CHAPTER 4
THE 80/20 RULE
In 1906 an Italian economist, Vilfredo Pareto, found an intriguing correlation. He noticed 20% of the pea pods in his garden held 80% of the peas. Studying the peas prompted him to take a closer look at this ratio. In one of his initial discoveries, he found 80% of the land in his area was owned by 20% of the people. After a detailed study, he observed this ratio held true in many aspects of life. The Pareto Principle, or the 80/20 rule, is the result of his findings.
For example: • 80% of your income is derived from 20% of your work.
• 80% of a business’s income is derived from 20% of its customers. • 80% of your value to an employer is derived from 20% of your work. • • •
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