Definition
The Pareto Principle, also known as the 80/20 Rule, states that 80% of outcomes result from 20% of causes. This principle is widely used in project management, quality control, and risk management to identify high-impact areas that require the most attention.
For instance, in software development, 20% of the code may cause 80% of the bugs, or in business, 20% of customers may generate 80% of the revenue. By focusing on the critical 20%, project managers can optimize productivity and efficiency.
Advantages
✔ Helps Prioritize Critical Tasks – Focuses efforts on high-impact areas.
✔ Improves Decision-Making – Encourages efficient resource allocation.
✔ Reduces Wasted Effort – Minimizes time spent on low-value activities.
✔ Enhances Problem-Solving – Identifies key bottlenecks in workflows.
Disadvantages
✖ Not Always an Exact 80/20 Split – The ratio is a guideline, not a strict rule.
✖ Can Oversimplify Problems – Some issues require a more in-depth analysis.
✖ May Ignore Smaller, Yet Important Tasks – Some low-impact items are still necessary.
