80-20 rule
Unequal input distribution
The 80-20 rule is the observation that roughly 80 percent of effects come from 20 percent of causes.
Also called the Pareto principle, it appears across domains: 20 percent of customers generate 80 percent of revenue, 20 percent of bugs cause 80 percent of crashes.
The ratio is approximate—the insight is that outcomes distribute unevenly, with a small portion of inputs producing most results.
Focus on the 20 percent that matters.
- prioritizationRanking by importance
- low-hanging fruitReadily attainable objectives
- power lawsProportional exponential relationships
- proportionalityScaling relationship between quantities
- productivityOutput relative to input
bang for your buck · resource allocation · sales forecasting · revenue streams · effectiveness · inventory management · 80 percent · cost-benefit analysis · market analysis · data analysis · time management · minimalism · strategic planning · risk assessment · leverage · optimization · probability theory · competitive advantage
- theories & lawssupply and demand, law of demand, law of supply, Parkinson's law, Peter principle
- Power Lawslong tail
- Pareto conceptspower law
- statisticsmean, median, mode, variance, standard deviation
80-20 ruleegalitarianism
Philosophy of universal equality
comprehensive coverage · leaving no stone unturned · perfectionism · completionism
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