A few years ago, I encountered the Pareto Principle or commonly known as the 20/80 principle through a book I read. I became interested in it that I began to research more about it online. Once I started to learn more about the process and principles around it, that’s when I started to apply them to my life and work.
Today, I find it to be one of the most useful tools in identifying the priorities for individuals that I coach or for businesses that I consult for. Each leader I think should know the 20/80 principle in the area of overseeing people and in leadership. Here’s an example: 20 percent of the people in a company will be responsible for 80 percent of the success of the company. Another one would be 20 percent of the things you study directly about your job on your own,will be 80 percent of what you will be able to apply to your work.
Strategies below will be vital for a leader to increase the productivity of his company or organization:
1. Ask the 20 percent to perform on-the-job training for the next 20 percent.
2. Spend 80 percent of your personal developmental funds on the top 20 percent of your people.
3. Determine whcih people are the top 20 percent producers in your company.
4. Spend 80 percent of your time with your people with the top 20 percent in number 3.
5. Find out what 20 percent of the work will provide 80 percent of the return and begin training an assistant to do 80 percent less effective work. This will then free up the producers to do what they do best instead.
Always teach what we know, because we reproduce what we are. We get what we give yes, but I believe too that we give more than what we get.
Question of the day: What is your own 20/80 Principle in life now?