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What is the 80/20 rule? The 80/20 rule, also known as the Pareto principle, simply means that roughly 80 percent of the effects of anything you might be doing come from 20 percent of the causes. For example, 80 percent of your sales are likely generated by about 20 percent of the items you carry or services you offer. 20 percent of your employees shoulder 80 percent of the responsibility and work. 20 percent of your employees cause 80 percent of the problems. 20 percent of your employees take up 80 percent of your personnel management time.
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