80 20 Rule - 20 percent of variables causes 80 percent of effects in a large system

A high percentage of effects in any large system are caused by a low percentage of variables.

Why it works?

1. Inequity in Distribution: Many systems are not perfectly balanced.
2. Network Effects and Feedback Loops: successful products attract more customers
3. Resource Allocation: In many scenarios, resources are not evenly distributed. Some activities or inputs are simply more efficient or effective than others, leading to a situation where a small proportion of these inputs generate the majority of the results.
4. Statistical Distribution: The Pareto Principle often arises in systems that follow a Power-law distribution
5. Focus and Optimisation: People often focus on what works best, leading to a concentration of efforts on the most productive activities, which naturally leads to a disproportionate distribution of results.

• Everything in life moves though cycle
• Judo move - maximum result, minimum effort