The Weirdness Of The Pareto Principle

Have you heard about the Pareto principle? It is also known as the 80/20 rule. The Pareto principle states that 80% of your profits come from 20% of your actions. There are some analysis of the principle that concluded that it actually means 80% of your income comes from 20% of your customers.

My beef with the Pareto principle is that I believe that it is too general and scientifically borders on the impossible. By sheer definition, it means that you should focus on the 20% of your activities that brings 80% of your revenue. Right?

Now here’s the weird part. If you eliminate the 80% of activities that only bring in 20% of your revenue, you’d essentially be left with 100% of income that comes from 100% of your work. This means that applying the Pareto principle effectively negates the principle itself!

So does this mean that the Pareto principle is a paradox of itself? Or am I just reading too much into it?

3 responses to “The Weirdness Of The Pareto Principle”.

  1. kucau Says:

    In practice theory is CRAP !

  2. Zul Says:

    I guess that’s why the founder did not name the principle by his own name, so that he would not need to take the blame, when people like Azmeen questioning…. How clever 🙂

  3. Anas Alam Faizli Says:

    Azmeen are going to create Azmeen principle over Pareto principle if he continues to read it … HAHA