The familiar old bell curve is the wrong curve to be paying attention to in business.
There’s a different curve that gives you a far more powerful way to look at the world. It’s the 80/20 Curve.
Perry Marshall illustrates this and shows why almost everything meaningful that you can measure in business is actually on the 80/20 Curve, not the old bell curve. (The extremes are where all the productivity actually comes from.)
Also: What the 80/20 Curve teaches us about entering new markets. Namely, the ease at which you can go get a new customer, how to get market share, and what happens once your share of the market exceeds 20%.
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5 Comments on “The 80/20 Curve: Where All the Real Productivity Comes From”
From now on, whenever I feel I need to argue with someone, I’ll pull out my phone, text them a link to your video, say “check your phone” and walk out.
Dead serious — this is THE solution to so many thinking errors.
Nice work Perry, very clear, thank you!
Nice explanation, thank you.
He needs to label the axes to make it clear what the graphs represent.
Hi,
I’ve been promoting 80/20 or Pareto as it is sometimes referred to (after the French mathematician) for the last 20yrs. It has been the single most prominent factor to success I have enjoyed in business. However, although it is a very simple principle many people struggle to understand it and prefer to stick to the false prophet of averages.