Bill Canady explains the 80/20 principle, which started with Italian economist Vilfredo Pareto noticing that 80% of his garden's pea yield came from just 20% of the pods. The rule applies broadly: in most systems, 80% of results come from 20% of causes. Learn how to find that critical 20% in your business data and focus resources there.
80/20 is nothing more than mathematically looking at your data, right? If you go back in history, it was originally, the concept came from Pareto, who among many things was an Italian landowner who liked studying pea pods. And what he discovered was out of his garden, 80% of the yield came from 20% of the pea pods. And then he expanded that to look at landowners and people and on and on and on. It's like a law of nature. 80% of the yield comes from just 20% of what you've had. We're able to take that same knowledge and doing just basic math, understand where our yield come from. What is our 80s? What are the, the 20% of things that we have, uh, that really yield all the results we get? By using that process, we're able to decide and determine this is where the action's at. This is where the opportunity is. And it shows us where it's not, and that's where we take the resources from. So 80/20 for us is just a way to segment and simplify our business and focus on the critical few.
