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
www.sciencedirect.com/science...
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
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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

Опубликовано:

30 июн 2024

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Комментарии : 180

@jjones1102 2 месяца назад

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

@Study-tf9mk 2 месяца назад

😂😂

@30pranaypawar17 2 месяца назад

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

@30pranaypawar17 2 месяца назад

Without compensation...

@jjones1102 2 месяца назад

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

@DeepThinkersClub Месяц назад

I remember when we were allowed to comment.

@lovwanshichetan 2 месяца назад

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 2 месяца назад

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 Месяц назад

@@kjj26kThat’s is how politics work.

@fabolvaskarika7940 Месяц назад

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

@DefaultDerrick 2 месяца назад

I love that its short and sweet without losing substance.

@sprouts Месяц назад

Keep learning:)

@FranksPianoscape Месяц назад

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 Месяц назад

😂

@passdasalt Месяц назад

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

@Typical.Anomaly Месяц назад

I checked your math. This comment is legit.

@sudhanshunaik 2 месяца назад

Most underrated content on RU-vid

@user-ye1go6hw9r 2 месяца назад

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

@themadtrax6507 2 месяца назад

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

@What-is-a-handle-is-it-a-tag Месяц назад

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

@banshwa 2 месяца назад

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 2 месяца назад

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

@jethrowbowdeen Месяц назад

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 Месяц назад

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 2 месяца назад

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 29 дней назад

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.

@Feynman_Fries Месяц назад

Whoever did the sketches deserves a thumbs up too.

@sprouts Месяц назад

Pascal did.

@Feynman_Fries Месяц назад

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

@rashadbinrashed8784 2 месяца назад

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

@drrtfm 2 месяца назад

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.).

@Emanon... 2 месяца назад

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

@sportswriter Месяц назад

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

@livewire1199 2 месяца назад

Great channel

@lucasts2 2 месяца назад

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

@kjj26k 2 месяца назад

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 Месяц назад

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

@at3649 2 месяца назад

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 2 месяца назад

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

@kjj26k 2 месяца назад

And 80% of your woe.

@andrel8243 2 месяца назад

I use this principle in 20 percent of my decisions

@What-is-a-handle-is-it-a-tag Месяц назад

😂

@user-ve2pr3ci6e 8 дней назад

LEARNING AND ENTERTAINING AMAZING FACTS

@murrayjennex1377 Месяц назад

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

@steelhead49 2 месяца назад

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 2 месяца назад

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.

@rodraska Месяц назад

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

@knw-seeker6836 Месяц назад

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

@patricklee8088 Месяц назад

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 Месяц назад

@@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 Месяц назад

@@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.

@finch2213 25 дней назад

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.

@user-lh5os7hz4q 2 месяца назад

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

@liam8370 2 месяца назад

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 2 месяца назад

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 Месяц назад

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

@EMSMDSolutions Месяц назад

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

@StubbyPhillips 2 месяца назад

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

@kanwarjitsidhu8678 Месяц назад

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

@I4improvement 2 месяца назад

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

@MrBilal1lion 2 месяца назад

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..

@MokshDeva Месяц назад

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

@lucasts2 2 месяца назад

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 Месяц назад

😍 you're the sweetest

@thecuriouscat4102 2 месяца назад

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

@VestinVestin 2 месяца назад

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 2 месяца назад

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.

@VivekSingh_ias Месяц назад

Liked this format of CRITICALLY ANALYSING a theory…

@solidsnakeXY810 Месяц назад

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

@dalblack8712 Месяц назад

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

@FelipeKana1 2 месяца назад

That's why I only work 20% of time

@ArcanisUrriah 2 месяца назад

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.

@Junaid6646 Месяц назад

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

@uberdonkey9721 28 дней назад

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

@joegagliardi3984 Месяц назад

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

@stubby7934 Месяц назад

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."

@JJ-hp6mb 7 дней назад

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

@nicolashenrich1103 Месяц назад

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.

@kidahard1574 Месяц назад

Keep winning

@yodieindrawan5193 Месяц назад

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

@ScimitarGaming 2 месяца назад

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 2 месяца назад

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 2 месяца назад

@@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 27 дней назад

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.

@aktwi003 Месяц назад

How can I put this rule into my studies??

@damie9412 Месяц назад

Nice

@tom-kz9pb Месяц назад

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 Месяц назад

Thank god for the self-serving bias ✌️

@MrPrimoPR Месяц назад

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.

@StateFlow-ns4mg 2 месяца назад

👏🏻👏🏻👏🏻

@MindsetEvolutionZone Месяц назад

Over time , the Principe

@AnnoyingMoose Месяц назад

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

@mangalsain Месяц назад

I find it very useful as a thumb rule

@tomhchappell Месяц назад

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.

@duncanedwards8258 13 дней назад

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.

@PhilippeDevienne-eh9tx Месяц назад

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

@elmahdi-yl7zi 2 месяца назад

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 Месяц назад

Will get back to you!

@gsom7 Месяц назад

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.

@igbokweodinaka4301 Месяц назад

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

@mebeingU2 28 дней назад

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

@HarshKumar-mx8gs 2 месяца назад

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

@sprouts 2 месяца назад

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

@Justdoing185 2 месяца назад

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

@bAa-xj3ut 2 месяца назад

👍👍👍👍👍👍👍👍👍👍

@senditall152 2 месяца назад

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.

@corvus-coraxverdensis6919 2 месяца назад

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

@MichaelSHartman Месяц назад

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

@eamonnsiocain6454 2 месяца назад

❤❤ 💡💡💡💡💡💡💡💡

@bingeable3 2 месяца назад

🎉🎉🎉🎉

@curtisbryce5096 2 месяца назад

Isn't the Pareto Principle a square root rule?

@enigma7385 29 дней назад

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

@teacherfahadullah1066 Месяц назад

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

@jackwood8307 Месяц назад

❤

@sprouts Месяц назад

🙂

@LivingAwake Месяц назад

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

@johnmac8084 Месяц назад

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

@gregrogers4376 Месяц назад

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

@ariace3602 2 месяца назад

Toyotama principal

@steveoh9025 2 месяца назад

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

@jasonadams6468 Месяц назад

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.

@brendamartinez6955 Месяц назад

thank you !

@Draghoul03 2 месяца назад

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

@ajaym6795 Месяц назад

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 Месяц назад

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.

@rickbeesme 2 месяца назад

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

@g.ramanan5190 Месяц назад

80|20 is reverse compounding

@StubbyPhillips 2 месяца назад

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

@roni_foxcoon Месяц назад

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

@alex.g7317 28 дней назад

This video is 20% based 80% skibidi

@rphb5870 Месяц назад

it is not the 80/20 rule it is more depressive, it is the square root rule

@AleksaCrnic 2 месяца назад

@mastrogepetto7500 Месяц назад

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

@papagolf1 Месяц назад

Perhaps, behaviours that men are thought to usually exhibit, really are exhibited by %80 of men and %20 of women. It would go the other way, too.

@youpeopl_music3220 10 дней назад

Ngl, this isn't the 80/20 rule I thought they were talking about 😅🤷🏾‍♂️

@Gartensalat Месяц назад

Watch only the first 33.2 seconds of the video to get the most out of it.

@JP_TaVeryMuch Месяц назад

Thank you for this inspiration. I pretended that I was watching for the first time with the knowledge of your time stamp in my pocket. Lo and behold the topic of the narration at 20% / 33secs into the video is the very root of the principle. Namely how Sgr. Pareto started to formulate his rule upon observing his Peas.

@user-cj1ce6vy9r 5 дней назад

Do I carry the one?🥴

@richardcarey169 Месяц назад

A rule to live by these days

@masterchinese28 Месяц назад

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

@gt-gu7rb Месяц назад

Well it made sense up until the last point when presented with evidence to the contrary such person would simply make up another rule that lines up with said sentiments. That was downright cynical.