The 80 - 20 Rule

An Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country somewhere around the 1890’s. His research showed 20% of the people had 80% of the wealth  Many others observed  the same in their own areas of expertise.  A Quality Management pioneer, Dr. Joseph Juran, formulated a universal principle he called the "vital few and trivial many”. As a result, Dr. Juran's observation of the "vital few and trivial many", the principle that 20 percent of something is always responsible for 80 percent of the results, became known as Pareto's Principle or the 80/20 Rule.

What It MeansThe 80/20 Rule means that in anything 20%  of the activity is important but most, 80% is not. In Project Management we know that 20% of the work will consume 80 percent of time and resources. You can apply the 80/20 Rule to almost anything. For example, about 80% of sales will come from 20% of the sales force, and 20% of your activities will move you closer to your goals

How It Can Help YouThe value of the Pareto Principle is that it reminds us to focus on the 20 percent. If something in the schedule has to slip, make sure it's not part of that 20 percent. Don't just "work smart", work smart on the right things. Focus 80 percent of your time and energy on the 20% of you work that is really important

Putting 80/20 To UseHere is an idea on how to arrange goals using the 80/20 method.

First get a pencil and paper out. Draw a vertical line down the center of the paper followed by a horizontal line about an inch from the top. This will split the paper into 2 columns with a header. Label the left column Must do and the right Shouldn't do.
Next, develop a list of the activities that must be done in order to accomplish your goal. Brainstorm and write down anything that springs to mind in the left column. Don’t evaluate just write. These need to be action steps that will get you closer to your goal.

On the right side make a list of activities that will inhibit goal achievement. It is crucial to understand activities that are obstructions to the goal. When you write down specific activities you believe shouldn't be done, you clarify what must be done in order to move ahead. Again, no evaluation, just write the ideas down.

Now count the number of items in each column and write it down at the bottom of the column. Each list must then be numbered by importance. Again, just how important is the action in goal acquisition. Now you are ready to apply the 20% rule.

If you have 13 items listed on your must do list, then you can pick three. (always round to the nearest whole number).  Do the same with your Shouldn’t do list. Now make a fresh list with only the 20% items on it and discard the first list.

Now you've a list of items to do and to avoid that are of primary importance, and represent your 20%. This is a good visual to keep you on course with your goals, and focused on the 20% that truly matters You will be astonished by how quickly you can move toward your goal when you isolate and focus on the 20% that counts, and ignore the 80% that doesn't matter. When you have achieved completion of one or more of the tasks in the left column, then you can recycle and do again for the next 20%