What is the history of the Pareto Principle?

What is the history of the Pareto Principle?

The Pareto Principle, also known as the 80/20 rule, was named after Italian economist Vilfredo Pareto, who observed in 1896 that 80% of Italy's land was owned by 20% of the population.

How did it become popular in business?

It gained popularity in business during the 20th century, particularly in the 1980s, when it was applied to productivity and efficiency, suggesting that 80% of results come from 20% of efforts.

Can you give me some examples of its application?

Sure! In sales, it often means that 80% of revenue comes from 20% of customers. In software development, 80% of errors may come from 20% of the code.

Are there any criticisms of the Pareto Principle?

Yes, some critics argue that it oversimplifies complex systems and may not always hold true in every situation.