The Pareto Principle, or more commonly the “80/20 rule”, is based upon the observation that 80% of the consequences of something are attributable to 20% of the causes.  The quality guru Joseph Moses Juran named the Principle in 1941 after the Italian economist who, in 1896, observed that 80% of the land in Italy was owned by 20% of the population.  The centenarian also similarly observed that 80% of quality problems result from 20% of the causes.  In the business world we also see that 80% of a company’s revenue is generated by only 20% of its customers.  As with life, things are not distributed either evenly or even fairly. Continue reading →