3 real-world examples of the Pareto Principle (2024)

If you know me and this blog, you know that I talk about the Pareto Principle a lot. That’s the concept developed by Vilfredo Pareto in 1906 when he determined that 80% of the land in Italy was owned by 20% of the people.He later found that 80% of the peas in his garden came from just 20% of his pea plants.

I bring this up so often because, if you are like most, 80% of your organization’s revenue comes from just 20% of your supporters. And, in many cases these days, that is becoming 90/10.

Here are some real world examples of the Pareto Principle you might find interesting:

• A 2002 report from Microsoft found that“80 percent of the errors and crashes in Windows and Office are caused by 20 percent of the entire pool of bugs detected.”
• 20% of the world’s population controls 82.7% of the world’s income
• 20% of patients use 80% of healthcare resources

Think about your life too. I bet you’ll recognize that:

• 20% of your co-workers create 80% of the problems in the office
• 20% of the fundraisers on staff are responsible for 80% of the organization’s revenue
• And, 20% of the carpet in your office gets used 80% of the time!

So, as this year comes to a close and you start planning for 2017, remember to consider the Pareto Principle. Thenreach out tousbecause that’s just about all we do!