The 80/20 Rule - Pareto Principle - Explained
Definition: What is the 80/20 Principle?
The 80/20 principle states that 80% or more of the value of anything is contained in the 20% or less of its content.
The 80/20 rule expanded its meaning to suggest the following is also true.
- 80% or more of the crime in any town, is committed by 20% or less of the population.
- 80% or more of the traffic, is on 20% or less of the road network.
- 80% or more of the questions, come from 20% or less of the class.
- 80% or more of the value of a newspaper, is contained in 20% or less of the content, etc
The 80/20 rule means that 80% or more of the value of something is contained in only 20% of its content.
How to use the Pareto 80/20 principle in your work
You can use the 80/20 rule at work by understanding that 80% of your value to your organisation is contained in only 20% (or less) of what you do.
Putting the same point in another way, 80% of what you do in a weeks' worth of effort, contributes very little value to your organisation.
A much smaller portion of what you do in a week is where you earn your salary.
The assumption is that there are usually between five and nine activities that will account for 80% of your value to your organisation.
If you do these activities well, then this is what you are paid for. All the other things you do, sitting in low value meetings, reading trivial emails, arguing with the manager, complaining about the system; none of this adds any value and could theoretically be dispensed with.
Let us assume that there are about six tasks that constitute the Pareto 20%. Only six tasks that, if you did first and did well, would mean that you could go home early; safe in the knowledge that all the things that your job description demands, has been done, and you have earned your wages.
What would those tasks be? For instance, my list is as follows. It contains only four items.
- Website search engine optimisation work.
- Sales calls.
- Preparation for training.
- Delivery of training.
That is my Pareto list. If I do these things well, then I am earning my wages. Every task that takes me off these things is relatively a waste of time; or even counter-productive.
Does the Pareto Principle apply to everything?
Yes!
What list of items, constitutes your list of Pareto 20% activities? What are the six activities that, if you did first and well, would mean that you could go home safe in the knowledge that you have done all the most valuable things and you have earned your wages?
Once you know your Pareto 20% list, then your mission is to spend as much time as you can on those items and perfect them.
Keep away from doing things that take you off your Pareto 20% list. These other tasks are relatively trivial, and they are not what you are paid to do.
Your mission, should you decide to accept it is to......
Take a card and make a list of six Pareto 20% items. Then stick it to your PC and spend your time primarily doing the things that are on that list.
Definition: 80/20 rule (Pareto principle)
In business, the 80/20 rule is the idea that a small set of causes, often around twenty percent, creates most of the results, about eighty percent. The same pattern appears in sales, time use and many other fields. By spotting this split, workers can target the few tasks that really matter and drop low-value work.
Show CG4D Definition
- It links about eighty percent of results to roughly twenty percent of causes.
- It shows the same pattern in sales, crime, traffic, time use and other fields.
- It helps workers and leaders pick the few tasks that matter most.
- It only applies when one small group clearly drives most results; if success is spread evenly, the rule fails.
Article Summary
The 80/20 rule proves that a few key actions drive most gains; write down your vital 20 percent, tackle them first, and your output will soar while low-value noise falls away.
Frequently Asked Questions
Here are some questions that frequently get asked about this topic during our training sessions.
How does the 80/20 rule help me decide what to do first at work?
What are some everyday examples of the Pareto principle?
How can I find my own 20 percent activities?
Why should I reduce time on low-value tasks?
Does the 80/20 split always equal exactly 80 and 20?
How many high-value tasks should I list on my card?
Can the Pareto principle improve team productivity?
Thought of something that's not been answered? Ask Us Today!
Did You Know: Key Statistics
The 2024 Asana Work Index shows that knowledge workers spend 58% of the workday on low-value tasks such as email and status meetings, leaving only 42% for high-impact work. Salesforce’s 2024 State of Sales report finds that the top 20% of sales representatives generate 78% of total revenue across surveyed firms.About the Author: Chris Farmer
Chris Farmer is the founder of the Corporate Coach Group and has many years' experience in training leaders and managers, in both the public and private sectors, to achieve their organisational goals, especially during tough economic times. He is also well aware of the disciplines and problems associated with running a business.
Over the years, Chris has designed and delivered thousands of training programmes and has coached and motivated many management teams, groups and individuals. His training programmes are both structured and clear, designed to help delegates organise their thinking and, wherever necessary, to improve their techniques and skills.
Blogs by Email
Do you want to receive an email whenever we post a new blog? The blogs contain article 5-10 minutes long - ideal for reading during your coffee break!
Further Reading in Time Management
-
Time Management Skills: Planning Ahead
Learn how planning ahead sharpens time management, sets clear goals and guides action with seven simple questions so you achieve more and save time every day.
Read Article > -
The 80/20 Rule - Pareto Principle - Explained
Learn how the 80/20 rule helps you spot the few tasks that drive most results, cut busywork, and boost work efficiency, time management and business productity.
Read Article > -
Time Management Apps to Enhance Productivity
Download our free time management apps to prioritise tasks, set SMART goals and make confident decisions. Work smarter, cut stress and improve productivity.
Read Article > -
Good Time Management is Stress Management
Discover proven time management tips to reduce work stress, prioritise tasks and defeat procrastination so you work smarter, meet deadlines and feel calm daily.
Read Article > -
Managing Stress
Learn how time management and healthy habits reduce stress, control workload and build a positive mindset. Gain focus and delegate tasks with smart planning.
Read Article >
Looking for Time Management Training?
If you're looking to develop your Time Management Skills, you may find this Time Management Training Course beneficial:
Open Training Course Pricing and Availability
Next Open Course Starts in 4 days, London - Central, places available