Advertising
Advertising

The Top 4 Misapplications of the 80/20 Rule

The Top 4 Misapplications of the 80/20 Rule
20071202-8020Rule.png

    Eighty percent of the output comes from twenty percent of the input. That is basically a summary of the Pareto Principle, or as it is more commonly known, the 80/20 Rule. The rule comes from Vilfredo Pareto, an Italian economist who noticed that 80% of Italy’s wealth was in the hands of 20% of the population.

    The 80/20 Rule points out the imbalance of effects. Just as one person might have several times the wealth as another, one hour spent on a critical project might be worth $10,000 while another might only be worth $20. The goal when using the 80/20 Rule is to maximize the small and powerful twenty percent and reduce the wasteful eighty percent.

    Despite the popularity of the rule, few people seem to understand it. I’ve seen hundreds of misapplications and confusions spouted throughout the web and in print. Some of these errors are due to not understanding what the rule means. Others are just my opinion of unfair attacks on an otherwise useful principle.

    Here are the worst attempts at using the 80/20 Rule:

    Advertising

    1) 80 + 20 = 100

    I’ve seen a few times where people try to create a diagram explaining the 80/20 rule with a pie chart. One fifth of the pie chart is labeled 20% and the rest is labeled 80%. While those of us with basic math skills can see how this adds up to 100%, the calculation undermines what the rule is about.

    The 80/20 rule argues that 20% of the input creates 80% of the output. Inputs and outputs aren’t the same thing, and therefore can’t be made into the same pie chart. The 80/20 Rule could just as easily been called The 55/3 Rule, if 55% of the results were created by 3% of the inputs.

    Don’t get caught up on the numbers. Both 80 and 20 are just examples of one type of uneven balances. The fact that they add up to 100 is a coincidence.

    Advertising

    2) 80/20 Applied Recursively

    One argument I’ve heard against the 80/20 rule goes like this, “If you keep applying the 80/20 rule, eliminating the wasteful 80%, eventually you’ll end up with nothing.” I suppose the people who argued this point felt they were being clever by using a literal, mathematical interpretation of the rule.

    Once again, the numbers here aren’t that important. The actual applications are less mathematical. When you have a limited amount of time, you won’t be able to perform every task possible. The 80/20 Rule suggests you look through all the tasks you normally could perform. Pick the top 20% that create the most results and focus on them. Whatever time you have left can be spent on the less productive 80%.

    3) 80/20 to Perfection

    Advertising

    Another way I’ve seen the rule misapplied is when building skills. It might take 2 years to become 80% proficient. But in order to get that last 20% of skill you need to invest another 8 years. While this is a fair use of the rule, the advice with skills often goes against the 80/20 Rule. Instead of eliminating the need for that last 20%, you invest most your time to master the last 20%.

    The point of the 80/20 Rule is that you should downplay or minimize the inefficient 80% of inputs. There are times, of course, when this rule doesn’t apply. Mastering a skill can be one of those areas where the 80/20 advice is faulty.

    However, by recommending the opposite of the 80/20 rule, you can’t really claim the 80/20 rule is in practice here. That would be like saying, “haste makes waste,” is the same advice as, “he who hesitates is lost.”

    4) “But I still have to do it…”

    Advertising

    An argument I’ve heard against the 80/20 rule frequently goes like this, “Sure some tasks are less valuable than others, but that doesn’t mean they don’t need to get done.” Answering e-mails, making phone calls or having meetings may appear wasteful, but they still need to get finished, right?

    This argument has an element of truth, but it conceals a bigger lie. The truth is that, yes, there are things that need to get done even though they aren’t wildly important. If I stopped answering e-mails I might miss opportunities, have my network degrade or lose important messages.

    The bigger lie is that you have no control in adjusting where time gets spent. If e-mail isn’t that important, your goal should be to reduce the time you spend on it. If meetings aren’t contributing, you should have shorter meetings. If your hands are really tied an you have no control over how your time is spent, what’s the point of reading productivity blogs like this anyways?

    How to Really Use the 80/20 Rule

    1. Pick an area of your life where you feel there is an imbalance of effects. This won’t be true of all areas, but many situations are out of balance (money, time, health and possibly even relationships).
    2. Try to identify the key 10, 20 or 40 percent of inputs that are creating most your results. This could be the 10% of time that creates the most returns. It could be the 40% of relationships that create the most happiness for you.
    3. Find ways to emphasize the key percentage. Spend more time in those activities. Place them first in your schedule. Meet up with your key friends more often. Invest more of your money in the best expenses.
    4. Find ways to downplay or eliminate the rest. Get rid of activities that don’t have a high payoff. Stop spending time in relationships that don’t create enough value. Stop wasting money on investments that aren’t giving you a greater quality of life.

    More by this author

    Scott H Young

    Scott is obsessed with personal development. For the last ten years, he's been experimenting to find out how to learn and think better.

    How to Motivate Yourself: 13 Simple Ways You Can Try Right Now 15 Ways to Cultivate Lifelong Learning for a Sharper Brain 18 Tricks to Make New Habits Stick 18 Tips for Killer Presentations 7 Rules to Live by to Get in Shape in Two Weeks

    Trending in Featured

    1 7 Steps For Making a New Year’s Resolution and Keeping It 2 New Years Resolutions Don’t Work – Here’s Why 3 40 Top Productivity Apps for iPhone (2019 Updated) 4 How to Become an Early Riser and Stay Energetic Throughout the Day 5 Lifehack Challenge: Become An Early Riser In 5 Days

    Read Next

    Advertising
    Advertising
    Advertising

    Last Updated on January 2, 2019

    7 Steps For Making a New Year’s Resolution and Keeping It

    7 Steps For Making a New Year’s Resolution and Keeping It

    Are you keen to reinvent yourself this year? Or at least use the new year as a long overdue excuse to get rid of bad habits or pick up new ones?

    Yes, it’s that time of year again. The time of year when we feel as if we have to turn over a new leaf. The time when we misguidedly imagine that the arrival of a new year will magically provide the catalyst, motivation and persistence we need to reinvent ourselves.

    Traditionally, New Year’s Day is styled as the ideal time to kick start a new phase in your life and the time when you must make your all important new year’s resolution. Unfortunately, the beginning of the year is also one of the worst times to make a major change in your habits because it’s often a relatively stressful time, right in the middle of the party and vacation season.

    Don’t set yourself up for failure this year by vowing to make huge changes that will be hard to keep. Instead follow these seven steps for successfully making a new year’s resolution you can stick to for good.

    1. Just pick one thing

    If you want to change your life or your lifestyle don’t try to change the whole thing at once. It won’t work. Instead pick one area of your life to change to begin with.

    Advertising

    Make it something concrete so you know exactly what change you’re planning to make. If you’re successful with the first change you can go ahead and make another change after a month or so. By making small changes one after the other, you still have the chance to be a whole new you at the end of the year and it’s a much more realistic way of doing it.

    Don’t pick a New Year’s resolution that’s bound to fail either, like running a marathon if you’re 40lbs overweight and get out of breath walking upstairs. If that’s the case resolve to walk every day. When you’ve got that habit down pat you can graduate to running in short bursts, constant running by March or April and a marathon at the end of the year. What’s the one habit you most want to change?

    2. Plan ahead

    To ensure success you need to research the change you’re making and plan ahead so you have the resources available when you need them. Here are a few things you should do to prepare and get all the systems in place ready to make your change.

    Read up on it – Go to the library and get books on the subject. Whether it’s quitting smoking, taking up running or yoga or becoming vegan there are books to help you prepare for it. Or use the Internet. If you do enough research you should even be looking forward to making the change.

    Plan for success – Get everything ready so things will run smoothly. If you’re taking up running make sure you have the trainers, clothes, hat, glasses, ipod loaded with energetic sounds at the ready. Then there can be no excuses.

    Advertising

    3. Anticipate problems

    There will be problems so make a list of what they’ll be. If you think about it, you’ll be able to anticipate problems at certain times of the day, with specific people or in special situations. Once you’ve identified the times that will probably be hard work out ways to cope with them when they inevitably crop up.

    4. Pick a start date

    You don’t have to make these changes on New Year’s Day. That’s the conventional wisdom, but if you truly want to make changes then pick a day when you know you’ll be well-rested, enthusiastic and surrounded by positive people. I’ll be waiting until my kids go back to school in February.

    Sometimes picking a date doesn’t work. It’s better to wait until your whole mind and body are fully ready to take on the challenge. You’ll know when it is when the time comes.

    5. Go for it

    On the big day go for it 100%. Make a commitment and write it down on a card. You just need one short phrase you can carry in your wallet. Or keep it in your car, by your bed and on your bathroom mirror too for an extra dose of positive reinforcement.

    Your commitment card will say something like:

    Advertising

    • I enjoy a clean, smoke-free life.
    • I stay calm and in control even under times of stress.
    • I’m committed to learning how to run my own business.
    • I meditate daily.

    6. Accept failure

    If you do fail and sneak a cigarette, miss a walk or shout at the kids one morning don’t hate yourself for it. Make a note of the triggers that caused this set back and vow to learn a lesson from them.

    If you know that alcohol makes you crave cigarettes and oversleep the next day cut back on it. If you know the morning rush before school makes you shout then get up earlier or prepare things the night before to make it easier on you.

    Perseverance is the key to success. Try again, keep trying and you will succeed.

    7. Plan rewards

    Small rewards are great encouragement to keep you going during the hardest first days. After that you can probably reward yourself once a week with a magazine, a long-distance call to a supportive friend, a siesta, a trip to the movies or whatever makes you tick.

    Later you can change the rewards to monthly and then at the end of the year you can pick an anniversary reward. Something that you’ll look forward to. You deserve it and you’ll have earned it.

    Advertising

    Whatever your plans and goals are for this year, I’d do wish you luck with them but remember, it’s your life and you make your own luck.

    Decide what you want to do this year, plan how to get it and go for it. I’ll definitely be cheering you on.

    Are you planning to make a New Year’s resolution? What is it and is it something you’ve tried to do before or something new?

    Read Next