• The 80-20 rule states that 80% of the results come from 20% of the causes.
  • The 80-20 rule prioritizes the 20% of factors that will give the best results.
  • The principle of the 80-20 rule is to identify the organization’s best assets and use them effectively to create maximum value.
  • This rule is a prescription, not a rigid mathematical law.
  • People sometimes mistakenly conclude that if 20% of factors should be prioritized, then the other 80% can be ignored.