Examples of the Pareto Principle in Action

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Once you understand this, you can start using that understanding to maximize profits, boost productivity, and see a higher return on your overall time investment in your business. What are Some Vilfredo Pareto was an Italian sociologist and economist during the early 1900s. His 80/20 rule first came about when he realized that 80 percent of Italy’s lands rested firmly in the hands of only 20 percent of the Italian population.

Pareto later realized that this same rule C Level Contact List really could be applied to just about anything. For instance, he realized that a mere 20 percent of the pea pods growing in his personal garden were responsible for producing 80 percent of the peas. Others have had excellent results applying the 80/20 rule to multiple examples of their own, as well. For example, Dr.



Joseph Juran successfully applied it to the concept of quality control during the 1940s, demonstrating that 20 percent of production issues were responsible for 80 percent of the overall defects in a product. Here are some more proven examples of the Pareto Principle in action. 20 percent of factories cause 80 percent of the associated pollution.