Pareto principle

April 19th, 2017 Posted by Agile, Blog, Tips 0 thoughts on “Pareto principle”

The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.

  • 80% of problems can be attributed to 20% of causes.
  • 80% of a company’s profits come from 20% of its customers
  • 80% of a company’s complaints come from 20% of its customers
  • 80% of a company’s profits come from 20% of the time its staff spent
  • 80% of a company’s revenue comes from 20% of its products

 

But also:

  • 80% of the product value come from the 20% of its features.

 

Think about it when you define your Minimal Viable Product (MVP).

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