PARETO PRINCIPLES

"The minority of input produces the majority of results." You might have already become familiar with the popular saying above. Or perhaps, the more popular one: "80:20 Principle", which states the fact that we put in only 20% of our efforts to achieve 80% output.

This principle was formulated by Vilfredo Pareto (1848 - 1923), the principle later known as "The Pareto Principle", an economist from Italy who discovered capitalism in the country's distribution of wealth and ownership of property at the time, in which 80% of the country's wealth and ownership of property had been spread out to the lesser part of Italy's entire population, constituting 20% of Italy's entire population.

Today, the principle has become one of the most popular management jargons, with the general principle of maximum output (work, activities, life) equals to minimum input (resources).

The figure 20-80% has been a constant discourse in recent years, in which many economists argue that ...