80/20 Rule: The Pareto Principle

80/20 Rule: The Pareto Principle

The 80/20 rule states that about 20% of causes produce about 80% of outcomes.

Accumulative advantage is what begins as a small advantage gets bigger over time. Situations in which small differences in performance lead to outsized rewards are known as Winner-Take-All Effects.

Winner-Take-All Effects in individual competitions can lead to Winner-Take-Most Effects in the larger game of life.

The 1 Percent Rule states that over time the majority of the rewards in a given field will accumulate to the people, teams, and organizations that maintain a 1 percent advantage over the alternatives. You don’t need to be twice as good to get twice the results. You just need to be slightly better.

When the 80/20 Rule Fails

This is the downside of the 80/20 Rule: A new path will never look like the most effective option in the beginning.


James Clear on Pareto Prinicple
James Clear on downside of Pareto Prinicple
James Clear on Slightly better


Written By

Bino Kochumol Varghese

Software Engineer⚡ Blogger 🦄 Reader 📚 Wanderlust 🦋 Green panther🌱