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Eighty-twenty principle (Pareto Principle)

The Pareto Principle is based on any situation where the few (20 per cent) are vital and the many (80 per cent) are of little significance.

It can be applied in many ways, eg:

  • 20 per cent of products make up 80 per cent of a company’s turnover
  • 20 per cent of prescriptions come from 80 per cent of doctors
  • Managers should focus time and effort on the 20 per cent of workload that produces 80% of results

See also:
Pareto principle

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