Pareto Principle: The 80/20 Rule

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The Pareto Principle, also known as the 80/20 rule, states that often 20% of the causes create around 80% of the outcomes while the remaining causes are responsible for the rest. Discovered by the Italian economist Vilfredo Pareto, the principle became a valuable rule of thumb that allows our mind to understand all sorts of complex distributions, focus on the essentials, and prioritize what to do next.
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This video was made with the support of our Patrons: Adam Berry, Alfred Holzheu, Anil Raut, ArkiTechy, Artur, azad bel, Badrah, Bradley Klimovitch, Cedric.Wang, Christoph Becker, cnotv, Cory McAbee, David Markham, Delandric Webb, Digital INnov8ors, Dr. Matthias Müller-Mellin, Duane Bemister, Elias Reuss, Eva Marie Koblin, F J V Souza Fh, Gerardo Enrique Nieto, Heart of Texas Play Therapy, LLC, Izzy, jakob steensig, Jeffrey Cassianna, Jim Pilgrim, Joanne Doyle, jun omar ebdane, Leonel, Liam Dalling, Linda Kinkead, Linus Linderoth, Lucia Simone Winston, M. Allen, Mambo no 9, Marcel, María, martin, Martin Streule, Martina Hrebenarova, Mathis Nu, Mezes.Macko, Michael Paradis, Natalie O’Brien, Okan Elibol, Oweeda Newton, Peihui, Povilas Ambrasas, Raymond Fujioka, SAMAR ABDULKADER DAKAK BADAWI, scripz, Sigrid, Solongo Ganbat, Stefan Gros, Suppasit Srisaeng, Taka Kondo, Takashi HIROSE, Tammy Frazier, Thomas Aschan, Yassine Hamza, Yvonne Clapham and all the others.Thank you! To join them visit www.patreon.com/sprouts
COLLABORATORS
Script: Ludovico Saint Amour di Chanaz and Jonas Koblin
Artist: Pascal Gaggelli
Voice: Matt Abbott
Coloring: Nalin
Editing: Peera Lertsukittipongsa
Production: Selina Bador
Sound Design: Miguel Ojeda
SOUNDTRACKS
A Toy’s Day Out - Shuan Frearson
DIG DEEPER with these top videos, games and resources:
Read about how the Pareto Principles relates to a Gaussian Normal Distribution
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Explore a thesis on the problematics of the Pareto Principle
papers.ssrn.com/sol3/papers.c...
Read how the principle is used in hospitals as a Quality Improvement Tool
www.ncbi.nlm.nih.gov/pmc/arti...
SOURCES
en.wikipedia.org/wiki/Pareto_...
en.wikipedia.org/wiki/Pareto_...
en.wikipedia.org/wiki/Vilfred...
www.ncbi.nlm.nih.gov/pmc/arti...
Classroom Activity
Visit our website to get access to recommend activity for the classroom on this topic!
CHAPTERS
00:00 The 80/20 Rule
00:25 Pareto Principle
00:57 Business Insights
01:09 Real life example
01:33 Pareto’s warning
02:07 What do you think?
02:26 Ending
02:40 Patrons credits
#sproutsschools #paretoprinciple #mathematics #history #education

[@jjones1102]

I remember the days of KZbin when 80% of the comment section came from 20% of viewers arguing with each other

[@Study-tf9mk]

😂😂

[@30pranaypawar17]

Also explains, 20% of employees do 80% of work, so lets just layoff the rest and make those 20% work a 100%. 😳

[@30pranaypawar17]

Without compensation...

[@jjones1102]

@@30pranaypawar17 “without compensation”… the good ole’ days 😂

[@DeepThinkersClub]

I remember when we were allowed to comment.

[@lovwanshichetan]

It's not just about numbers/percentage but it just simply means to focus on the part which gives more result first than deal with others later.

[@kjj26k]

The crook of the matter being that deal with the rest later. Most, after dealing with the 20% of note by putting in that 20% effort for 80% outcome, never go back and work on that ignored 80% issue to complete the final 20% of outcome, often resulting in that missed outcome becoming the new problematic 20%.

[@evil17]

@@kjj26kThat’s is how politics work.

[@fabolvaskarika7940]

@@evil17life not just politics. This theory more based on observation, than actual studies, researches. The devil in the details.

[@DefaultDerrick]

I love that its short and sweet without losing substance.

[@sprouts]

Keep learning:)

[@FranksPianoscape]

I was obsessed with the 80/20 rule that I read anything about it. Then I realized I spent 80% of my time reading about it and only 20% actually applying it 😂

[@sprouts]

😂

[@passdasalt]

I only watched 33 seconds of this video. I live by this rule.

[@Typical.Anomaly]

I checked your math. This comment is legit.

[@sudhanshunaik]

Most underrated content on KZbin

[@user-ye1go6hw9r]

Totally agree. As an autist, i only *wish* i could be so concise and effective when conveying ANY idea.

[@themadtrax6507]

@@user-ye1go6hw9rRelax, were human. Focus on happiness.

[@What-is-a-handle-is-it-a-tag]

I’m your 69th like, whatever that means to people.

[@banshwa]

My personal opinion is it makes a good starting point. Further examination adjusts the percentages to be greater or lesser making the split more accurate. Basically it is like all heuristics, useful to make an on the fly judgement but not to make precise decisions. Precise decisions require precise information.

[@maeva4406]

Really needed a visual representation of the 80/20 rule!! Thank you!

[@Feynman_Fries]

Whoever did the sketches deserves a thumbs up too.

[@sprouts]

Pascal did.

[@Feynman_Fries]

@@sprouts don't tell me it's some crazy AI app and not a human, I'll be sad.

[@jethrowbowdeen]

At work 20% of the employees do 80% of the work. And the other 80% do the other 20% of the work. I've watched this happen for years.

[@rsmdogtrailer7145]

And furthermore, as a superior, 20% of your staff not only cause 80% of your problems and use up 80% of your precious time, they are also responsible for 80% of your quality issues and 80% of your absentism rate. I found that out, after having statistically analyzed these figures in different teams.

[@PhokenKuul]

A LOT of companies rely on this to justify all kinds of poor management choices, like distribution of bonuses and raises, firings and hiring, promotions, and customer service. It is far better to do the research and statistical analysis.

[@user-zf3xb3qx8w]

30/40/30 Rule: 30% of people (or cows) make you money, 40% just eat and break even, and the bottom 30% COST you, but think they're great.

[@rashadbinrashed8784]

With respect, the numbers means no thing, but parito law reffered to choosing your priorties carefully that can lead to higher productivity

[@drrtfm]

80% of people will make the error of conflating category with entity. E.g., the 20% of Italians who own 80% of Italy change over time (because of death, bankruptcy, etc.).

[@user-ve2pr3ci6e]

LEARNING AND ENTERTAINING AMAZING FACTS

[@livewire1199]

Great channel

[@Emanon...]

It's a good rule of thumb, but mostly used wrongly. Especially the ones concerning labour and productivity.

[@rodraska]

Good explanation of the pareto principle. Also liked the cartoon style

[@EMSMDSolutions]

Love this. What software and process do you use to animate?

[@StubbyPhillips]

80% of people think "alot" is a word and 20% understand the difference between "your" and "you're."

[@lucasts2]

you can literally see the principle being applied in the comment section, where only a handful of comments receive all the likes!

[@kjj26k]

Because those comments were placed early, when the video received 80% of its views! (Not exactly, but I had to do it for the bit.)

[@What-is-a-handle-is-it-a-tag]

Underrated comment. (Had five likes when I saw it)

[@andrel8243]

I use this principle in 20 percent of my decisions

[@What-is-a-handle-is-it-a-tag]

😂

[@user-lh5os7hz4q]

Hi, could you consider make a video explaining constructivist theory?

[@at3649]

Task: Stack 10 building blocks on top of each other. Me only stacking 2 and cheering "I`m 80% done!" You failed me pareto principle, you failed me...

[@jooeyyjn]

20% of your blocks provided for 80% of your happiness.

[@kjj26k]

And 80% of your woe.

[@solidsnakeXY810]

Did you use the nintendo switch eshop loading sound effect for your intro?

[@I4improvement]

Can someone tell me about the software used to make this video.

[@sportswriter]

20% of all clips on youtube make 80% of algorithm

[@kidahard1574]

Keep winning

[@VivekSingh_ias]

Liked this format of CRITICALLY ANALYSING a theory…

[@murrayjennex1377]

I use the rule as a way to constantly prioritize, to do this you have to keep determining the 20%, you can't do it just once, and of course, for the rule to work, issues/customers/etc can't all be equal

[@knw-seeker6836]

I wish there would be a learning guide based on the Pareto principle for studying in school

[@patricklee8088]

Technically, there is. If you know the basics or fundamentals of a given subject (i.e. the "20%") you either already know or easily deduce a large remainder of said subject (i.e. the "80%"). For example, if you know the basic facts of WWII, you should be able to deduce the answer to the majority of the answers on a WWII test without having to study or memorize those particular answers and questions. Problem is so many districts (at least in the US) focus on getting kids to be "creative" that learning, memorizing, and utilizing the basics gets pushed to the side. As a result, you get kids who can create a bunch of projects, but never actually know what is their project was about.

[@knw-seeker6836]

@@patricklee8088 thanks for your insights I have to know the main idea and the details as it’s written and understand it So it would be the key words related to 20% content right?

[@patricklee8088]

@@knw-seeker6836 If we're talking about something like a literary, historical, or scientific text, then yes knowing 20% of the related vocabulary will definitely take you a long way. If we're talking about a high school vocab quiz for English or an elementary school spelling test, not so much.

[@stubby7934]

I see this at work...20% of us provide 80% of the productivity. Seeing as the remaining 80% of people get to stay and be lazy/useless, can you guess who's productivity has dropped off over the years? My favourite response these days is "As soon as you get the rest of the crew doing that/that much, I'll join in."

[@MokshDeva]

20% of your video cover 80% of content. Brilliant🎉

[@steelhead49]

Very interesting concept. Perhaps explained by some universal but yet to be explained phenomenon of human consciousness. Perhaps related to social conformity theories as shown in the Asch and other similar experiments.

[@steveoh9025]

No, it's far more likely based in the science of chaos and associated fractal patterns which are an emergent property observable in both natural and human-developed systems.

[@liam8370]

I don't think we should be asking how or where does this work but rather why does this work there are a lot of patterns in nature like golder ratio and fibanachi sequence to name a few but why? are they the result of some other properties of the universe if so what does that mean???

[@kjj26k]

If reality was just complete, random chaos, we wouldn't be here to perceive it, nothing would. That anything is worth any note at all is is both reason and result of the universe having some order in it. You wanna ask why? That's what Faith is for. You wanna find out how far this goes and what can be done with it? That is the work of Science.

[@sergiogordon7877]

In software develop is true, we make the testing cases in base of that

[@damie9412]

Nice

[@kanwarjitsidhu8678]

I thought i was a couch potato as i do nothing 80% of time. now i know i was actually following Pareto Principle. what a relief

[@PhilippeDevienne-eh9tx]

As a business owner I know that 5% of my customers give me 95% of my headaches, so I send them to the comptition😂😂😂

[@thecuriouscat4102]

Are there any scenarios in studying where the pareto principle can be harmful?

[@VestinVestin]

If, say, at a seminar you figure that 80% the time someone is talking it's just someone from a narrow 20% group of seminar attendants and that group doesn't include you, you can feel demotivated and end up musing that the world is unfair, etc. You could, instead, just speak up and alter the dynamic. Basically, any time the Pareto principle is used to slot oneself or someone else as _inevitably_ being part of the 20% or the 80%, giving up on any more fine-grained analysis, it is used poorly (even when used correctly).

[@kjj26k]

The comments are full of people complain about how this has been used to make/justify poor business decisions and practices, perhaps there is something there.

[@lucasts2]

The fact that this channel has only 1.65m subscribers tells a lot about or current society. Your content should be in every school!

[@sprouts]

😍 you're the sweetest

[@finch2213]

I coached my kid’s soccer team a couple years ago, more or less 20% of the players scored 80% of the goals. Of course there were variables like if they played as attackers or defenders, but the 80/20 rule was applicable.

[@MindsetEvolutionZone]

Over time , the Principe

[@ArcanisUrriah]

Companies praise the ones doing the 20% to help the 80%, but complain about those who still have to do the 80% to get the 20% done taking too long.

[@nicolashenrich1103]

Is the warning of Pareto maybe worth another video? I've often heared of paretos principle but never of that warning and it sounds like it applies to many cases.

[@aktwi003]

How can I put this rule into my studies??

[@MrBilal1lion]

its negligible but alot of these numbers tend towards 21 percent, so if we do follow this rule, its better to trend towards more work rather than less..

[@StateFlow-ns4mg]

👏🏻👏🏻👏🏻

[@dalblack8712]

I’ve definitely seen this in the work place. 20% of the people do 80% of the work.

[@FelipeKana1]

That's why I only work 20% of time

[@brendamartinez6955]

thank you !

[@mangalsain]

I find it very useful as a thumb rule

[@ladymecha8718]

Always thought of this ratio to the difference between college an university, where colleges are 20% theoretical, and 80% practical, and vice versa for university.

[@ScimitarGaming]

I think you cannot apply a random theory which was conceived at a farm about the contribution of plant to a highly complex human society,

[@steveoh9025]

what are you referring to? The pareto principle is based on work done by statistician Vilfredo Pareto in the 19th century.. it's statistical, not random. what does a farm have to do with it?

[@kjj26k]

​@@steveoh9025 Bro is pretending that the example of Pareto noticing the 80/20 in his pea plants is the only thing that happened in this vid.

[@markomarkoni8632]

Besides being an economist, Pareto was also a sociologist. Sociology gave him an opportunity to theorize about man and society in a way different than most economists, who wrongfully view people as always-rationally-acting-creatures. On the other hand, Pareto stressed man's irrational behavior and his proclivity to interpret this type of behavior as rational. He taught that society is unavoidably divided into elites and masses and that all those Marxist dreams about egalitarian society are mere wishful thinking. When you think of it, it seems that Pareto actually taught that his principle applies to society - elites are the 20% of general population doing the 80% of the most creative work.

[@mebeingU2]

“60% of the time, it works every time!”

[@uberdonkey9721]

Put simply, don't be a perfection: focus on solving the large problems

[@HarshKumar-mx8gs]

20% of your supporters on patreon motivates you to make 80% of the content ??

[@sprouts]

Yes! Around 20% make around 80% of the total contributions we get :)

[@bAa-xj3ut]

👍👍👍👍👍👍👍👍👍👍

[@tom-kz9pb]

Pareto principle is particularly applauded and approved by the 80% who pat themselves on the back and see themselves as the 20%. Ouch, I banged my rule of thumb.

[@sprouts]

Thank god for the self-serving bias ✌️

[@igbokweodinaka4301]

As a student, studying only 20% of the syllabus can never give you 80% of the maximum grade

[@Draghoul03]

The pareto principle was never a principle. If you go back and read Pareto’s original text that started this whole mess it was originally an observation in 1906 in Italy that 80% of the land was owned by 20% of the people. Everything after that was simply assumptions and oversimplification of complex situations, stop spreading this hazardous meme. It is not a universal law

[@Junaid6646]

I don't think this principle works everywhere, everytime.

[@eamonnsiocain6454]

❤❤ 💡💡💡💡💡💡💡💡

[@JJ-hp6mb]

80/20 rule is a good starting point but if you want to perfect something, you need to focus on the details.

[@yodieindrawan5193]

To find 20% that matters need 80% of our energy

[@jackwood8307]

❤

[@sprouts]

🙂

[@gsom7]

Food and entertainment. In a week, eat 80% healthy food and 20% not (so) healthy and go out 20%. 20% that would be fast food, candies, chocolate,... and going out, having fun on Friday and Saturday afternoon/night.

[@bingeable3]

🎉🎉🎉🎉

[@joegagliardi3984]

I’m fairly certain that ANY two percentages, ending in -0, can be used to find patterns in everyday life with a little imagination.

[@AnnoyingMoose]

In any group of people 80% of the work is done by 20% of the people.

[@curtisbryce5096]

Isn't the Pareto Principle a square root rule?

[@elmahdi-yl7zi]

I sent an email to ask for permission to dub your content. It was answered the first time, and I am now impatiently waiting for the second answer.

[@sprouts]

Will get back to you!

[@johnmac8084]

So I'm right to ignore the paperwork then? 😅

[@enigma7385]

I do 80% of things in life with 20% my potential

[@duncanedwards8258]

Software engineering uses a modified version of this rule to explain why projects overrun: 20% of the work takes 80% of the time, and the other 80% of the work takes the other 80% of the time.

[@tomhchappell]

Pareto found the rule was different in different countries. In Eastern Europe it was a 90%/10% rule; 90% of the land was owned by 10% of the population. In the UK it was a 70%/30% rule; 70% of the land was owned by 30% of the people.

[@MrPrimoPR]

I have a rule : try to focus on 3 things you want to accomplish in one day , if you manage to be successful in two , your batting average is up there with Babe Ruth. Multiple your average by the days you work or do your thing.

[@senditall152]

I refuse to believe in the universal use of this rule. I can see that it may be true for some cases but it looks very to be useful in limited circumstances.

[@ariace3602]

Toyotama principal

[@steveoh9025]

do you mean TPS (Toyota Production System) or perhaps kaizen? Toyotama appears unrelated to this pareto principle

[@LivingAwake]

I have about 20% left over when I get paid. Sounds right.

[@corvus-coraxverdensis6919]

... taking two times an 80/20 approach you already will end up at 50/50

[@Justdoing185]

Whoever watched shuter island tell me the message of the movie!

[@gregrogers4376]

I like turnips! (Did that get me in the .01% category?)

[@MichaelSHartman]

I have not investigated this rule. Those that accomplish more are given more work while those that accomplish less are assigned less work.

[@StubbyPhillips]

But 95% of common sense belongs to 5% of people.

[@teacherfahadullah1066]

This does not mean you need to focus only on the 20% rather you have to go through the entire process. However many processes are structured in a way so this asymmetry between outcomes and inputs occurs. So get used to life being this way

[@alex.g7317]

This video is 20% based 80% skibidi

[@g.ramanan5190]

80|20 is reverse compounding

[@jasonadams6468]

It’s a natural law not unlike Elliott Wave Golden Mean. The true number is 19.47: 80.53 ratio We call it 20:80 rule The sloping side angle of a tetrahedron is 19.5 degrees. Occult mathematics is a bigger part of how the world works than we can truly understand.

[@ajaym6795]

Knowing that the 80/20 Rule exists doesn't make life or work easier. It's not easy to understand what falls within the 20%. Imagine being given some work, and you decided to spend time trying to apply this rule. While you're still figuring things out, your boss comes to see your progress. Good luck telling your boss that you were trying to use the 80/20 rule and haven't started working yet

[@JP_TaVeryMuch]

But you _have_ started working. Your premise seems to me to be eminently sensible. Start by extracting the top twenty percent most salient points and then edit, include or bin the rest, as appropriate.

[@AleksaCrnic]

yo

[@gr8vijay]

പരേറ്റോ.. പൊറോട്ട principle എന്ന് മതിയായിരുന്നു 😵‍💫😏

[@rickbeesme]

“I think”……..the other “80%” is a given, to complete the statement 🧐

[@masterchinese28]

80% of the comments are from bots, 20% from people

[@user-cj1ce6vy9r]

Do I carry the one?🥴

[@richardcarey169]

A rule to live by these days

[@roni_foxcoon]

From all the comments, we read only 20%. The next person will fill out the remaining 80% as a reply.

[@mastrogepetto7500]

Yeah. 80% of my salary goes to wife, 20% just for me... C'est la vie... 😢

[@Iruleyouforafee]

"20% of the hazards account for 80% of the injuries." So the other 80% of the hazards are competing for the remaining 20% of the injuries?

[@slexdereck4117]

Creo que como se describe el principio de Pareto en el video parece bastante estúpido. Por ejemplo que una compañía pueda focalizarse en el 20% de los peligros para eliminar el 80% de los accidentes suena muy difuso. De hecho aunque eliminaran el 20% de los peligros no hay ninguna razón lógica por la cual la proporción deje de mantenerse. No veo una ruta clara para poner ese principio en práctica. Yo lo entendía y lo sigo entendiendo como un patrón de la naturaleza, no algo que permitiera mejorar la toma de decisiones y los procesos.

[@hiranpeiris877]

im0