The Pareto Principle, also known as the 80/20 Rule, states that 80%

of the effects are caused by 20% of the causes.¹

What the principle is stating is that the really important items should be the select 20% that are responsible for 80% of the outcomes.   For example, as a general rule one will find that approximately  80% of the customer complaints are caused by 20% of the store's associates. Another example is when 20% of your employees are bringing in 80% of your firm's revenue.

In this lesson, we will cover the following topics: History of the Pareto Principle Personal Applications for the Pareto Principle Business Applications for the Pareto Prinicple Tips on properly applying the Pareto Principle Using Pareto Diagrams to discover the 20% you should focus on