Think Better · 45 sec
Pareto principle
A compact thinking tool for spotting patterns and avoiding mistakes.
The useful idea
- The useful idea
The Pareto principle (also known as the 80:20 rule, the law of the vital few and the principle of factor sparsity) states that, for many outcomes, roughly 80% of consequences come from 20% of causes (the
- How it works
In 1941, management consultant Joseph M.
- Why it matters
Juran developed the concept in the context of quality control and improvement after reading the works of Italian sociologist and economist Vilfredo Pareto, who wrote in 1906 about the 80:20 connection
Why this matters
Use Pareto principle as a quick check before trusting your first conclusion.
Try this
Use Pareto principle as a quick check before trusting your first conclusion.
Test your recall
Which idea belongs to the explanation of Pareto principle?
- Why it matters
- How it works
- The useful idea — correct
The Pareto principle (also known as the 80:20 rule, the law of the vital few and the principle of factor sparsity) states that, for many outcomes, roughly 80% of consequences come from 20% of causes (the