What is the Pareto Principle also known as?

The Pareto Principle, commonly referred to as the 80/20 rule, states that roughly 80% of effects come from 20% of the causes. This principle is significant in various fields such as economics, business, and quality control, illustrating that a small portion of input or effort often leads to the majority of results or outcomes. For instance, in sales, it's often observed that a small group of customers generates the majority of revenue, emphasizing the importance of focusing on key contributors to maximize efficiency and effectiveness.

While other ratios like the 50/50, 70/30, and 90/10 rules have their own contexts and interpretations, they do not capture the specific insight provided by the Pareto Principle, which emphasizes the disproportionate relationship between causes and effects quantified through the 80/20 perspective. By understanding this principle, individuals and organizations can better prioritize their resources and efforts for optimal impact.