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The 80/20 principle applies widely 31 Oct 2014

In 1906 Pareto, an Italian, noticed 80% of the wealth in his country was in the hands of 20% of the people. Others later noted the 80:20 rule applied widely.

Thus 20% of something is always responsible for 80% of the results. Twenty percent of your stock will take up 80% of your shelf space or storage; 20% of your suppliers will provide 80% of your stock; 20% of your staff will cause 80% of your headaches.

Knowing this principle can help your business. If you know the 80% part, look for the vital 20% creating this 80%. Work on the 20%.

As a manager, put 80% of your time into the important 20% of your work.

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