Administración de Empresas Comerciales

Facultad de Administración y Economía

Universidad Colegio Mayor de Cundinamarca
Laura Alejandra Patiño Cedano, Presupuestos, Grupo B

Pareto's Law, also known as the 80/20 principle, is a widely recognized concept in
economic theory and business management. Proposed by the Italian economist
Vilfredo Pareto at the end of the 19th century, this law postulates that, in many
contexts, approximately 80% of the results come from 20% of the causes. This
principle originated from Pareto's observations about the unequal distribution of
wealth in society, where he noted that approximately 80% of the land was in the
hands of 20% of the population.

The application of Pareto's Law extends to a wide range of disciplines and situations.
In business, for example, it has been repeatedly observed that 80% of a company's
revenue is usually derived from the 20% of its most important customers. Likewise,
80% of the problems in an organization are usually related to 20% of the root causes.
This unequal relationship between effort and outcome provides valuable insight for
strategic decision making and resource allocation.

On a more personal level, Pareto's Law can also be applied effectively. As we

examine our daily activities, we are likely to discover that 20% of our actions
generate 80% of our most significant results. Identifying these key activities allows
us to focus our energy and time on those that have a substantial impact on achieving
our personal and professional goals.

It is important to note that while Pareto's Law offers a generally valid rule, it is not a
strict and universal rule. Specific percentages may vary depending on the context
and particular situation. Furthermore, the effective application of this principle
requires careful analysis and a deep understanding of the factors at play.
Administración de Empresas Comerciales
Facultad de Administración y Economía
Universidad Colegio Mayor de Cundinamarca
Laura Alejandra Patiño Cedano, Presupuestos, Grupo B

In summary, Pareto's Law is a powerful principle that offers valuable insight into the
unequal distribution of outcomes in various areas of life. By recognizing the
importance of a select set of factors in generating the most outcomes, we can make
more informed and effective decisions to achieve our goals and maximize our
productivity at both the individual and organizational levels.

Referencias
Emprendedores, L. p. (s.f.). El principio del 80/20.