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The Top 4 Misapplications of the 80/20 Rule

The Top 4 Misapplications of the 80/20 Rule
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    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:

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    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.

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    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

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    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…”

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    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.

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    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.

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    Last Updated on May 14, 2019

    8 Replacements for Google Notebook

    8 Replacements for Google Notebook

    Exploring alternatives to Google Notebook? There are more than a few ‘notebooks’ available online these days, although choosing the right one will likely depend on just what you use Google Notebook for.

    1. Zoho Notebook
      If you want to stick with something as close to Google Notebook as possible, Zoho Notebook may just be your best bet. The user interface has some significant changes, but in general, Zoho Notebook has pretty similar features. There is even a Firefox plugin that allows you to highlight content and drop it into your Notebook. You can go a bit further, though, dropping in any spreadsheets or documents you have in Zoho, as well as some applications and all websites — to the point that you can control a desktop remotely if you pare it with something like Zoho Meeting.
    2. Evernote
      The features that Evernote brings to the table are pretty great. In addition to allowing you to capture parts of a website, Evernote has a desktop search tool mobil versions (iPhone and Windows Mobile). It even has an API, if you’ve got any features in mind not currently available. Evernote offers 40 MB for free accounts — if you’ll need more, the premium version is priced at $5 per month or $45 per year. Encryption, size and whether you’ll see ads seem to be the main differences between the free and premium versions.
    3. Net Notes
      If the major allure for Google Notebooks lays in the Firefox extension, Net Notes might be a good alternative. It’s a Firefox extension that allows you to save notes on websites in your bookmarks. You can toggle the Net Notes sidebar and access your notes as you browse. You can also tag websites. Net Notes works with Mozilla Weave if you need to access your notes from multiple computers.
    4. i-Lighter
      You can highlight and save information from any website while you’re browsing with i-Lighter. You can also add notes to your i-Lighted information, as well as email it or send the information to be posted to your blog or Twitter account. Your notes are saved in a notebook on your computer — but they’re also synchronized to the iLighter website. You can log in to the site from any computer.
    5. Clipmarks
      For those browsers interested in sharing what they find with others, Clipmarks provides a tool to select clips of text, images and video and share them with friends. You can easily syndicate your finds to a whole list of sites such as Facebook, Twitter and Digg. You can also easily review your past clips and use them as references through Clipmarks’ website.
    6. UberNote
      If you can think of a way to send notes to UberNote, it can handle it. You can clip material while browsing, email, IM, text message or even visit the UberNote sites to add notes to the information you have saved. You can organize your notes, tag them and even add checkboxes if you want to turn a note into some sort of task list. You can drag and drop information between notes in order to manage them.
    7. iLeonardo
      iLeonardo treats research as a social concern. You can create a notebook on iLeonardo on a particular topic, collecting information online. You can also access other people’s notebooks. It may not necessarily take the place of Google Notebook — I’m pretty sure my notes on some subjects are cryptic — but it’s a pretty cool tool. You can keep notebooks private if you like the interface but don’t want to share a particular project. iLeonardo does allow you to follow fellow notetakers and receive the information they find on a particular topic.
    8. Zotero
      Another Firefox extension, Zotero started life as a citation management tool targeted towards academic researchers. However, it offers notetaking tools, as well as a way to save files to your notebook. If you do a lot of writing in Microsoft Word or Open Office, Zotero might be the tool for you — it’s integrated with both word processing software to allow you to easily move your notes over, as well as several blogging options. Zotero’s interface is also available in more than 30 languages.

    I’ve been relying on Google Notebook as a catch-all for blog post ideas — being able to just highlight information and save it is a great tool for a blogger.

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    In replacing it, though, I’m starting to lean towards Evernote. I’ve found it handles pretty much everything I want, especially with the voice recording feature. I’m planning to keep trying things out for a while yet — I’m sticking with Google Notebook until the Firefox extension quits working — and if you have any recommendations that I missed when I put together this list, I’d love to hear them — just leave a comment!

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