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The 8020 rule is an example of a network power law. Network power laws rule.
Everyone is familiar with the 80/20. The 8020 rule is an example of a network power law. Network power laws rule. Just as Network scale rules (tree and human heart, experience curves etc.).
“The common thread between chaos theory and the 80/20 Principle is the issue of balance—or, more precisely, imbalance. Both chaos theory and the 80/20 Principle assert (with a great deal of empirical backing) that the universe is unbalanced. They both say that the world is not linear; cause and effect are rarely linked in an equal way. Both also place great store by self-organization: some forces are always more forceful than others and will try to grab more than their fair share of resources. Chaos theory helps to explain why and how this imbalance happens by tracing a number of developments over time.
The Universe is not a straight line
The 80/20 Principle, like chaos theory, is based around the idea of nonlinearity. A great deal of what happens is unimportant and can be disregarded. Yet there are always a few forces that have an influence way beyond their numbers. These are the forces that must be identified and watched. If they are forces for good, we should multiply them. If they are forces we don’t like, we need to think very carefully about how to neutralize them. The 80/20 Principle supplies a very powerful empirical test of nonlinearity in any system: we can ask, do 20 percent of causes lead to 80 percent of results? Is 80 percent of any phenomenon associated with only 20 percent of a related phenomenon? This is a useful method to flush out nonlinearity, but it is even more useful because it directs us to identifying the unusually powerful forces at work
One very powerful force is Birth Order. It is the reason Kim Kardashian has all the links on Instagram – she launched as the platform launched. In business, this has long been recognized as the so-called First Mover Advantage (in short your competitors are chasing you down points the the experience curve and you should always have a better cost position )
Feedback loops distort and disturb balance
“The 80/20 Principle is also consistent with, and can be explained by, reference to the feedback loops identified by chaos theory, whereby small initial influences can become greatly multiplied and produce highly unexpected results, which nevertheless can be explained in retrospect. In the absence of feedback loops, the natural distribution of phenomena would be 50/50—inputs of a given frequency would lead to commensurate results. It is only because of positive and negative feedback loops that causes do not have equal results. Yet it also seems to be true that powerful positive feedback loops only affect a smal minority of the inputs. This helps to explain why those small minority of inputs can exert so much influencel” – Richard Koch – the 80/20 principle.