AuthorAuthored by: Eric Grimstead
From 80/20 to 1% - The Power of Accumulative Advantage
In business we often hear about Pareto's Principle, or the 80/20 rule, where you can expect things like:
- 20% of your customers may account for 80% of your sales
- 20% of your products/services deliver 80% of your company's profits
Have you ever wondered about where that theory came from?
Well so did I! While researching the subject, I came across this fascinating article about Vilfredo Pareto (just sort of rolls off your tongue doesn't it?) - written by James Clear who writes about habits and human potential.
It's an interesting read that explores some fascinating examples in the wild...like how even in professional sports you can see a few franchises winning the majority of championships even in times where salary caps and free agency would seem to make it a more, um...level playing field.