CDS Blog

Pareto's Principle - The 80-20 Rule

Posted by admin on Aug 9, 2018 5:04:16 PM

Vilfredo Pareto (1848-1923) was an Italian economist who, in 1906, observed that twenty percent of the Italian people owned eighty percent of their country's accumulated wealth. Over time and through application in a variety of environments, this analytic has come to be called Pareto's Principle, the 80-20 Rule, and the "Vital Few and Trivial Many Rule." Called by whatever name, this mix of 80%-20% reminds us that the relationship between input and output is not balanced. In a management context, this rule of thumb is a useful heuristic that applies when there is a question of effectiveness versus diminishing returns on effort, expense, or time.

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Topics: Campaign Feasibility and Planning Studies, 80/20 Rule, Capital Campaigns, Fundraising Principles, organizational development, Organizational management

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