The law is named after the Italian economist vilfredo pareto. 1906, Pareto put forward a famous research conclusion on the distribution of social wealth in Italy: 20% of the population holds 80% of social wealth.
This conclusion is applicable to the distribution of social wealth in most countries. Therefore, this rule is also called the 80/20 rule.
Dr. Zhu Lan adopted this idea in management science, thinking that in any case, the main result of things only depends on a few factors.
This idea is often applied to different fields, and it is proved to be correct in most cases through a large number of experiments. Therefore, this rule is very helpful for guiding management activities.
1897, the Italian economist Pareto accidentally noticed the wealth and income pattern of the British in the19th century. In the survey and sampling, it was found that most of the wealth flowed to a few people.
At the same time, he also found from the early data that in other countries, this subtle relationship appeared again and again, and it showed a stable relationship in mathematics. Therefore, Pareto found from a large number of specific facts that 20% of the people in society occupy 80% of the social wealth, that is, the distribution of wealth in the population is unbalanced.