The 80/20 Rule

How to Leverage The Parento Principle to be more effective in any role

By: Danielle Giannone & Danny Tyrrell

In this article, we will explain what the 80/20 rule is and how to leverage it to be more effective in any role.

The 80/20 rule, or the Parento Principle, was discovered by Economist Vilfredo Pareto in the late 19th century when he noticed that 20% of Italy's population owned 80% of its land. This initial discovery highlighted a common pattern of imbalance that could be observed in many areas of life and today it continues to serve as one of the most important tools you can use to maximize your effectiveness in any role. 

In simple terms, this principle states that 20% of your efforts yield 80% of your results. Yes, that means 80% of your activities have minimal effect on what you are trying to achieve. Understanding how this plays out in your daily life can be eye-opening, especially for those who feel overwhelmed by their workload or the multitude of tasks they juggle everyday. If you're skeptical, I recommend taking a closer look; you might be surprised by what you discover.

Here are some examples of how the 80/20 rule may show up in your life:

• Look at the clothes in your closet, do you wear 20% of them 80% of the time? 

• If you work in development, do 20% of your donors account for 80% of the total funds raised? 

• In the for-profit realm, do 20% of your products account for 80% of your earnings? 

• In your workplace, do 20% of your employees account for 80% of the results? 

I am willing to bet that the answer to these questions is a resounding yes. In fact, in some cases, it may be even closer to 90%! The implications of this realization can be game-changing, whether it is to spend more time nurturing your top donors or less of your marketing budget on low-performing products, the 80/20 rule helps us reconsider how we allocate our time and resources.

So what does this all mean? 

It means that if you are willing to take a small amount of time to identify your ‘20%’ you can be far more productive in a fraction of the time. 

What's you 20%

Try the following exercise to identify your 20%. List the things that you do on a daily, weekly, and monthly basis and sort them into 3 columns: 

MY 20%	DELEGATE	NO VALUE
What are the most important actions I take to achieve my goals? Consider which tasks truly contribute to your success.	What are the important tasks I undertake that do not necessarily require my direct involvement? This could include administrative duties or routine checks.	What actions do I take regularly that have little to no impact on my overall goals?
Do these actions make the best use of my skills? Evaluate whether you are utilizing your talents effectively.	What tasks do I hold on to because I like to do them or lack trust in others, when in reality I should assign them to someone else?	Is this action a waste of my valuable time? Be honest with yourself and If the answer is yes, then STOP DOING THEM!

The Top 3 Keys to being more productive in a fraction of the time are:

1. Identify Your 20%: Get crystal clear on what your top goals are and the most important actions you need to take to achieve them.  

   
   

2. Delegate Effectively: Better utilize your skills and help your team members grow by assigning them the important tasks you do not need to be directly involved in.

   
   

3. Eliminate low to no-value tasks: Free up time and energy for more impactful actions.