Also known as the Pareto principle, 80/20 is a management concept based on a natural law: 80% of results come from 20% of causes. It is a tool used to prioritize and manage resources, focusing on the most important and impactful activities that generate the majority of results. The principle suggests that organizations can achieve significant improvement by focusing their efforts on the 20% of activities that generate 80% of their results, rather than spreading their resources non-strategically across all activities.
The 80/20 principle can be applied in various ways, including time management, problem solving, decision-making, and resource allocation. For example, in time management, individuals can use the 80/20 principle to identify the 20% of tasks that generate 80% of desired results and prioritize these activities. In problem solving, the principle can be used to identify the root causes of issues and focus on solving the most impactful problems.
The 80/20 principle is a useful tool for organizations to achieve more with limited resources, but it is important to remember that it is an approximation and not a strict rule. It is a useful guideline that can help organizations focus their efforts and resources more effectively.
