Pareto Principle (80_20 Rule)

The video explains the Pareto principle, also known as the 80/20 rule, which states that 80% of outcomes result from 20% of efforts. This principle is widely used in organizational practices to link outputs to contributing factors. It is frequently applied in process management, decision-making, and planning. Managers aim to identify the critical 20% of efforts that yield the most significant results and allocate resources accordingly, while minimizing resources on less impactful efforts.

What is the Pareto principle also known as?

What percentage of output comes from 20% of effort according to the Pareto principle?

In what areas is the Pareto principle frequently employed?

What do managers seek to identify according to the Pareto principle?

What should be done with the 80% of effort that has very little effect on total output?