Pedro Arantes
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Pareto Principle

The Pareto Principle states that roughly 80% of the consequences come from 20% of the causes for many outcomes.
#80-20-rule
Zettelkasten, July 02, 2021
## Notes - The Pareto Principle states that roughly 80% of the consequences come from 20% of the causes for many outcomes. - For instance, 80% of funds raised come from 20% of donors. - Also called **the 80/20 rule** or **law of the vital few**. - It's a [system mental model](/zettel/system-mental-models) because it explains the proportion between causes and effects. - Vilfredo Pareto saw the 80/20 connection in 1896 when noted that 20% of the population owned approximately 80% of the land in Italy. - In business, about 80% of sales come from 20% of clients. - In economics, approximately 20% of the population owns 80% of Italy's lands. - In computer science, Microsoft noted that 80% fixing the top 20% of the most-reported bugs, 80% of the erros would be eliminated. ## References - [Wikipedia. Pareto principle](https://en.wikipedia.org/wiki/Pareto_principle) ## Backlinks - [Pareto Paradox](/zettel/pareto-paradox)
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