The Power of the 80/20 Rule: Boost Your Efficiency and Effectiveness in Business and Time Management

80/20 rule

A concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers.

The 80/20 rule, also known as the Pareto principle, is a concept used in various fields including economics, management, and productivity. The principle states that roughly 80% of effects come from 20% of the causes. In other words, most outcomes are driven by a small number of factors.

This principle can be applied to many different situations. For example, in business, 80% of a company’s profits may come from 20% of its customers. In time management, 80% of a person’s productive time may come from 20% of their activities. The 80/20 rule can be used to identify the most important factors and prioritize them accordingly.

The 80/20 rule is not always exactly 80/20, but the basic idea is that most of the output or results come from a minority of input or effort. This concept can be very helpful in increasing efficiency and effectiveness by focusing on the most important factors or activities.

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