Pareto Principle

publication date 08.03.2014

Vilfredo Pareto, Italian economist define Pareto principle. He found that 80% of assets in Italy is held by 20% of the population. Pareto principle reads 80% effect is caused by only 20% of the causes. If we want to eliminate 80% of the losses, focus activities only predefined problems in the range of 20%.

Pareto principle gave rise to Pareto analysis, which is used for troubleshooting through the most important causes see Pareto analysis.

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Jiří Střelec Jiří Střelec

The best ideas cross our minds when we are really preoccupied with a particular matter, gathering information, making connections, proposing solutions. In sum, when we deploy all of our capabilities to process the information available. Not just a single day, but longer. When we live the given matter today, tomorrow or even the following week or year. You would be amazed how many possibilities would suddenly emerge. If, while writing the project down, your mind is concerned about the coming sports weekend, the project cannot be brilliant but only formal.