The Pareto Principle, also known as the 80/20 rule, suggests that roughly 80% of effects come from 20% of causes. This concept, named after the Italian economist Vilfredo Pareto, highlights how a small number of inputs can lead to the majority of results in various fields, such as business, economics, and time management. For example, in a business context, it may be observed that 80% of sales come from just 20% of customers. Understanding this principle can help organizations focus their efforts on the most impactful areas, leading to more efficient resource allocation and improved outcomes.