Pareto Rule: what is it

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Pareto Rule: what is it
Pareto Rule: what is it

Video: The 80/20 Rule - What is it? 2024, June

Video: The 80/20 Rule - What is it? 2024, June
Anonim

The Italian Pareto in the 19th century deduced an interesting mathematical regularity, drawing attention to the fact that 20% of the pea seeds planted in the ground that were grafted to them brought 80% of the crop. After observing the agricultural culture, he came to the conclusion that this principle is applicable to any sphere of life: only 20% of the efforts made give 80% of the result. Today, this pattern is called the Pareto rule.

The Pareto rule is a very popular method of evaluating work productivity in most areas of the economy and industry. And psychologists apply this principle in self-development guides.

General wording

In fact, the rule can be applied to anything:

  • Only 20% of the factors influencing the situation provoke 80% of changes in it. Simply put, 20% of the input gives 80% of the output.

  • Only 20% of the literature read brings 80% of the knowledge.

  • Only 20% of the world's population have 80% of the world's capital.

  • Only 20% of the company's customers provide 80% of the profits.

  • Only 20% of drinkers consume 80% of all beer produced (the so-called "beer law", which is most often used for advertising).

Practical wording

In psychology, economics, paperwork, statistics and other sectors, the following wording is most often used in practice:

Only 20% of the effort can give 80% of the result.