[…] them improves your quality of live 1,000 times at minimal cost. For more info on Pareto refer here. For more general business management ideas including this, refer […]
[…] Understanding the Pareto Principle (The 80/20 Rule), Better Explained […]
[…] By now you’re probably wondering what this little history lesson has to do with you, and how it can help you manage your time and accomplish your goals. It boils down to this: most of the results in any given situation are determined by a small number of inputs. When you know this, and learn to recognize what functions are vital, you can learn to focus your effort on the few tasks that really make a difference to the outcome. And best of all, you can apply this rule to almost anything – just don’t get hung up on the numbers since they may not always break down to exactly 80/20. What matters is that you focus on the few activities that account for the majority of your success and happiness. Let’s try applying this to real life situations. […]
[…] use for estimation and prioritization purposes had been born out across a wide set of conditions (1 2 3 4). Applying the Pareto Principle to Risk Management yields the following […]
[…] is a principle in management known as the 80/20 rule, or historically known as The Pareto Principle. This principle is universal and can be used in both business and […]
[…] me, this is huge! In fact, where I come from we tended to use an adaptation of the Pareto principle, i.e. an 80-20 distribution, so this graphic helps make my point a fortiori. Now let me get to my […]
I thought this article was great! I like the way it was explain in plain english. I am a student and it gave me a better picture, than the short paragraph in the book and my professors atempt. Thank you!
Such a simple and efficient way to explain it! I’m seeing that about 20% of the comments are taking this article far too literally! 
As a network tech I find through observation that the general idea of the 80/20 to be abundant. On average, 80% of the support calls are from the same 20% of users. 80% of the data use on the servers is from 20% of users. 80% of faults are results of the 20% common causes. Yes these observations vary from time to time, however as a GENERAL guide we know where to focus our energy and time on making things more efficient on the network!
@AndyM: Glad you liked it! Yes, as you say these are general principles, not laws of nature. You’ve hit the key idea: some inputs (customers, etc.) account for more than their share of outputs (time, load, etc.). The Pareto principle is all about getting the best bang for the buck.
[…] jukebox company. Anderson explains that the traditional model of economics generally follows the 80/20 Rule, that is “20 percent of products account for 80 percent of sales (and usually 100 percent of […]
[…] Understanding the Pareto Principle (The 80/20 Rule) | BetterExplained […]
[…] The Pareto principle – often referred to as the 80/20 rule – says that 80% of your success in any given field is often due to 20% of your effort. […]
May I use part of your article in a book that I am thinking of wrıtıng?
@Faik: Yes, you may use a reasonable excerpt as long as you provide attribution. Thanks!
Kalid,
Thanks. The attribution will of course be provided. Again thanks for the approval.
[…] The Pareto principle – often referred to as the 80/20 rule – says that 80% of your success in any given field is often due to 20% of your effort. […]
[…] So what you may ask have I concluded after my investigations? Rather than present a conclusion without evidence, I have offer the following hypothesis: For Internet enabled businesses, the Long Tail trumps the Pareto Principle. […]