The 80 / 20 Rule

Have you ever heard of the 80 / 20 rule? AkA The Pareto Principle. It was named after the Italian economist Vilfredo Pareto, who observed that 80% of income in Italy was received by 20% of the Italian population. The common application speaks to the assumption that most of the results in any situation are determined by a small number of causes. As the numbers work, 80 percent of your outcomes come from 20 percent of your inputs. A good example of the theory is frequently applied in the context of a sale-force of an organization. It reflects the performance of the top sales people of an organization. It simply stats, that 80% of the sales volume of a company often comes from only 20% of the sales force … the Top Performing 20%. It’s where most companies reap the highest financial rewards for the products or services they sell. These individuals have refined and mastered their skill sets to the point where they’re well oiled producers; they are extremely effective and know how to be “Rain Makers”. Without a doubt, they are extremely valued by the organization.


Well let me share a secret … the same premise applies to you on a personal level within the collection of strengths you possess. You have a wide range of skills you can perform – some at an extremely effective / dynamic level and some --- well, not so much. Right? Let’s look closer at how this ratio plays out for you. You have selected talents you’ve naturally relied on over many years. You have honed them into a collection of highly valued abilities. If you think about it, you’ll see what I mean. You have skills, talents and abilities that you tend to “fall back on”. The stuff when you use, you know you can, as I like to say, “hit it out of the park”. If you take the time to examine your success path, you will recognize that you are dramatically more effective when you put these assets to work and leverage them. Let me give you an example. Let’s say you’re very good at understanding and then communicating the strength of an idea or strategy. You have the ability to get to the core of the positive impact with grace and tact quickly. You ask questions that are insightful. Then actively listen to gain as much detail from whom you are talking. You then position the conversations to highlight what you have just learned and gain trust easliy. This is a real asset to you and any organization with whom you have a working relationship.


I often refer to these as “your deliverables”. What you bring to the table, so to speak. Once you have identified and understand your strengths and how you use your assets; you begin to know how you can make a difference in a big way. Here’s where it starts to play in your favor. Now you can begin to create an environment where you are highly valued, by leveraging - using this strength as your 20% to create results - big results … your 80%. But let me ask you a question, “Do you know what your 20% are? If you want to find out more about how you uncover this you might want to read Are You Thriving … Or Just Surviving?