Pareto Principle

Pareto Principle

The Pareto principle is the power law distribution. It is also known as the 80/20 rule. It states that roughly 80% of consequences come from 20% of causes. It works across a wide variety of physical, biological and man-made phenomena. A business management motto states that 80% of sales come from 20% of clients. Other examples include 80% of crimes come from 20% of criminals, 80% of land is owned by 20% of population, 80% of accidents are caused by 20% of drivers. It is more of an observation rather than a rule, but they work through synchronicity.


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