The statement expresses the principle commonly known as the 80/20 rule: in many situations, a relatively small proportion of causes accounts for a comparatively large proportion of results. The figures are approximate rather than a fixed mathematical law; the central idea is that contributions to an outcome are often distributed unevenly.

The principle is widely used in management and analysis to identify the “vital few” factors that account for much of a problem or result. A business might find, for example, that a small group of products generates most revenue or that a limited number of causes produces most defects.

The practical implication is one of prioritisation. Where resources are limited, identifying disproportionately influential factors can help direct attention towards areas where intervention may have the greatest effect. The actual proportions, however, need not be precisely 80 and 20.