The Pareto Principle helps you **focus on what matters most** — by identifying the critical few (20%) that produce the greatest results (80%), you can manage your time, resources, and energy more effectively.