80:20 rule
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The 80:20 rule, also known as the Pareto principle, states that roughly 80% of consequences come from 20% of causes. It was developed by management consultant Joseph M. Juran in 1941 after reading the work of Vilfredo Pareto, who observed that about 80% of Italy's land was owned by 20% of the population. The principle is an adage of business management, often expressed as '80% of sales come from 20% of clients.'
Quick Facts
- Originator
- Joseph M. Juran
- Year of development
- 1941
- Original observation by
- Vilfredo Pareto
- Pareto's observation
- Approximately 80% of land in the Kingdom of Italy owned by 20% of the population
- Common business adage
- 80% of sales come from 20% of clients
Facts from the source article.
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Sources
Compiled from Wikipedia and the sources listed below. Text from Wikipedia is available under CC BY-SA 4.0; this entry is adapted from it.
- Wikipedia: Pareto principle (CC BY-SA 4.0).
- Word definitions: the Codexery glossary, each quoted from its Wikipedia article.
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