80/20 Rule

I always like how many of these theories come from someone simply observing something. In this case Italian economist Vilfredo Pareto noticed that 80% of his peas were coming from 20% of the pods. He then likened this to economic ownership in Italy with 80% of the land being owned by only 20% of the population. This theory was later adapted to what is called Murphy’s law of management.

An interesting point is put forward when Barabasi says, “In most cases four-fifths of our efforts are largely irrelevant”. In a lot of ways this is true.

Of course the 80/20 rule can’t apply to everything but it’s an interesting rule to apply to things.