The Pareto Principle (80/20 Rule)

Visual Representation

80% of Results

20% of Causes

The pie chart shows the typical 80/20 distribution where a small portion of inputs (20%) generates the majority of outputs (80%).

Top 20%
Customers

$90k

Middle 30%
Customers

$30k

Bottom 50%
Customers

$20k

In this example, 20% of customers generate 64% of total revenue ($90k out of $140k total).

Adjust the slider to see how different distributions compare to the classic 80/20 rule:

Vital Few Percentage: 20%

20% Input

80%

80% Input

20%

80% of sales come from 20% of clients

80% of wealth is owned by 20% of people

80% of bugs come from 20% of code

80% of productivity comes from 20% of tasks

80% of healthcare costs come from 20% of patients

80% of knowledge comes from 20% of study material

The Pareto Principle teaches us to:

Focus on the vital few: Identify which 20% of activities produce 80% of results
Optimize resource allocation: Invest more time and energy in high-impact areas
Eliminate inefficiencies: Reduce time spent on low-value activities
Make data-driven decisions: Use the 80/20 analysis to guide strategy

Remember: The exact numbers don't have to be 80/20 - the principle is about recognizing that unequal distribution is natural in many systems.