By Dan Erdle

Introduction

The Pareto Principle, known more popularly as the 80/20 rule, states that 80% of results are explained by only 20% of the inputs. Only a small amount of our time, energy, money, and decisions are responsible for a large amount of our outcomes. The Pareto principle also means that we waste much of our time on things that don’t really matter. In trying to explain the world around us we easily become distracted by noise. Instead, in trying to understand the world, we should focus our attention on figuring out the small number of things that lead to disproportionate payoffs.

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