Skip to content
Home » Blog » Pareto Principle

Pareto Principle

  • by

The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.

Management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who noted the 80/20 connection while at the University of Lausanne in 1896, as published in his first work, Cours d’économie politique. In it, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population.

Why am I talking about the Pareto principle as a Business Coach?
It is an axiom of business management that “80% of sales come from 20% of clients”.

This can also be applied to the success of Business when looking at areas such as Productivity. Do you find yourself asking the following question?

“Why is it that the Top 20% of Business generate 80% of the Profits?”
If you look at it from a Productivity point of view, the question would be:
“What are the Top 20% of Daily tasks that generate 80% of the result?”

Hit me up for a chat, or a coffee, and I can show you some ideas.