The 20/80 Principle

The 20/80 principle was formulated by Vilfredo Paredo in the late 1800s. It states that roughly 80% of the effects come from 20% of the causes. Say, 20% of the carpet gets 80% of the wear. Or 20% of the customers provide 80% of the profits and so on and so forth.

This is not literal, nor should it be taken as such. I have found, through consideration, that although some people may say that it is true in all situations, I know that it is not applicable all around. One article that I read on the subject stated that 20% of the members of your family give you 80% of the love. I find that as ridiculous as it is untrue.

The 20/80 principle is useful in business matters and it is useful in statistics. In everyday life, we have to be more bohemian. We have to look at matters without so much of a left-brain-angles-and-steely-corners perspective, but with more of a soft, colorful, easy-go-with-the-flow kind of attitude. I’m not saying we shouldn’t be business-like and brisk, but that we can’t be that all the time.

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4 thoughts on “The 20/80 Principle

  1. I had never read this ideas, but of course, I agree that it is only useful (aplicable) in business.
    Good job! Well written and explained.

    Like

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