The 80:20 rule was coined by Vilfredo Pareto in the early 20th century and is referred to as the Pareto Principle. Basically, it asserts that 80% of outcomes result from 20% of all causes for a given event. In business, a goal of the 80:20 rule is to recognise inputs that are deemed the most productive and focus on these as a priority. This means identifying factors that are critical to a business's success. Once identified, these should then be given priority focus to deliver far more far reaching and rewarding outcomes. The Michael Same Consultancy applies the 80:20 rule as the starting point for engineering great outcomes.
While the 80:20 story is more often used in a business sense, it can also apply to any field including cashflow management, personal finance, spending habits analysis, and even succession planning.