The 80/20 Principle

The deceptively simple yet revolutionary idea that just 20% of the effort can deliver 80% of the results was identified by Pareto, an Italian economist, as long ago as 1897.

So for instance it is more than likely that in any large organisation, 20% of customers or products will generate 80% of the profits. In your home, 20% of your carpets will tend to get 80% of the wear. On the streets, approximately 20% of criminals cause 80% of the crime. On the roads 20% of motorists cause 80% of accidents. The Pareto principle is remarkably consistent across contexts and time.

What does this mean for you at work?

Taken literally, Koch says, it means that 80% of what you achieve in your job comes from 20% of the time spent. Take a moment to reflect on that - it may provide some very useful insights!

Some key tenets of the 80/20 principle

1. The doctrine of the vital few and the trivial many - there are only a few things that ever produce important results.
2. Most efforts do not produce their intended results.
3. What you see is generally not what you get - there are subterranean forces at work.
4. It is usually too complicated and too time-consuming to work out what is really going on - it is also unnecessary. All you need to know is whether something is working or not and change the mix until it is, then keep it constant until it stops working.
5. Most good events happen because of a small number of highly productive forces. Most bad things happen because of a small minority of highly destructive forces.
6. Most activity, both collective and individual, is unproductive. It will not materially contribute to desired results.

Helpful questions to ask using the 80/20 principle

• What uncharted problems and opportunities that could potentially have tremendous consequences are mounting up that I/we are not noticing?
• What am I/are we doing that is being greatly appreciated by customers, even when it wasn't intended as a particular benefit?
• Is there something going badly astray, where we think we know why but where we may be totally wrong?
• Since something important is always happening below the surface, without anyone noticing it, what might it be this time?

"Perfection is not when there's no more to add, but when there's no more to take away."