80/20 rule

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80/20 rule

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80/20 rule

A widely felt conviction that there is an inherent 80/20 relationship between cause and effect. Also called the "Pareto principle" and the "law of the vital few." For example, in a software system, 80% of the errors are caused by 20% of the code. Other examples are 20% of the features in a product are used 80% of the time, and 80% of revenue comes from 20% of the customers.
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According to Vilfredo Pareto, the proponent of the Pareto Principle, 20 per cent of a leader's activities produce 80 per cent of his result, while 80 per cent of his activities are responsible for 20 per cent of his result.
The Pareto principle, also known as the "80/20" rule, may be helpful here.
Summary: You may call them star employees, the best performers, or the 20 per cent who do 80 per cent of the work (the Pareto principle).
Fortunately, there are some great options like the Pareto Principle, "maximax" and "maximin" strategies, constraint theory, and an Integrated Priority List (IPL) that both PMs and FMs can use to inform and develop readiness rather than investment recommendations for leaders.
The Pareto Principle, a thought-provoking construct in business and Professional research.
Another problem is how 80 percent of depositors, mostly ordinary people on a Pareto principle estimate, hardly keep their P2,000 minimum bank balances.
He ends by proposing what economists call the 'Pareto Principle' move, and pushes for a redistribution of material resources-to make life better for the impoverished population of the world, and fill the affluent with happiness.
The foremost purpose of the paper was to explore the relationship between the Pareto Principle and employees' compensation.
Assuming the Pareto Principle is true that up to 80 percent of our results come from 20 percent of our activities, we should strive to invest 80 percent of our time into those specific tasks that we're paid to do.
The 80/20 rule, named after Vilfredo Federico Damaso Pareto, is known as the Pareto principle. It is applicable to a great many things like 80 percent of sales are generated by 20 percent of a company's customers.
We ought to adhere to the ex ante Pareto principle.