Leverage Tool:
The 80/20 Principle
Used for
- Do the 20% that give 80% of results, output or success
- Use 80/20 analysis to find the 20%
- Use 80/20 thinking to quickly guess and test what the 20% is
Strength
4
/ 5
Versatility
5
/ 5
Difficulty
1
/ 5
What?
80% of results often come from 20% of efforts or causes
Why?
Focusing on those 20% helps allocate resources where they are needed
How?
Analyse which activities produce the majority of results and focus on those
“Things that matter most Must never be at the mercy of things that matter least.”
Richard Koch
–
Bestselling author and billionaire investor
What it is?
The 80/20 Principle, also known as the Pareto Principle, states that 80% of results often come from just 20% of efforts or causes. In many areas of life, this means that a minority of inputs lead to the majority of outputs, whether in business, personal productivity, or social dynamics.
Why use it?
This principle is useful because it helps individuals and organizations focus their time, energy, and resources where they will be most effective. By identifying which 20% of activities or inputs yield 80% of the results, you can achieve more with less effort, increase efficiency, and improve resource allocation.
How to use it?
- Identify: Analyze your activities or business processes to determine which ones are contributing the most to your results. This might involve tracking time spent versus outcomes achieved.
- Focus: Concentrate your efforts on those high-impact activities. This could mean prioritizing key tasks, clients, or products that generate the majority of your income or success.
- Eliminate or Delegate: Reduce or eliminate the low-impact activities. If possible, delegate these to others or automate them, allowing you to devote more time to high-return tasks. Regularly reassess to ensure you're still aligned with the principle as circumstances change.