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?

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

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In what areas is the Pareto principle frequently employed?

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

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

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