﻿The Pareto Principle (80/20 Rule) Explained with Charts,
Graphs, and Examples Pin Me  Explaining Pareto's 80/20 Rule
written by: Michele McDonough • edited by: Ronda Bowen •
updated: 1/2/2011  The Pareto Principle is such a simple rule,
but it seems to pop up time and time again in a number of
different applications. We'll take a deeper look at the 80/20
rule, including how it originated and what it really means.    •
slide 1 of 6      The Origins of the Pareto Principle
Vilfredo Pareto (1848-1923) might not be a household name, but
his accomplishments and observations form the basis of a number
of theories in a wide variety of fields from economics to
philosophy. One of his most famous observations forms the basis
for the Pareto Principle, also known as the 80/20 Rule. This
principle basically states that 80% of the "outcomes" come from
20% of the "inputs." However, I use the terms "inputs" and
"outcomes" quite loosely here, because the principle is more
far-reaching than that.      As the story goes,