Apr
24
The 80-20 Rule–article 4 Of 6
In the late 1800s an Italian economist named Vilfredo Pareto was studying the distribution of wealth in European countries. He discovered a predictable imbalance in the distribution of wealth. He found that approximately 80 percent was controlled by approximately 20 percent of the population. This was later known as Parato’s Principle or the 80/20 rule. 1
The 80/20 rule is an observable natural phenomenon. It governs many scenarios in life in which 80 percent of the results come from 20 percent of the inputs. There is a beauty and elegance to life that repeats itself again and again. The 80/20 rule is one of these rules of thumb that reflects human nature, and how the world operates.
Category: Business Author: admin
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