Pareto Principle or 80/20 Rule soft skills Ezhilarasan

Understanding the Pareto Principle or The 80/20 Rule

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Originally, the Pareto Principle referred to the observation that 80% of Italy’s wealth belonged to only 20% of the population.

More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly. 

It can mean all of the following things:

20% of the input creates 80% of the results

20% of the workers produce 80% of the result

20% of the customers create 80% of the revenue

20% of the bugs cause 80% of the crashes

20% of the features cause 80% of the usage and on and on…

But be careful when using this idea! First, there’s a common misconception that the numbers 20 and 80 must add to 100 — they don’t!

20% of the workers could create 10% of the result. Or 50%. Or 80%. Or 99%, or even 100%. Think about it — in a group of 100 workers, 20 could do all the work while the other 80 goof off. In that case, 20% of the workers did 100% of the work. Remember that the 80/20 rule is a rough guide about typical distributions.

Also recognize that the numbers don’t have to be “20%” and “80%” exactly. 

The key point is that most things in life (effort, reward, output) are not distributed evenly – some contribute more than others.

Source :


** For more visit - Wikipedia 

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Collected
by
Ezhilarasan Venkatachalam
Salem, South India.

Tamil Based English Trainer