The Pareto Principle, also known as the “80:20 rule,” asserts that 80% of outcomes stem from 20% of causes. Named after the Italian polymath Vilfredo Pareto, the principle is supported by empirical observation showing that this 80:20 distribution applies to a wide variety of situations, including natural phenomena and human activities.
This principle has symmetrical implications for both desired and undesired situations we encounter in everyday life, particularly in the workplace. One desired case is when, in a team of ten, two people cause 80% of the success. One undesired case is when two people cause 80% of the problems. These examples illustrate how crucial it is to identify that 20%.
Supervisors and managers often fail to address that critical 20% appropriately, whether it means supporting the top performers or resolving the source of most problems. A perfect storm occurs when the symmetry manifests itself in both cases simultaneously, yielding dreadful outcomes where A players are ignored and bad apples are tolerated.