Pareto principle

E382867

The Pareto principle is an economic and management concept stating that roughly 80% of effects come from 20% of causes, often used to prioritize efforts and resources.

All labels observed (3)

Label Occurrences
Pareto principle canonical 7
90–10 rule 1
Pareto chart 1

How this entity was disambiguated

Statements (50)

Predicate Object
instanceOf decision-making tool ⓘ
economic principle ⓘ
heuristic rule ⓘ
management principle ⓘ
statistical observation ⓘ
alsoKnownAs 80/20 rule ⓘ
law of the vital few ⓘ
principle of factor sparsity ⓘ
appliedExample a minority of customers often generate a majority of revenue ⓘ
a minority of features often delivers most user value ⓘ
a small number of defects often cause most quality problems ⓘ
a small number of products often account for most sales ⓘ
a small portion of tasks often produces most results ⓘ
assumption causes of outcomes are unevenly distributed ⓘ
category empirical regularity ⓘ
management theory ⓘ
productivity technique ⓘ
coreIdea a small proportion of inputs often accounts for a large proportion of outputs ⓘ
roughly 80% of effects come from 20% of causes ⓘ
fieldOfUse business management ⓘ
economics ⓘ
marketing ⓘ
operations management ⓘ
productivity ⓘ
quality management ⓘ
risk management ⓘ
software engineering ⓘ
time management ⓘ
inspired Pareto chart ⓘ
isApproximate true ⓘ
isExactLaw false ⓘ
namedAfter Vilfredo Pareto ⓘ
originatedFrom Vilfredo Pareto's observation of income distribution in Italy ⓘ
relatedConcept ABC analysis ⓘ
Pareto distribution ⓘ
Pareto efficiency ⓘ
long tail ⓘ
power law ⓘ
supports focus on the vital few rather than the trivial many ⓘ
typicalRatio 70/30 ⓘ
80/20 ⓘ
90/10 ⓘ
usedFor customer segmentation ⓘ
defect analysis ⓘ
focusing on high-impact activities ⓘ
identifying key causes of problems ⓘ
inventory control ⓘ
prioritizing efforts ⓘ
resource allocation ⓘ
workload optimization ⓘ

How these facts were elicited

Referenced by (9)

Full triples — surface form annotated when it differs from this entity's canonical label.

Vilfredo Pareto → knownFor → Pareto principle ⓘ
Vilfredo Pareto → knownFor → Pareto principle ⓘ
subject linked to: Pareto
Pareto → hasDerivedConcept → Pareto principle ⓘ
Pareto → hasDerivedConcept → Pareto chart ⓘ
linked to: Pareto principle
Pareto distribution → relatedConcept → Pareto principle ⓘ
Sturgeon's Law → hasAbbreviation → 90–10 rule ⓘ
linked to: Pareto principle
Sturgeon's Law → relatedTo → Pareto principle ⓘ
Matthew effect → relatedTo → Pareto principle ⓘ