How does the Pareto 80/20 rule apply in business? How can you identify the 20% of inputs and activities that make the most difference to your business’s bottom line? In any company, you can predict that 80% of profits are generated by 20% of inputs in each domain, including customers, products, employees, and departments. According to Richard Koch, there are two ways you can identify the top-performing 20% of those inputs: conducting an 80/20 Analysis and applying 80/20 Reasoning. Let’s briefly review each method.
How to Perform an 80/20 Analysis of Your Business










