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, Jownside of Pareto Prinicple, James Clear on Slightly better

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