Pareto Principle

A concept, which is also known as the 80/20 rule, that states that approximately 80% of an effect, consequence or an observation is related to approximately 20% of causes, features or characteristics. For example, 80% of sales might be made by 20% of a customer base, or 80% of comments might be received from 20% of a population or user group. Alternatively, 80% of the major influences on a turfgrass surface might be strongly related to 20% of performance standards, or 80% of a project outcome might be achieved by 20% of contributors.

An analysis of a problem can be carried out to identify areas for improvement, with the principle highlighting an imbalance between inputs and outputs or outcomes. Those areas which are identified as having the greatest impact from the least input activity would typically be prioritised, essentially getting the ‘most for your money’.

The principle can be used as a decision-making, or contribution to a decision-making, tool to help target available resources on a few significant factors that can maximise returns on investment and efficiency of resource inputs. These key factors can also become a focus for innovation and continuous improvement with the aim to further increase efficiencies and output returns.