The Pareto Principle Is More Useful Than It Looks

The 80/20 rule — 80% of results come from 20% of inputs — was originally observed by economist Vilfredo Pareto in Italian land ownership. It shows up everywhere: 20% of customers generate 80% of revenue, 20% of bugs cause 80% of crashes, 20% of SKUs drive 80% of sales. The business implication is to relentlessly identify and double down on the high-leverage 20%.

Source: The 80/20 Principle — Richard Koch