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.

Advisor ideas

„If we do not provide workers with information, they will get it elsewhere themselves.“ more >>

Jiří Střelec Jiří Střelec

Indeed, we live in the world supersaturated with information. Still, people covet the information which they need for their jobs or personal lives. If we fail to provide them with information, particularly in conflict or critical situations, they will make great effort to obtain it or make it up. Naturally, they will do so with regard to their knowledge and interests. Invariably, there is appropriate information to be communicated.

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