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The 80/20 rule (Pareto)

A small share of causes drives most of the result.

Often around 20% of customers, products or problems account for about 80% of revenue, cost or complaints.

Finding that 20% tells you where to focus first.

🧮 Example

A distributor finds 15% of its SKUs generate 78% of profit → cut or reprice the long tail.

🎯 Interview tip

Prioritise out loud: “I'd start with the top 3 customers, who are 60% of revenue.”

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